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Parker-Hannifin (PH) Q4 Earnings Top, Revenues Miss Estimates
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Parker-Hannifin Corporation (PH - Free Report) reported mixed results for fourth-quarter fiscal 2018 (ended June 2018).
Earnings/ Revenues
Quarterly adjusted earnings came in at $3.22 per share, up 31.4% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $2.91.
Adjusted earnings for fiscal 2018 came in at $10.42 per share, higher than the year-ago tally of $8.11 per share. Also, the bottom line surpassed the Zacks Consensus Estimate of $10.10.
Revenues in the fiscal fourth quarter were $3,817.4 million, up 9.2% year over year. However, the top line fell short of the Zacks Consensus Estimate of $3,837 million. Revenues during the quarter improved 9% year over year organically.
Revenues for fiscal 2018 came in at $14.3 billion, up from $12 billion recorded in the year-ago period. However, the reported figure came in line with the Zacks Consensus Estimate.
Segmental Break-Up
Revenues in the North American segment in the fiscal fourth quarter came in at $1,804.9 million, up 8.4% year over year.
The company’s International top-line performance improved 12.1% to $1,376.1 million in the reported quarter.
Revenues in the Aerospace Systems segment were $636.4 million, up 5.6% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Cost of sales in the fiscal fourth quarter was $2,835.9 million, up 44.5% year over year. Selling, general and administrative expenses were $422.4 million, up from $402.4 million recorded in the year-ago quarter. Adjusted operating margin in Q4 was 17.5%, up 70 basis points (bps) year over year.
Balance Sheet/Cash Flow
Exiting fiscal 2018, Parker-Hannifin had cash and cash equivalents of $822.1 million, down from $884.9 million recorded as of Jun 30, 2017. Long-term debt stood at $4,318.6 million, down from $4,861.9 million recorded at the end of fiscal 2017.
In fiscal 2018, the company generated $1,600.3-million cash from operating activities, up from $1,302.5 million recorded in the comparable period last year. Capital expenditures totaled $2,46.7 million, up 21.6% year over year.
Full-year free cash-flow generation was $1.6 billion, up from $1.3 billion recorded in the year-earlier period.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of its ongoing Win Strategy. The company anticipates generating adjusted earnings of $10.70-$11.50 per share in fiscal 2019. Organic revenue growth is predicted to lie within the 2.3-5.1% range.
Zacks Rank and Stocks to Consider
Parker-Hannifin currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. currently sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks Rank #1 Rank stocks here.
Chart Industries, Inc. (GTLS - Free Report) also flaunts a Zacks Rank of 1. The company recorded an average positive earnings surprise of 29.36% over the trailing four quarters.
Barnes Group, Inc. (B - Free Report) holds a Zacks Rank #2 (Buy). The company came up with an average positive earnings surprise of 6.88% during the same time frame.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
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Parker-Hannifin (PH) Q4 Earnings Top, Revenues Miss Estimates
Parker-Hannifin Corporation (PH - Free Report) reported mixed results for fourth-quarter fiscal 2018 (ended June 2018).
Earnings/ Revenues
Quarterly adjusted earnings came in at $3.22 per share, up 31.4% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $2.91.
Adjusted earnings for fiscal 2018 came in at $10.42 per share, higher than the year-ago tally of $8.11 per share. Also, the bottom line surpassed the Zacks Consensus Estimate of $10.10.
Revenues in the fiscal fourth quarter were $3,817.4 million, up 9.2% year over year. However, the top line fell short of the Zacks Consensus Estimate of $3,837 million. Revenues during the quarter improved 9% year over year organically.
Revenues for fiscal 2018 came in at $14.3 billion, up from $12 billion recorded in the year-ago period. However, the reported figure came in line with the Zacks Consensus Estimate.
Segmental Break-Up
Revenues in the North American segment in the fiscal fourth quarter came in at $1,804.9 million, up 8.4% year over year.
The company’s International top-line performance improved 12.1% to $1,376.1 million in the reported quarter.
Revenues in the Aerospace Systems segment were $636.4 million, up 5.6% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation Price, Consensus and EPS Surprise | Parker-Hannifin Corporation Quote
Costs/Margins
Cost of sales in the fiscal fourth quarter was $2,835.9 million, up 44.5% year over year. Selling, general and administrative expenses were $422.4 million, up from $402.4 million recorded in the year-ago quarter. Adjusted operating margin in Q4 was 17.5%, up 70 basis points (bps) year over year.
Balance Sheet/Cash Flow
Exiting fiscal 2018, Parker-Hannifin had cash and cash equivalents of $822.1 million, down from $884.9 million recorded as of Jun 30, 2017. Long-term debt stood at $4,318.6 million, down from $4,861.9 million recorded at the end of fiscal 2017.
In fiscal 2018, the company generated $1,600.3-million cash from operating activities, up from $1,302.5 million recorded in the comparable period last year. Capital expenditures totaled $2,46.7 million, up 21.6% year over year.
Full-year free cash-flow generation was $1.6 billion, up from $1.3 billion recorded in the year-earlier period.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of its ongoing Win Strategy. The company anticipates generating adjusted earnings of $10.70-$11.50 per share in fiscal 2019. Organic revenue growth is predicted to lie within the 2.3-5.1% range.
Zacks Rank and Stocks to Consider
Parker-Hannifin currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. currently sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks Rank #1 Rank stocks here.
Chart Industries, Inc. (GTLS - Free Report) also flaunts a Zacks Rank of 1. The company recorded an average positive earnings surprise of 29.36% over the trailing four quarters.
Barnes Group, Inc. (B - Free Report) holds a Zacks Rank #2 (Buy). The company came up with an average positive earnings surprise of 6.88% during the same time frame.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>