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Parker-Hannifin's Unit Boosts UK Site, Launches SciLog Suite

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Parker-Hannifin Corporation’s (PH - Free Report) unit, Parker Bioscience Filtration, recently announced the opening of a new testing facility at Birtley, U.K. site. Notably, the move will complement the unit’s work of designing, supplying as well as delivering whole system solutions to biopharmaceutical manufacturing industry.

Notably, the incorporation of the SciLog Suite at the Birtley site will facilitate testing and optimization of key unit operations of its customers’ production process, apart from supporting process development. This, in turn, will enable its customers to boost their supply chain process, process control and efficiency throughout production and packaging. Also, the company can utilize the facility for in-depth training of operators and engineers. Featuring SciLog SciPure FD system, the SciLog Suite will help biopharmaceutical manufacturers to gain greater insights into their processes.

The unit is also working on extending the SciLog Suite to incorporate the SciLog SciFlex TFF, the SciLog SciFlex NFF and the SciLog SciPure System apart from adding other products to the suite.

In addition, the unit unveiled a new ISO Class 7 cleanroom facility at the same site. As a matter of fact, the latest cleanroom facility will support the unit’s operations in Europe along with supporting operations of current single-use assembly manufacturing facilities in the United States.

Our Take

Strength in industrial end-markets like transportation, construction and refrigeration will likely continue to bolster Parker-Hannifin's revenues in the quarters ahead. Moreover, the benefits of its unique Win Strategy and ongoing investments are likely to support the company’s revenue growth trajectory. Notably, it currently anticipates organic revenue growth of 2-4% for fiscal 2019.

In the past six months, this Zacks Rank #3 (Hold) company has gained 0.8% against industry’s decline of 1.7%.

Also, Parker-Hannifin intends to finance new growth-based investments, acquire businesses and boost shareholders' remuneration with increased liquidity. The company stated that integration process of its CLARCOR acquisition (completed in March 2017) is well on track. It noted that this buyout will likely bring in synergy savings worth $125 million in fiscal 2019 and roughly $160 million in fiscal 2020.

Although the company's realignment plan and CLARCOR acquisition might prove beneficial over the long run, it is affecting its near-term financials. For instance, in the fiscal second quarter, business-realignment expenses and CLARCOR integration costs hurt the company's adjusted earnings by 1 cent per share and 3 cents per share, respectively. In fiscal 2019, Parker-Hannifin expects to incur business-realignment expenses of $19 million and roughly $15 million CLARCOR integration cost.

Stocks to Consider

Some better-ranked stocks from the same space are Dover Corporation (DOV - Free Report) , Chart Industries, Inc. (GTLS - Free Report) and Roper Technologies, Inc. (ROP - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dover delivered average earnings surprise of 6.59% in the trailing four quarters.

Chart Industries pulled off average positive earnings surprise of 23.60% in the trailing four quarters.

Roper delivered average earnings surprise of 4.96% in the trailing four quarters.

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