Applied Industrial Technologies' stock plummeted 5.09% during intraday trading on Tuesday, following the release of its fiscal second-quarter earnings results.
The industrial distributor reported quarterly sales of $1.163 billion, which slightly missed the analyst consensus estimate of $1.169 billion. While the company's earnings per share of $2.51 beat expectations, several other key financial metrics fell short of Wall Street forecasts. Operating income, EBITDA, and pretax profit all came in below analyst estimates for the quarter.
Investors reacted negatively to the results and the company's updated fiscal 2026 outlook. Applied Industrial Technologies narrowed its full-year EPS guidance to a range of $10.45 to $10.75 and noted ongoing macroeconomic uncertainty is impacting customer spending. The company also cited higher-than-expected LIFO expense as a factor impacting earnings performance.