Analysts Estimate Applied Industrial Technologies (AIT) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Applied Industrial Technologies (AIT) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being a significant factor influencing the stock price in the near term [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for January 29, 2025, with a consensus estimate of $2.22 per share, reflecting a -0.9% change year-over-year. Revenues are projected to be $1.08 billion, which is a slight increase of 0.1% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for AIT is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.68%. This suggests a bearish outlook from analysts regarding the company's earnings prospects [10][11]. Historical Performance - In the last reported quarter, AIT was expected to post earnings of $2.24 per share but exceeded expectations with actual earnings of $2.36, resulting in a surprise of +5.36%. Over the last four quarters, the company has consistently beaten consensus EPS estimates [12][13]. Conclusion on Earnings Beat Potential - Given the current Earnings ESP and Zacks Rank of 2, AIT does not appear to be a strong candidate for an earnings beat. Investors are advised to consider other factors when making decisions regarding this stock ahead of the earnings release [11][16].