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Parker-Hannifin (PH) to Post Q3 Earnings: What's in the Cards?
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Parker-Hannifin Corporation (PH - Free Report) is slated to report third-quarter fiscal 2022 (ended March 2022) results on May 5, before the opening bell.
The company delivered an earnings surprise of 10.03%, on average, in the trailing four quarters, beating estimates on all occasions. Parker-Hannifin’s second-quarter fiscal 2022 (ended December 2021) adjusted earnings of $4.46 per share outpaced the Zacks Consensus Estimate of $3.85 by 15.84%.
Image Source: Zacks Investment Research
In the past three months, shares of the company have lost 9.9%, in line with the industry’s decline.
Factors to Note
Healthy orders for Parker-Hannifin’s products in the industrial end market are anticipated to have augmented its top line in the fiscal third quarter. Also, recovery in the company’s commercial aerospace end market might have supported its performance. However, supply-chain constraints and logistics issues might have weighed on its performance in the to-be-reported quarter.
Given the strength across the company’s acquired businesses, acquisitions are likely to have positively impacted its revenues in the fiscal third quarter. PH acquired LORD Corporation and Exotic Metals Forming Company in fiscal 2020 (ended June 2020). While the company’s acquisition of LORD Corporation (in October 2019) strengthened its engineered materials’ product and solutions offerings, its Exotic Metals Forming takeover complemented its aerospace products and solutions.
The company has been dealing with rising costs and operating expenses over time. In the fiscal second quarter, its cost of sales increased 9.8% year over year, while selling and administrative expenses jumped 6.8%. Its realignment plan has been fuelling expenses and adversely impacting profitability over the past few quarters — a trend which might have continued in the to-be-reported quarter. PH’s realignment expenses hurt its adjusted earnings by 2 cents and 3 cents per share in the fiscal first quarter (ended September 2021) and the fiscal second quarter, respectively.
Given its extensive regional presence, Parker-Hannifin’s operations are subject to global economic and political risks and forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter fiscal 2022 revenues for the Aerospace segment is pegged at $649 million, suggesting growth of 8.3% from the year-ago reported figure and a 5% rise on a sequential basis. The consensus mark for revenues for the North America operations of the Diversified Industrial segment stands at $1,935 million, indicating growth of 10.1% year over year and an improvement of 7.1% from the quarter-ago reported number. The consensus mark of $1,446 million for International operations of the Diversified Industrial segment indicates a year-over-year increase of 4.1% and a rise of 3.4% sequentially.
The Zacks Consensus Estimate for the company’s fiscal third-quarter total revenues is currently pegged at $4,064 million, suggesting growth of 8.5% from the year-ago figure. The consensus estimate for earnings of $4.61 suggests an increase of 12.2% year over year.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Parker-Hannifin has an Earnings ESP of -0.50% as the Most Accurate Estimate is pegged at $4.59, lower than the Zacks Consensus Estimate of $4.61.
Parker-Hannifin Corporation Price and EPS Surprise
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
CECO Environmental Corp. has an Earnings ESP of +9.09% and a Zacks Rank of 3 at present. CECE delivered an earnings surprise of 11.1% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates of CECE have decreased 25.8% for 2022 in the past 60 days. Its shares have lost 19.9% in the past three months.
The Middleby Corporation (MIDD - Free Report) has an Earnings ESP of +2.55% and a Zacks Rank of 3, currently. MIDD delivered a trailing four-quarter earnings surprise of 1.5%, on average.
Earnings estimates of Middleby have decreased 0.3% for 2022 in the past 60 days. Its shares have declined 15.1% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 11.5% in the past three months.
Image: Bigstock
Parker-Hannifin (PH) to Post Q3 Earnings: What's in the Cards?
Parker-Hannifin Corporation (PH - Free Report) is slated to report third-quarter fiscal 2022 (ended March 2022) results on May 5, before the opening bell.
The company delivered an earnings surprise of 10.03%, on average, in the trailing four quarters, beating estimates on all occasions. Parker-Hannifin’s second-quarter fiscal 2022 (ended December 2021) adjusted earnings of $4.46 per share outpaced the Zacks Consensus Estimate of $3.85 by 15.84%.
Image Source: Zacks Investment Research
In the past three months, shares of the company have lost 9.9%, in line with the industry’s decline.
Factors to Note
Healthy orders for Parker-Hannifin’s products in the industrial end market are anticipated to have augmented its top line in the fiscal third quarter. Also, recovery in the company’s commercial aerospace end market might have supported its performance. However, supply-chain constraints and logistics issues might have weighed on its performance in the to-be-reported quarter.
Given the strength across the company’s acquired businesses, acquisitions are likely to have positively impacted its revenues in the fiscal third quarter. PH acquired LORD Corporation and Exotic Metals Forming Company in fiscal 2020 (ended June 2020). While the company’s acquisition of LORD Corporation (in October 2019) strengthened its engineered materials’ product and solutions offerings, its Exotic Metals Forming takeover complemented its aerospace products and solutions.
The company has been dealing with rising costs and operating expenses over time. In the fiscal second quarter, its cost of sales increased 9.8% year over year, while selling and administrative expenses jumped 6.8%. Its realignment plan has been fuelling expenses and adversely impacting profitability over the past few quarters — a trend which might have continued in the to-be-reported quarter. PH’s realignment expenses hurt its adjusted earnings by 2 cents and 3 cents per share in the fiscal first quarter (ended September 2021) and the fiscal second quarter, respectively.
Given its extensive regional presence, Parker-Hannifin’s operations are subject to global economic and political risks and forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter fiscal 2022 revenues for the Aerospace segment is pegged at $649 million, suggesting growth of 8.3% from the year-ago reported figure and a 5% rise on a sequential basis. The consensus mark for revenues for the North America operations of the Diversified Industrial segment stands at $1,935 million, indicating growth of 10.1% year over year and an improvement of 7.1% from the quarter-ago reported number. The consensus mark of $1,446 million for International operations of the Diversified Industrial segment indicates a year-over-year increase of 4.1% and a rise of 3.4% sequentially.
The Zacks Consensus Estimate for the company’s fiscal third-quarter total revenues is currently pegged at $4,064 million, suggesting growth of 8.5% from the year-ago figure. The consensus estimate for earnings of $4.61 suggests an increase of 12.2% year over year.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Parker-Hannifin has an Earnings ESP of -0.50% as the Most Accurate Estimate is pegged at $4.59, lower than the Zacks Consensus Estimate of $4.61.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation Quote
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
CECO Environmental Corp. has an Earnings ESP of +9.09% and a Zacks Rank of 3 at present. CECE delivered an earnings surprise of 11.1% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates of CECE have decreased 25.8% for 2022 in the past 60 days. Its shares have lost 19.9% in the past three months.
The Middleby Corporation (MIDD - Free Report) has an Earnings ESP of +2.55% and a Zacks Rank of 3, currently. MIDD delivered a trailing four-quarter earnings surprise of 1.5%, on average.
Earnings estimates of Middleby have decreased 0.3% for 2022 in the past 60 days. Its shares have declined 15.1% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 11.5% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.