Back to top

Analyst Blog

Parker Hannifin (PH - Analyst Report) is set to report its second quarter 2013 results on January 18, 2013. The company posted a -9.25% surprise in the last quarter.  Let’s see how things are shaping up for this announcement.

Growth Factors This Past Quarter

Parker was primarily affected by major cancellations and rescheduling of orders in the prior quarter. The industrial business, which makes up around three-quarters of its revenue declined.

The decline was attributable to recessionary conditions in Europe, moderating growth in Asia, negative currency translations and flat organic sales. In addition, orders also declined. The five acquisitions completed in the first quarter had a positive impact on quarterly sales.  

The company expects the sluggish trends to continue through the second quarter of fiscal 2013 and has therefore lowered its fiscal 2013 guidance. Earnings are now expected to be in the range of $6.15 to $6.75 per diluted share, down from the prior guidance of $7.10 to $7.90.

Earnings Whispers?

Our proven model does not conclusively show that Parker is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, #2 or #3 for this to happen. That is not the case here as you will see below.

Negative Zacks ESP: The Most Accurate estimate stands at $1.07 while the Zacks Consensus Estimate is higher at $1.13. That is a difference of -5.3%.

Zacks Rank #3 (Hold):  Parker’s Zacks Rank #3 (Hold) lowers the predictive power of ESP because the Zacks Rank #3 when combined with a negative ESP makes surprise prediction difficult.

Other Stocks to Consider

The following is one of the company’s peers you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter:  

  • Altra Holdings Inc. (AIMC - Snapshot Report) -- Earnings ESP of 4.0% and Zacks #1 Rank (Strong Buy)

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%