We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Parker-Hannifin Corporation (PH - Free Report) has reported better-than-expected first-quarter fiscal 2021 (ended Sep 30, 2020) earnings, with a beat of 34.1%. Also, its sales surpassed estimates by 8.7%.
The company’s adjusted earnings were $3.07 per share in the quarter, surpassing the Zacks Consensus Estimate of $2.29. However, earnings improved 11.2% from the year-ago quarter’s $2.76 per share.
Revenue Details
In the quarter, the company’s net sales were $3,230.5 million, reflecting a 3.1% year-over-year decline. Organic sales in the quarter declined 13% year over year. Orders were down 12% in the quarter.
Notably, the company’s top line surpassed the Zacks Consensus Estimate of $2,973 million.
Parker-Hannifin reports revenues under two segments. A brief discussion on the quarterly results is provided below:
The Diversified Industrial segment’s revenues totaled $2,657.4 million, representing 82.3% of net revenues in the quarter under review. On a year-over-year basis, the segment’s revenues decreased 1.7%.
It is worth mentioning that the segment’s revenues generated in North America totaled $1,528.1 million, decreasing 5.9% year over year. The segment’s International revenues were $1,129.3 million, up 4.7%. Orders in the quarter decreased 11% for Diversified Industrial North America and that for Diversified Industrial International fell 4%.
The Aerospace Systems segment generated revenues of $573.2 million, accounting for 17.7% of net revenues in the reported quarter. Sales fell 9.2% year over year. Orders in the quarter decreased 25%.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
In the reported quarter, the company’s cost of sales decreased 3.8% year over year to $2,384.3 million. It represented 73.8% of the quarter’s net sales versus 74.4% in the year-ago quarter. Selling, general and administrative expenses decreased 7.3% to $369.9 million. It represented 11.5% of net sales in the reported quarter versus 12% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter increased 1.7% year over year to $649.3 million. Adjusted EBITDA margin expanded 100 basis points to 20.1%. Interest expenses in the quarter decreased 5.7% to $66 million.
Balance Sheet & Cash Flow
Exiting first quarter of fiscal 2021, Parker-Hannifin had cash and cash equivalents of $742.4 million, up 8.3% from $685.5 million recorded in the last reported quarter. Long-term debt was down 7.8% sequentially to $7,057.7 million.
In first three months of fiscal 2021, the company generated net cash of $737.4 million from operating activities, reflecting growth of 64.2% from the year-ago period. Capital spending totaled $42.1 million compared with $50.3 million in the year-ago period.
In the fiscal first quarter, the company paid out cash dividends of $113.5 million, relatively flat on a year-over-year basis.
Outlook
Parker-Hannifin intends to boost near-term revenues and profitability on the back of its Win Strategy. For fiscal 2021 (ending June 2021), the company currently anticipates generating adjusted earnings of $11.70-$12.30 per share, higher than $9.80-$10.80 guided previously.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Kaman delivered a positive earnings surprise of 43.61%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
IDEX delivered a positive earnings surprise of 6.80%, on average, in the trailing four quarters.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Parker-Hannifin (PH) Q1 Earnings & Revenues Beat Estimates
Parker-Hannifin Corporation (PH - Free Report) has reported better-than-expected first-quarter fiscal 2021 (ended Sep 30, 2020) earnings, with a beat of 34.1%. Also, its sales surpassed estimates by 8.7%.
The company’s adjusted earnings were $3.07 per share in the quarter, surpassing the Zacks Consensus Estimate of $2.29. However, earnings improved 11.2% from the year-ago quarter’s $2.76 per share.
Revenue Details
In the quarter, the company’s net sales were $3,230.5 million, reflecting a 3.1% year-over-year decline. Organic sales in the quarter declined 13% year over year. Orders were down 12% in the quarter.
Notably, the company’s top line surpassed the Zacks Consensus Estimate of $2,973 million.
Parker-Hannifin reports revenues under two segments. A brief discussion on the quarterly results is provided below:
The Diversified Industrial segment’s revenues totaled $2,657.4 million, representing 82.3% of net revenues in the quarter under review. On a year-over-year basis, the segment’s revenues decreased 1.7%.
It is worth mentioning that the segment’s revenues generated in North America totaled $1,528.1 million, decreasing 5.9% year over year. The segment’s International revenues were $1,129.3 million, up 4.7%. Orders in the quarter decreased 11% for Diversified Industrial North America and that for Diversified Industrial International fell 4%.
The Aerospace Systems segment generated revenues of $573.2 million, accounting for 17.7% of net revenues in the reported quarter. Sales fell 9.2% year over year. Orders in the quarter decreased 25%.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
Margin Profile
In the reported quarter, the company’s cost of sales decreased 3.8% year over year to $2,384.3 million. It represented 73.8% of the quarter’s net sales versus 74.4% in the year-ago quarter. Selling, general and administrative expenses decreased 7.3% to $369.9 million. It represented 11.5% of net sales in the reported quarter versus 12% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter increased 1.7% year over year to $649.3 million. Adjusted EBITDA margin expanded 100 basis points to 20.1%. Interest expenses in the quarter decreased 5.7% to $66 million.
Balance Sheet & Cash Flow
Exiting first quarter of fiscal 2021, Parker-Hannifin had cash and cash equivalents of $742.4 million, up 8.3% from $685.5 million recorded in the last reported quarter. Long-term debt was down 7.8% sequentially to $7,057.7 million.
In first three months of fiscal 2021, the company generated net cash of $737.4 million from operating activities, reflecting growth of 64.2% from the year-ago period. Capital spending totaled $42.1 million compared with $50.3 million in the year-ago period.
In the fiscal first quarter, the company paid out cash dividends of $113.5 million, relatively flat on a year-over-year basis.
Outlook
Parker-Hannifin intends to boost near-term revenues and profitability on the back of its Win Strategy. For fiscal 2021 (ending June 2021), the company currently anticipates generating adjusted earnings of $11.70-$12.30 per share, higher than $9.80-$10.80 guided previously.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are Kaman Corporation (KAMN - Free Report) , Dover Corporation (DOV - Free Report) and IDEX Corporation (IEX - Free Report) . While Kaman sports a Zacks Rank #1 (Strong Buy), Dover and IDEX carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kaman delivered a positive earnings surprise of 43.61%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
IDEX delivered a positive earnings surprise of 6.80%, on average, in the trailing four quarters.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>