Parker-Hannifin Corporation (PH - Free Report) reported mixed results for third-quarter fiscal 2019 (ended March 2019), wherein its earnings beat estimates but revenues lagged the same.
Earnings/ Revenues
Quarterly adjusted earnings came in at $3.17 per share, up 13.2% year over year from $2.80 per share. The bottom line also outpaced the Zacks Consensus Estimate of $3.01.
Revenues for the fiscal third quarter were $3,687.5 million, down 1.7% year over year. However, the figure improved 2% organically. Notably, the top line missed the consensus estimate of $3.71 billion.
Segmental Breakup
Revenues in the North American segment came in at $1,750.6 million, down 1% year over year.
The company’s International top-line performance depreciated 8% to $1,284.9 million in the reported quarter.
The Aerospace Systems segment generated revenues of $652.1 million, up 9% year over year.
Costs/Margins
Cost of sales in the fiscal third quarter was $2,766.7 million, down 1.9% year over year. Selling, general and administrative expenses were $360.9 million, down from $416.5 million incurred in the year-ago quarter. Adjusted operating margin was 17.2%, up 90 basis points.
Balance Sheet/Cash Flow
Exiting the fiscal third quarter, Parker-Hannifin had cash and cash equivalents of $1,098.7 million, up from $1,089.5 million recorded as of Mar 31, 2018. At the end of the reported quarter, long-term debt was $4,284.2 million compared with $4,818.6 million as of Mar 31, 2018.
In the first nine months of fiscal 2019, the company generated $1,092.6 million cash from operating activities, up from $901.2 million witnessed in the comparable period last fiscal year.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of its Win Strategy. This Zacks Rank #3 (Hold) company has revised its earnings view for fiscal 2019 from $11.35-$11.85 to $11.45-$11.75 per share. However, organic revenue growth is predicted to lie in the 2-3% range, lower than the prior view of 2-4%.
Stocks to Consider
Some better-ranked stocks in the space are iRobot Corporation (IRBT - Free Report) , Cintas Corporation (CTAS - Free Report) and Actuant Corporation . While iRobot sports a Zacks Rank #1 (Strong Buy), Cintas and Actuant carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
iRobot exceeded estimates in each of the trailing four quarters, the average beat being 94.52%.
Cintas surpassed estimates in each of the trailing four quarters, the average beat being 6.09%.
Actuant surpassed estimates in each of the trailing four quarters, the average beat being 11.01%.
Zacks' Top 10 Stocks for 2019
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Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Parker-Hannifin Corporation (PH - Free Report) reported mixed results for third-quarter fiscal 2019 (ended March 2019), wherein its earnings beat estimates but revenues lagged the same.
Earnings/ Revenues
Quarterly adjusted earnings came in at $3.17 per share, up 13.2% year over year from $2.80 per share. The bottom line also outpaced the Zacks Consensus Estimate of $3.01.
Revenues for the fiscal third quarter were $3,687.5 million, down 1.7% year over year. However, the figure improved 2% organically. Notably, the top line missed the consensus estimate of $3.71 billion.
Segmental Breakup
Revenues in the North American segment came in at $1,750.6 million, down 1% year over year.
The company’s International top-line performance depreciated 8% to $1,284.9 million in the reported quarter.
The Aerospace Systems segment generated revenues of $652.1 million, up 9% year over year.
Costs/Margins
Cost of sales in the fiscal third quarter was $2,766.7 million, down 1.9% year over year. Selling, general and administrative expenses were $360.9 million, down from $416.5 million incurred in the year-ago quarter. Adjusted operating margin was 17.2%, up 90 basis points.
Balance Sheet/Cash Flow
Exiting the fiscal third quarter, Parker-Hannifin had cash and cash equivalents of $1,098.7 million, up from $1,089.5 million recorded as of Mar 31, 2018. At the end of the reported quarter, long-term debt was $4,284.2 million compared with $4,818.6 million as of Mar 31, 2018.
In the first nine months of fiscal 2019, the company generated $1,092.6 million cash from operating activities, up from $901.2 million witnessed in the comparable period last fiscal year.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of its Win Strategy. This Zacks Rank #3 (Hold) company has revised its earnings view for fiscal 2019 from $11.35-$11.85 to $11.45-$11.75 per share. However, organic revenue growth is predicted to lie in the 2-3% range, lower than the prior view of 2-4%.
Stocks to Consider
Some better-ranked stocks in the space are iRobot Corporation (IRBT - Free Report) , Cintas Corporation (CTAS - Free Report) and Actuant Corporation . While iRobot sports a Zacks Rank #1 (Strong Buy), Cintas and Actuant carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
iRobot exceeded estimates in each of the trailing four quarters, the average beat being 94.52%.
Cintas surpassed estimates in each of the trailing four quarters, the average beat being 6.09%.
Actuant surpassed estimates in each of the trailing four quarters, the average beat being 11.01%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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