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Parker-Hannifin (PH) Q1 Earnings Beat, Revenues Miss

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Cleveland, Ohio-based Parker-Hannifin Corporation (PH - Free Report) is a prominent built-up components & equipment company, conducting trade in the global industrial goods sector. The company produces control and motion technologies as well as systems that are traded across different aerospace, industrial and mobile marketplaces located around the world.

PH’s renewed “Win Strategy,” which aims to measure excellence of customer service through efficient business and cash management schemes, continues to be one of its major strengths. The company also expects to gain some traction from improving demand and incremental savings from its realignment actions. Also, its accretive acquisitions continue to strengthen its core business.

However, prolonged sluggishness in natural resources market that includes oil and gas, agriculture, mining and construction equipment are proving to be a major concern for the company. Softness in key end-markets has adversely impacted order levels for the past few quarters. Also, restructuring expenses and strengthening of the U.S. dollar are adding to the company’s woes.

PH has an impressive track record of beating earnings estimates in the recent past. In the four trailing quarters, PH has reported a positive average earnings surprise of 11.1%, beating estimates all through.

PARKER HANNIFIN Price and EPS Surprise

 

PARKER HANNIFIN Price and EPS Surprise | PARKER HANNIFIN Quote

Currently, PH has a Zacks Rank #3 (Hold) but that could change following its first-quarter fiscal 2017 earnings report which has just released.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings:PH beat on earnings. Adjusted Earnings per share came in at $1.61, comfortably beating the Zacks Consensus Estimate of $1.57.

Revenue:Revenues of $2,743.1 million fell short of the Zacks Consensus Estimate of $2,767 million.

Key Stats:During the reported quarter, PH repurchased approximately $115 million of Parker. This marks the completion of the company’s commitment to repurchase a minimum of $2 billion in shares by Oct 2016.

Stock Price:PH shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this PH earnings report later!

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