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Parker-Hannifin (PH) Q1 Earnings & Revenues Beat, Up Y/Y
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Parker-Hannifin Corporation (PH - Free Report) reported first-quarter fiscal 2022 (ended Sep 30, 2022) adjusted earnings (excluding $1.76 from non-recurring items) of $4.74 per share, which beat the Zacks Consensus Estimate of $4.15. The bottom line improved approximately 11.3% year over year.
Total revenues of $4,232.8 million also outperformed the Zacks Consensus Estimate of $3,923 million. The top line increased 12.5% year over year. Organic sales for the quarter increased 14.2% year over year. Orders were up 5% year over year.
Segmental Details
The Diversified Industrial segment’s revenues totaled $3,486.8 million, representing 82.4% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 10%.
Revenues generated in North America totaled $2,131.8 million, up 19% year over year. International revenues were $1,355 million, down 2% from the prior-year quarter. Orders for Diversified Industrial North America grew 3%, while Diversified Industrial International increased 6% year over year.
The Aerospace Systems segment generated revenues of $746 million, accounting for 17.6% of net revenues for the reported quarter. Sales increased 26% year over year. Orders for the quarter increased 5% on a rolling 12-month average basis.
For the reported quarter, Parker-Hannifin’s cost of sales increased 11.6% year over year to $2,795.5 million. Selling, general and administrative expenses increased 33.4% from the prior-year to $626.7 million.
Adjusted total segment operating income increased 12.1% year over year to $839.1 million. The total segment operating margin improved to 22.7% from 22% in the year-ago period. Interest expenses for the quarter increased 98.3% from the prior-year period to $117.8 million.
Balance Sheet & Cash Flow
Exiting the first quarter of fiscal 2023, Parker-Hannifin had cash and cash equivalents of $502.3 million compared with $478.6 million in the year-ago period. Long-term debt was $12.2 billion compared with $6.3 billion at the end of the year-ago period.
In the first three months of fiscal 2023, PH generated net cash of $457.4 million from operating activities compared with $424.4 million at the end of the year-ago quarter. Capital spending totaled $83.6 million in the first three months of fiscal 2023 compared with $48.2 million a year ago.
During the fiscal first three months, Parker-Hannifin paid out cash dividends of $171.2 million, up 28.8% from the year-ago period.
Outlook
Parker-Hannifin updated its outlook for fiscal 2023 which includes the acquisition of Meggitt plc and the divestiture of the Aircraft Wheel and Brake Division. The company expects fiscal 2023 organic sales growth in the range of 4.5-7.5% compared with 2-5% anticipated earlier. The company expects earnings per share in the band of $12.85-$13.55 compared with $16.13-$16.93 predicted earlier. Adjusted earnings per share are anticipated in the range of $18.60-$19.30 compared with $18.10-$18.90 expected earlier.
Zacks Rank & Stocks to Consider
PH currently carries a Zacks Rank #2 (Buy).
Some other top-ranked companies from the Industrial Products sector are discussed below:
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 15.4% in the past six months.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank #1 and a trailing four-quarter earnings surprise of 24.8%, on average.
AIT’s earnings estimates have increased 3% for fiscal 2023 (ending June 2023) in the past 60 days. The company’s shares have risen 12.6% in the past six months.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 1.5% for 2022. The stock has rallied 10.6% in the past six months.
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Parker-Hannifin (PH) Q1 Earnings & Revenues Beat, Up Y/Y
Parker-Hannifin Corporation (PH - Free Report) reported first-quarter fiscal 2022 (ended Sep 30, 2022) adjusted earnings (excluding $1.76 from non-recurring items) of $4.74 per share, which beat the Zacks Consensus Estimate of $4.15. The bottom line improved approximately 11.3% year over year.
Total revenues of $4,232.8 million also outperformed the Zacks Consensus Estimate of $3,923 million. The top line increased 12.5% year over year. Organic sales for the quarter increased 14.2% year over year. Orders were up 5% year over year.
Segmental Details
The Diversified Industrial segment’s revenues totaled $3,486.8 million, representing 82.4% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 10%.
Revenues generated in North America totaled $2,131.8 million, up 19% year over year. International revenues were $1,355 million, down 2% from the prior-year quarter. Orders for Diversified Industrial North America grew 3%, while Diversified Industrial International increased 6% year over year.
The Aerospace Systems segment generated revenues of $746 million, accounting for 17.6% of net revenues for the reported quarter. Sales increased 26% year over year. Orders for the quarter increased 5% on a rolling 12-month average basis.
ParkerHannifin Corporation Price and Consensus
ParkerHannifin Corporation price-consensus-chart | ParkerHannifin Corporation Quote
Margin Profile
For the reported quarter, Parker-Hannifin’s cost of sales increased 11.6% year over year to $2,795.5 million. Selling, general and administrative expenses increased 33.4% from the prior-year to $626.7 million.
Adjusted total segment operating income increased 12.1% year over year to $839.1 million. The total segment operating margin improved to 22.7% from 22% in the year-ago period. Interest expenses for the quarter increased 98.3% from the prior-year period to $117.8 million.
Balance Sheet & Cash Flow
Exiting the first quarter of fiscal 2023, Parker-Hannifin had cash and cash equivalents of $502.3 million compared with $478.6 million in the year-ago period. Long-term debt was $12.2 billion compared with $6.3 billion at the end of the year-ago period.
In the first three months of fiscal 2023, PH generated net cash of $457.4 million from operating activities compared with $424.4 million at the end of the year-ago quarter. Capital spending totaled $83.6 million in the first three months of fiscal 2023 compared with $48.2 million a year ago.
During the fiscal first three months, Parker-Hannifin paid out cash dividends of $171.2 million, up 28.8% from the year-ago period.
Outlook
Parker-Hannifin updated its outlook for fiscal 2023 which includes the acquisition of Meggitt plc and the divestiture of the Aircraft Wheel and Brake Division. The company expects fiscal 2023 organic sales growth in the range of 4.5-7.5% compared with 2-5% anticipated earlier. The company expects earnings per share in the band of $12.85-$13.55 compared with $16.13-$16.93 predicted earlier. Adjusted earnings per share are anticipated in the range of $18.60-$19.30 compared with $18.10-$18.90 expected earlier.
Zacks Rank & Stocks to Consider
PH currently carries a Zacks Rank #2 (Buy).
Some other top-ranked companies from the Industrial Products sector are discussed below:
Enerpac Tool Group Corp. (EPAC - Free Report) delivered an average four-quarter earnings surprise of 3.4%. EPAC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 15.4% in the past six months.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank #1 and a trailing four-quarter earnings surprise of 24.8%, on average.
AIT’s earnings estimates have increased 3% for fiscal 2023 (ending June 2023) in the past 60 days. The company’s shares have risen 12.6% in the past six months.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 1.5% for 2022. The stock has rallied 10.6% in the past six months.