Why Applied Industrial Technologies Jumped as Much as 14% in Morning Trading
Shares of Applied Industrial Technologies (NYSE: AIT), a distributor and service provider of industrial motion and control technologies, rose as much as 14% in morning trading today. As of roughly 1:30 p.m. ET, the stock was up about 13%. The big move followed the company's fiscal fourth-quarter 2022 earnings update, which was released before the market opened.
Sales climbed 18.5% year over year to $1.1 billion in the fiscal fourth quarter and rose 17.8% for the full year. Q4 organic sales jumped 18.7%, driven by a 21% increase in the company's service center division and a 14% increase in the fluid power and flow control group. Management noted that sales accelerated during the fourth quarter, allowing it to achieve a company record.
Adjusted earnings per share came in at $2.02 in the fiscal fourth quarter and were $6.58 for the year, up 34.4% and 38.8%, respectively. Q4 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $120 million was higher by 26.5%. Like the sales figure, quarterly earnings and EBITDA were both at record levels. Although the industrial company noted the current inflationary headwinds, it was still able to expand EBITDA margins in the quarter. That's a positive sign for the future.
Source Fool.com
