- AIT is scheduled to report fourth quarter and full year 2020 earnings, pre-market on January 28, 2021.
- AIT has achieved earnings beats for the last five quarters, which could be a reason for the present P/E multiple being well above historical levels.
- The biggest danger to AIT's share price, and consequently shareholder returns, is a contraction of its P/E multiple closer to historical levels.
- Shareholders should look to see AIT achieve another earnings beat for Q4-2020, and be very concerned at any earnings miss, which could trigger multiple contraction.
For further details see:
Applied Industrial Technologies: High Multiple, Lack Of EPS Growth, Avoid