Parker-Hannifin Corporation (PH - Free Report) is slated to release third-quarter fiscal 2023 (ended Mar 31, 2023) results on May 4, before market open.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings has been revised upward by 1% in the past 60 days. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 9.1%.
Let’s see how things have shaped up for Parker-Hannifin’s fiscal third quarter.
Factors to Note
Steady demand across end markets and higher orders are expected to have buoyed Parker-Hannifin’s fiscal third-quarter performance.
Broad-based growth in the North American region is expected to have boosted revenues in the Diversified Industrial segment. The Zacks Consensus Estimate for Diversified Industrial North America revenues indicates an 8.2% rise from the year-ago reported number.
The Aerospace Systems segment is expected to generate significantly higher revenues on the back of the Meggitt acquisition (September 2022), which has expanded Parker-Hannifin’s presence in the UK, positioning it well to provide a broader suite of solutions for aircraft and aeroengine components and systems.
Robust original equipment manufacturer and Maintenance, Repair and Operations commercial activity is also expected to have aided the Aerospace Systems segment’s performance in the to-be-reported quarter. The consensus mark for Aerospace revenues in the fiscal third quarter shows a 78.6% jump from the year-ago reported number.
PH’s unique Win Strategy, which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth, is expected to have supported its margin performance in the fiscal third quarter. Effective pricing actions are also likely to have aided margin performance.
However, the escalating cost of sales and selling, general and administrative expenses are likely to have dented Parker-Hannifin’s bottom line in the soon-to-be-reported quarter. The company’s realignment expenses also might have weighed on its bottom line.
Given PH’s substantial overseas business operations, foreign-exchange woes might have impacted its top-line performance.
Earnings Whispers
Our proven model suggests an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Parker-Hannifin has an Earnings ESP of +2.43% as the Most Accurate Estimate is pegged at $5.16, higher than the Zacks Consensus Estimate of $5.03. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Parker-Hannifin presently carries a Zacks Rank of 2.
Highlights of Q2 Earnings
Parker-Hannifin reported second-quarter fiscal 2023 adjusted earnings of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year. Total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year on a 10.3% increase in organic sales and a 3% rise in orders.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +3.06% and a Zacks Rank #2. The company is scheduled to release first-quarter 2023 results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zebra Technologies’ first-quarter earnings has been revised upward by 1% in the past 60 days. The stock has rallied around 21% in the past six months.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.
While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The stock has gained 13.4% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Parker-Hannifin Corporation (PH - Free Report) is slated to release third-quarter fiscal 2023 (ended Mar 31, 2023) results on May 4, before market open.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings has been revised upward by 1% in the past 60 days. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 9.1%.
Let’s see how things have shaped up for Parker-Hannifin’s fiscal third quarter.
Factors to Note
Steady demand across end markets and higher orders are expected to have buoyed Parker-Hannifin’s fiscal third-quarter performance.
Broad-based growth in the North American region is expected to have boosted revenues in the Diversified Industrial segment. The Zacks Consensus Estimate for Diversified Industrial North America revenues indicates an 8.2% rise from the year-ago reported number.
The Aerospace Systems segment is expected to generate significantly higher revenues on the back of the Meggitt acquisition (September 2022), which has expanded Parker-Hannifin’s presence in the UK, positioning it well to provide a broader suite of solutions for aircraft and aeroengine components and systems.
Robust original equipment manufacturer and Maintenance, Repair and Operations commercial activity is also expected to have aided the Aerospace Systems segment’s performance in the to-be-reported quarter. The consensus mark for Aerospace revenues in the fiscal third quarter shows a 78.6% jump from the year-ago reported number.
PH’s unique Win Strategy, which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth, is expected to have supported its margin performance in the fiscal third quarter. Effective pricing actions are also likely to have aided margin performance.
However, the escalating cost of sales and selling, general and administrative expenses are likely to have dented Parker-Hannifin’s bottom line in the soon-to-be-reported quarter. The company’s realignment expenses also might have weighed on its bottom line.
Given PH’s substantial overseas business operations, foreign-exchange woes might have impacted its top-line performance.
Earnings Whispers
Our proven model suggests an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Parker-Hannifin has an Earnings ESP of +2.43% as the Most Accurate Estimate is pegged at $5.16, higher than the Zacks Consensus Estimate of $5.03. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Parker-Hannifin presently carries a Zacks Rank of 2.
Highlights of Q2 Earnings
Parker-Hannifin reported second-quarter fiscal 2023 adjusted earnings of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year. Total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year on a 10.3% increase in organic sales and a 3% rise in orders.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +3.06% and a Zacks Rank #2. The company is scheduled to release first-quarter 2023 results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zebra Technologies’ first-quarter earnings has been revised upward by 1% in the past 60 days. The stock has rallied around 21% in the past six months.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.
While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The stock has gained 13.4% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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