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 impressive fourth-quarter fiscal 2021 (ended Jun 30, 2021) results. Its earnings surpassed estimates by 1.4%, whereas sales surpassed the same by 1%.
Its adjusted earnings were $4.38 per share in the quarter, surpassing the Zacks Consensus Estimate of $4.32. Also, earnings increased 46% from the year-ago quarter’s $2.99 per share on sales and margin improvement.
In fiscal 2021, the company’s adjusted earnings were $15.04 per share, up from $12.44 per share a year ago.
Revenue Details
In the quarter under review, the company’s net sales were $3,958.9 million, reflecting 25% year-over-year growth. Organic sales in the quarter increased 22%. Orders were up 43% in the quarter. Also, the company’s top line surpassed the Zacks Consensus Estimate of $3,919 million.
In fiscal 2021, its net sales were $14,347.6 million, up 4.8% year over year.
Parker-Hannifin reports revenues under two segments. A brief discussion on the quarterly results is provided below:
The Diversified Industrial segment’s revenues totaled $3,328.9 million, representing 84.1% of net revenues in the quarter under review. On a year-over-year basis, the segment’s revenues increased 31.2%.
The segment’s revenues generated in North America totaled $1,823.1 million, increasing 26.6% year over year. The segment’s International revenues were $1,505.8 million, up 37.3%. Orders in the quarter increased 56% year over year for Diversified Industrial North America and that for Diversified Industrial International grew 58%.
The Aerospace Systems segment generated revenues of $630 million, accounting for 15.9% of net revenues in the reported quarter. Sales increased 1% year over year. Orders in the quarter decreased 7%.
Margin Profile
In the reported quarter, the company’s cost of sales increased 19.7% year over year to $2,832.3 million. It represented 71.5% of the quarter’s net sales versus 74.8% in the year-ago quarter. Selling, general and administrative expenses increased 17.3% to $414 million. It represented 10.5% of net sales in the reported quarter versus 11.2% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter increased 37.4% year over year to $876.5 million. Adjusted EBITDA margin expanded 190 bps to 22.1%. Interest expenses in the quarter decreased 19.1% to $60.3 million.
Balance Sheet & Cash Flow
Exiting the fourth quarter of fiscal 2021, Parker-Hannifin had cash and cash equivalents of $733.1 million, up 49.6% from $489.6 million recorded in the last reported quarter. Long-term debt was up 0.2% sequentially to $6,582.1 million.
In fiscal 2021, the company repaid $1,934 million of debts.
In fiscal 2021, it generated net cash of $2,575 million from operating activities, reflecting growth of 24.3% from the year-ago period. Capital spending totaled $210 million versus $232.6 million a year ago.
During fiscal 2021, the company paid out cash dividends of $475.2 million, up 4.7% from fiscal 2020.
Outlook
For fiscal 2022 (ending June 2022), the company anticipates adjusted earnings per share of $16.20-$17.00. Organic sales for the fiscal year are anticipated to grow 5-9% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Image: Bigstock
Parker-Hannifin (PH) Q4 Earnings & Revenues Beat Estimates
Parker-Hannifin Corporation (PH - Free Report) has reported impressive fourth-quarter fiscal 2021 (ended Jun 30, 2021) results. Its earnings surpassed estimates by 1.4%, whereas sales surpassed the same by 1%.
Its adjusted earnings were $4.38 per share in the quarter, surpassing the Zacks Consensus Estimate of $4.32. Also, earnings increased 46% from the year-ago quarter’s $2.99 per share on sales and margin improvement.
In fiscal 2021, the company’s adjusted earnings were $15.04 per share, up from $12.44 per share a year ago.
Revenue Details
In the quarter under review, the company’s net sales were $3,958.9 million, reflecting 25% year-over-year growth. Organic sales in the quarter increased 22%. Orders were up 43% in the quarter. Also, the company’s top line surpassed the Zacks Consensus Estimate of $3,919 million.
In fiscal 2021, its net sales were $14,347.6 million, up 4.8% year over year.
Parker-Hannifin reports revenues under two segments. A brief discussion on the quarterly results is provided below:
The Diversified Industrial segment’s revenues totaled $3,328.9 million, representing 84.1% of net revenues in the quarter under review. On a year-over-year basis, the segment’s revenues increased 31.2%.
The segment’s revenues generated in North America totaled $1,823.1 million, increasing 26.6% year over year. The segment’s International revenues were $1,505.8 million, up 37.3%. Orders in the quarter increased 56% year over year for Diversified Industrial North America and that for Diversified Industrial International grew 58%.
The Aerospace Systems segment generated revenues of $630 million, accounting for 15.9% of net revenues in the reported quarter. Sales increased 1% year over year. Orders in the quarter decreased 7%.
Margin Profile
In the reported quarter, the company’s cost of sales increased 19.7% year over year to $2,832.3 million. It represented 71.5% of the quarter’s net sales versus 74.8% in the year-ago quarter. Selling, general and administrative expenses increased 17.3% to $414 million. It represented 10.5% of net sales in the reported quarter versus 11.2% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter increased 37.4% year over year to $876.5 million. Adjusted EBITDA margin expanded 190 bps to 22.1%. Interest expenses in the quarter decreased 19.1% to $60.3 million.
Balance Sheet & Cash Flow
Exiting the fourth quarter of fiscal 2021, Parker-Hannifin had cash and cash equivalents of $733.1 million, up 49.6% from $489.6 million recorded in the last reported quarter. Long-term debt was up 0.2% sequentially to $6,582.1 million.
In fiscal 2021, the company repaid $1,934 million of debts.
In fiscal 2021, it generated net cash of $2,575 million from operating activities, reflecting growth of 24.3% from the year-ago period. Capital spending totaled $210 million versus $232.6 million a year ago.
During fiscal 2021, the company paid out cash dividends of $475.2 million, up 4.7% from fiscal 2020.
Outlook
For fiscal 2022 (ending June 2022), the company anticipates adjusted earnings per share of $16.20-$17.00. Organic sales for the fiscal year are anticipated to grow 5-9% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are AZZ Inc. (AZZ - Free Report) , Brady Corporation (BRC - Free Report) and Eaton Corporation plc (ETN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AZZ delivered an earnings surprise of 21.24%, on average, in the trailing four quarters.
Brady delivered an earnings surprise of 1.58%, on average, in the trailing four quarters.
Eaton delivered an earnings surprise of 10.87%, on average, in the trailing four quarters.