Investing in Applied Industrial Technologies (AIT)? Don’t Miss Assessing Its International

May 13, 2025

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Have you looked into how Applied Industrial Technologies (AIT) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this industrial products company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company’s dependence on international markets, as it sheds light on the firm’s earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

In our recent assessment of AIT’s quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

For the quarter, the company’s total revenue amounted to $1.17 billion, experiencing an increase of 1.8% year over year. Next, we’ll explore the breakdown of AIT’s international revenue to understand the importance of its overseas business operations.

Of the total revenue, $71.56 million came from Canada during the last fiscal quarter, accounting for 6.13%. This represented a surprise of -10.14% as analysts had expected the region to contribute $79.63 million to the total revenue. In comparison, the region contributed $77.78 million, or 7.25%, and $73.39 million, or 6.40%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other International contributed $62.91 million in revenue, making up 5.39% of the total revenue. When compared to the consensus estimate of $66.82 million, this meant a surprise of -5.85%. Looking back, Other International contributed $65.68 million, or 6.12%, in the previous quarter, and $55.84 million, or 4.87%, in the same quarter of the previous year.

For the current fiscal quarter, it is anticipated by Wall Street analysts that Applied Industrial Technologies will report a total revenue of $1.18 billion, which reflects an increase of 1.8% from the same quarter in the previous year. The revenue contributions are expected to be 7% from Canada ($82.99 million) and 6% from Other International ($71.13 million).

Analysts expect the company to report a total annual revenue of $4.52 billion for the full year, marking an increase of 0.9% compared to last year. The expected revenue contributions from Canada and Other International are projected to be 6.9% ($311.89 million) and 6.1% ($273.88 million) of the total revenue, in that order.

Relying on international markets for revenues, Applied Industrial Technologies faces both prospects and perils. Thus, tracking the company’s international revenue trends is essential for accurately projecting its future trajectory.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company’s standing within its home borders, that influence analysts’ earnings forecasts.

At Zacks, we place significant importance on a company’s evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock’s short -term price movements. Invariably, there exists a positive relationship — an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock’s price performance in the near term.

Currently, Applied Industrial Technologies holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market’s performance in the forthcoming period. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Over the past month, the stock has gained 3.2% versus the Zacks S&P 500 composite’s 9.1% increase. The Zacks Industrial Products sector, of which Applied Industrial Technologies is a part, has risen 12.7% over the same period. The company’s shares have declined 11.9% over the past three months compared to the S&P 500’s 3.1% decline. Over the same period, the sector has declined 2.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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