Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Applied Industrial Technologies Shares Soared

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of equipment distributor Applied Industrial Technologies (NYSE: AIT  ) were flying today, up as much as 10% after the company reported earnings this morning.

So what: Earnings of $0.75 per share beat estimates by $0.04, while revenue came in below expectations at $620 million, but the real bone for shareholders came in next year's guidance. The company projected earnings per share in fiscal 2013, which it just began, of $2.90-$3.05, well ahead of analyst estimates of $2.80. Management also expects revenue growth of 9% to 13% for the coming year.

Now what: A number of acquisitions have boosted Applied in the last year, and a buyback program and a 2.2% dividend yield have helped increase value for shareholders. Shares have been on a solid run over the past year with gains of 60%, and while I don't think that will be repeated, I don't see any reason to sell. Management expressed optimism about the "industrial economic environment" in the near term, and it seems the business should continue spinning off cash to return to shareholders.

Want to keep an eye on Applied Industrial Technologies? Just add it to your watchlist by clicking here.

Fool contributor Jeremy Bowman holds no positions in the companies in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1979527, ~/Articles/ArticleHandler.aspx, 10/23/2016 8:01:13 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
AIT $44.82 Down -0.18 -0.40%
Applied Industrial… CAPS Rating: *****