Back to top

Analyst Blog

Parker Hannifin Corporation (PH - Analyst Report) has been assiduously expanding its market share, especially in the emerging economies and business portfolio over time despite facing the ongoing difficult macro-economic conditions. Acquisition of a number of private labels paved the way for such a business expansion; the latest on its record being PIX Transmissions Ltd. in India.

Post acquisition, Parker's Fluid Connectors Group will conflate with PIX Transmissions’ hydraulics manufacturing business, and it will be regarded as a unit of the company’s International Industrial Segment. However, the financial terms and conditions of the agreement were not unveiled.

The agreement is seen as a positive aspect for the company's manufacturing business which is expected to eminently strengthen Parker’s businesses in India and bolster its performances quite comprehensively. Besides, the acquisition will also help the company in augmenting its product base.

The previous acquisition of John Fowler (India) Private Limited by Parker is also likely to have a positive impact on the company’s growth prospects in the emerging markets. Earlier, in the third quarter of fiscal 2012, the company witnessed about 4.7% augmentation in net sales from the year-ago quarter. Net income for the quarter also came in at $312.7 million, up 11.0% from the prior year quarter.

We believe Parker stands in a favorable position to benefit from new business wins, tremendous geographical diversification and product mix. Furthermore, the company’s strong consumer insight is likely to support its growth momentum.However, it faces fierce competition from its peers such as DXP Enterprises, Inc. (DXPE - Snapshot Report), Kadant Inc. (KAI - Snapshot Report) and Nordson Corporation (NDSN - Snapshot Report).

The current Zacks Consensus Estimate for the fourth quarter of 2012 is $1.93, reflecting a year-over-year growth of 8.01%. Estimates for the fiscal year 2012 and 2013 are $7.41 and $7.98, representing annual growth of 16.33% and 7.64%, respectively. We currently maintain a ‘Neutral’ recommendation on Parker. The stock carries a Zacks #3 Rank, translating into a short-term (1-3 months) ‘Hold’ rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CTPARTNERS… CTP 13.33 +3.49%
SAIA INC SAIA 45.65 +1.00%
VASCO DATA… VDSI 13.57 +0.67%
AMEDISYS IN… AMED 20.18 +0.10%
FIRSTSERVIC… FSRV 55.66 -0.13%