Applied Industrial Technologies AIT is scheduled to release first-quarter fiscal 2027 (ended Sept. 30, 2026) results on Oct. 27, before market open.
The Zacks Consensus Estimate for AIT’s first-quarter revenues is pegged at $1.3 billion, indicating growth of 8% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.86 per share, which has been stable over the past 60 days. The figure indicates growth of 8.8% from the year-ago quarter's figure.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.3%. In the last reported quarter, its bottom line beat the consensus estimate by 8.6%.
Let us see how things have shaped up for Applied Industrial this earnings season.
Applied Industrial Technologies, Inc. Price and EPS Surprise
Applied Industrial Technologies, Inc. price-eps-surprise | Applied Industrial Technologies, Inc. Quote
Factors Likely to Have Shaped AIT’s Quarterly Performance
Applied Industrial’s Service Center segment is expected to have performed well in the fiscal first quarter, driven by solid demand for technical MRO services and internal sales initiatives. Favorable demand across metals, pulp & paper, rubber & plastics, and utilities & energy markets is likely to have augmented its top-line performance. The Zacks Consensus Estimate for the Service Center segment’s revenues is pegged at $824 million, indicating 5.4% growth from the year-ago figure.
Strength across the company’s fluid power and automation operations is likely to boost the Engineered Solutions segment’s results. A strong demand environment across its industrial/mobile OEM and technology verticals is likely to have been favorable for the segment. The Zacks Consensus Estimate for the Engineered Solutions segment’s revenues is pegged at $472 million, indicating 13.2% growth from the year-ago figure.
Applied Industrial has remained focused on expanding its product offerings and market presence through buyouts. The company completed the acquisition of Thompson Industrial Supply in January 2026.
The buyout, which has been integrated into the Service Center segment, is expected have contributed to the company’s quarterly revenues. Also, the company’s pricing strategy, product mix, sales channel execution and internal efficiency initiatives are likely to have supported margins during the quarter.
However, rising operating costs related to growth initiatives, channel development and inflationary pressures are expected to have affected the company’s bottom line. Given the company’s extensive geographic presence, its operations are also exposed to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt AIT's overseas business.
Earnings Whisper
Our proven model does not conclusively predict an earnings beat for Applied Industrial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Applied Industrial has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $2.86. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: AIT presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies which, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Emerson Electric Co. EMR has an Earnings ESP of +0.40% and a Zacks Rank of 2 at present. The company is scheduled to release fourth-quarter fiscal 2026 results on Nov. 4.
Emerson’s earnings beat the Zacks Consensus Estimate twice and matched on the other two occasions of the preceding four quarters, the average surprise being 1.3%.
Constellium CSTM has an Earnings ESP of +14.50% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on Oct. 28.
Constellium’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 83.3%.
Kennametal Inc. KMT has an Earnings ESP of +1.50% and a Zacks Rank of 3 at present. The company is slated to release first-quarter fiscal 2027 results on Nov. 4.
Kennametal’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.3%.
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Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).