Applied Industrial Backs FY17 Forecast As Q1 Profit Tops View - Quick Facts

(RTTNews) - Applied Industrial Technologies (AIT) on Wednesday said it has maintained its full-year fiscal 2017 earnings guidance of between $2.40 and $2.60 per share on a sales change of negative 3.0 percent to up 1.0 percent.

On average, 7 analysts polled by Thomson Reuters expect earnings of $2.51 per share for the year. Analysts' estimates typically exclude special items.

President & Chief Executive Officer Neil Schrimsher said, "While we are maintaining our full-year earnings guidance, our bias is above the midpoint of our projected range. We do anticipate traditional seasonality coupled with fewer sales days in our second quarter, along with ongoing benefits from our restructuring activities. In addition, we expect some cost increases from our talent initiatives and technology investments as we move through fiscal 2017."

In its first quarter, net income increased to $27.37 million, or $0.70 per share from $24.29 million, or $0.61 per share a year ago.

Net sales for the quarter were $624.8 million, a decrease of 2.7 percent from $641.9 million in the same quarter a year ago.

Analysts were looking for earnings of $0.61 per share on revenues of $625.57 million for the quarter.

The overall sales decrease for the quarter reflects a 2.4 percent increase from acquisition-related volume, offset by a 4.8 percent decrease in underlying operations and a negative 0.3 percent foreign currency translation impact.

Further, the company announced that its Board of Directors declared a quarterly cash dividend of $0.28 per share, payable on November 30 to shareholders of record on November 15.

On October 24, the Board authorized the repurchase of up to an additional 1.5 million shares of the Company's common stock - a plan that replaces the prior share repurchase plan.