By Katherine Hamilton

Applied Industrial Technologies shares fell after increased LIFO expenses weighed on quarterly sales.

The stock declined 8% to $258.88 on Tuesday. Shares are up 1.4% over the past three months.

The industrial parts distributor recorded $1.16 billion in revenue during its fiscal second quarter, which was below the $1.17 billion analysts polled by FactSet expected.

Chief Executive Neil Schrimsher said the company had a higher-than-expected Last In, First Out (LIFO) expense during the quarter, which muted sales in December.

Macroeconomic and policy uncertainty is continuing to influence customer spending behavior and shipment activity in the near-term, Schrimsher said.

Including those macro factors, Applied Industrial adjusted its full-year earnings per share guidance. It now expects earnings to be in a range of $10.45 to $10.75 a share, compared with prior guidance of $10.10 to $10.85.

The new forecast assumes an annual LIFO expense of $24 million to $26 million, up from $14 million to $18 million.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 27, 2026 11:59 ET (16:59 GMT)

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