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) reported impressive second-quarter fiscal 2022 (ended Dec 31, 2021) results. Its earnings and sales surpassed estimates by 15.8% and 3.1%, respectively.
Adjusted earnings were $4.46 per share, surpassing the Zacks Consensus Estimate of $3.85. Also, earnings increased 29.3% from the year-ago quarter’s $3.45 per share on sales and margin improvement.
Revenue Details
For the quarter under review, the company’s net sales were $3,824.6 million, reflecting 12.1% year-over-year growth. Organic sales for the quarter increased 13% year over year. Orders were up 12% year over year for the quarter. The top line surpassed the Zacks Consensus Estimate of $3,709 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 $3,206.2 million, representing 83.8% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 13.4%.
The segment’s revenues generated in North America totaled $1,807 million, increasing 15.3% year over year. The segment’s International revenues were $1,399.2 million, up 11.1% from the prior-year quarter. Orders for Diversified Industrial North America and Diversified Industrial International grew 17% and 14% year over year, respectively, for the quarter.
The Aerospace Systems segment generated revenues of $618.4 million, accounting for 16.2% of net revenues for the reported quarter. Sales increased 5.6% year over year. Orders for the quarter decreased 7% from the year-ago quarter.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
For the reported quarter, the company’s cost of sales increased 9.8% year over year to $2,764.7 million. It represented 72.3% of the quarter’s net sales compared with 73.8% in the year-ago quarter. Selling, general and administrative expenses increased 6.8% from the prior-year figure to $380.7 million. It represented 10% of net sales for the reported quarter compared with 10.5% in the year-ago period.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter increased 22% year over year to $868.8 million. Adjusted EBITDA margin expanded 180 bps to 22.7%. Interest expenses for the quarter decreased 2.5% from the prior-year period to $61.4 million.
Balance Sheet & Cash Flow
Exiting second-quarter fiscal 2022, Parker-Hannifin had cash and cash equivalents of $449.5 million, down 6.1% from $478.6 million recorded in the last reported quarter. Long-term debt was down 0.2% sequentially to $6,250.5 million.
For the first six months of fiscal 2022, the company’s net proceeds from debt were $1,900.8 million.
In the first six months of fiscal 2022, it generated net cash of $1,005.5 million from operating activities, reflecting a 25.7% decline from the year-ago period. Capital spending totaled $105.6 million compared with $92.9 million a year ago.
During the first six months of fiscal 2022, the company paid out cash dividends of $265.6 million, up 16.9% from the year-ago period.
Outlook
For fiscal 2022 (ending June 2022), PH updated its financial guidance. It currently anticipates adjusted earnings per share of $17.80-$18.30 compared with $16.95-$17.65, guided earlier. Organic sales for the fiscal year are anticipated to grow 10-12% year over year compared with 7-10% estimated previously.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the industry are discussed below.
Its earnings surprise in the last reported quarter was 16.82%, on average.
Ferguson’s earnings estimates increased 0.1% for fiscal 2022 (ending July 2022) and 0.6% for fiscal 2023 (ending July 2023) in the past 30 days. Its shares have gained 4.8% in the past three months.
Graco Inc. (GGG - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2.5%, on average.
In the past 30 days, Graco’s earnings estimates have increased 0.7% for 2022 but decreased 1.7% for 2022. GGG’s shares have lost 3.9% in the past three months.
Xometry, Inc. (XMTR - Free Report) presently carries a Zacks Rank #2. In the last reported quarter, its earnings missed the consensus estimate by 6.5%.
Xometry’s bottom-line estimates have increased 2.2% for 2021 (whose results await) and decreased 52.2% for 2022 in the past 30 days. Its shares have lost 15.6% in the past three months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Parker-Hannifin (PH) Q2 Earnings & Revenues Beat Estimates
Parker-Hannifin Corporation (PH - Free Report) reported impressive second-quarter fiscal 2022 (ended Dec 31, 2021) results. Its earnings and sales surpassed estimates by 15.8% and 3.1%, respectively.
Adjusted earnings were $4.46 per share, surpassing the Zacks Consensus Estimate of $3.85. Also, earnings increased 29.3% from the year-ago quarter’s $3.45 per share on sales and margin improvement.
Revenue Details
For the quarter under review, the company’s net sales were $3,824.6 million, reflecting 12.1% year-over-year growth. Organic sales for the quarter increased 13% year over year. Orders were up 12% year over year for the quarter. The top line surpassed the Zacks Consensus Estimate of $3,709 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 $3,206.2 million, representing 83.8% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 13.4%.
The segment’s revenues generated in North America totaled $1,807 million, increasing 15.3% year over year. The segment’s International revenues were $1,399.2 million, up 11.1% from the prior-year quarter. Orders for Diversified Industrial North America and Diversified Industrial International grew 17% and 14% year over year, respectively, for the quarter.
The Aerospace Systems segment generated revenues of $618.4 million, accounting for 16.2% of net revenues for the reported quarter. Sales increased 5.6% year over year. Orders for the quarter decreased 7% from the year-ago quarter.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
Margin Profile
For the reported quarter, the company’s cost of sales increased 9.8% year over year to $2,764.7 million. It represented 72.3% of the quarter’s net sales compared with 73.8% in the year-ago quarter. Selling, general and administrative expenses increased 6.8% from the prior-year figure to $380.7 million. It represented 10% of net sales for the reported quarter compared with 10.5% in the year-ago period.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter increased 22% year over year to $868.8 million. Adjusted EBITDA margin expanded 180 bps to 22.7%. Interest expenses for the quarter decreased 2.5% from the prior-year period to $61.4 million.
Balance Sheet & Cash Flow
Exiting second-quarter fiscal 2022, Parker-Hannifin had cash and cash equivalents of $449.5 million, down 6.1% from $478.6 million recorded in the last reported quarter. Long-term debt was down 0.2% sequentially to $6,250.5 million.
For the first six months of fiscal 2022, the company’s net proceeds from debt were $1,900.8 million.
In the first six months of fiscal 2022, it generated net cash of $1,005.5 million from operating activities, reflecting a 25.7% decline from the year-ago period. Capital spending totaled $105.6 million compared with $92.9 million a year ago.
During the first six months of fiscal 2022, the company paid out cash dividends of $265.6 million, up 16.9% from the year-ago period.
Outlook
For fiscal 2022 (ending June 2022), PH updated its financial guidance. It currently anticipates adjusted earnings per share of $17.80-$18.30 compared with $16.95-$17.65, guided earlier. Organic sales for the fiscal year are anticipated to grow 10-12% year over year compared with 7-10% estimated previously.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the industry are discussed below.
Ferguson plc (FERG - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Its earnings surprise in the last reported quarter was 16.82%, on average.
Ferguson’s earnings estimates increased 0.1% for fiscal 2022 (ending July 2022) and 0.6% for fiscal 2023 (ending July 2023) in the past 30 days. Its shares have gained 4.8% in the past three months.
Graco Inc. (GGG - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2.5%, on average.
In the past 30 days, Graco’s earnings estimates have increased 0.7% for 2022 but decreased 1.7% for 2022. GGG’s shares have lost 3.9% in the past three months.
Xometry, Inc. (XMTR - Free Report) presently carries a Zacks Rank #2. In the last reported quarter, its earnings missed the consensus estimate by 6.5%.
Xometry’s bottom-line estimates have increased 2.2% for 2021 (whose results await) and decreased 52.2% for 2022 in the past 30 days. Its shares have lost 15.6% in the past three months.