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Parker-Hannifin Corporation (PH - Free Report) reported fourth-quarter fiscal 2023 (ended Jun 30, 2023) adjusted earnings (excluding 64 cents from non-recurring items) of $6.08 per share, which beat the Zacks Consensus Estimate of $5.50. The bottom line jumped 17.8% year over year.
Total revenues of $5,095.9 million also outperformed the Zacks Consensus Estimate of $5,008.9 million. The top line jumped 21.7% year over year. Contribution from the Meggitt acquisition and operational improvement drove the company’s top line. Organic sales for the quarter increased 6% year over year. Orders were up 3% year over year.
Segmental Details
The Diversified Industrial segment’s revenues totaled $3,813.43 million, representing 74.8% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 8.6%.
Revenues generated in Diversified Industrial North America totaled $2,301.16 million, up 10% year over year. The Zacks Consensus Estimate for the same was $2,226.23 million. International revenues were $1,512.27 million, up 6% year over year. The consensus mark for Diversified International revenues was $1,428.91 million. Orders for Diversified Industrial North America and Diversified Industrial International declined 8% and 1% year over year, respectively.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
The Aerospace Systems segment generated revenues of $1,282.51 million, which accounted for 25.2% of net revenues for the reported quarter. Sales jumped 90% year over year, thanks to the contribution from Meggitt acquisition (September 2022). The Zacks Consensus Estimate for Aerospace revenues was $1,229.30 million. Orders for the Aerospace Systems unit increased 28% on a rolling 12-month average basis.
Margin Profile
For the reported quarter, Parker-Hannifin’s cost of sales rose 17.84% year over year to $3,262.86 million. Selling, general and administrative expenses increased 28.3% from the prior year to $834.94 million.
Adjusted total segment operating income increased 27.5% year over year to $1,224.11 million. Adjusted total segment operating margin increased110 basis points year over year to 24%. Interest expenses for the quarter surged more than 100% year over year to $157.18 million.
Balance Sheet & Cash Flow
Exiting the fiscal fourth quarter, Parker-Hannifin had cash and cash equivalents of $475.18 million compared with $535.80 million in the year-ago period. Long-term debt was $8.80 billion compared with $9.76 billion at the end of the year-ago period.
In fiscal 2023, PH generated net cash of $2.98 billion from operating activities compared with $2.44 billion at the end of the year-ago quarter. Capital spending totaled $380.75 million in fiscal 2023 compared with $230.04 million in the year-ago period.
In fiscal 2023, Parker-Hannifin paid out cash dividends of $704.05 million, up 23.5% from the year-ago period.
Fiscal 2024 Guidance
For fiscal 2024, Parker-Hannifin, carrying a Zacks Rank #2 (Buy), expects total sales to increase 3-6% year over year. Total adjusted segment operating margin is estimated to be 23-23.4%. Adjusted earnings per share are predicted to be in the band of $21.90-$22.90. The mid-point of the guided range — $22.40 — lies above the Zacks Consensus Estimate of $22.13. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Performance of Other Industrial Companies
A. O. Smith Corporation’s (AOS - Free Report) second-quarter 2023 adjusted earnings (excluding 3 cents from non-recurring items) of $1.01 per share surpassed the Zacks Consensus Estimate of adjusted earnings of 91 cents per share. The bottom line jumped 23.2% year over year.
A. O. Smith’s net sales of $960.8 million underperformed the consensus estimate of $971 million. The top line dipped 0.5% year over year.
Allegion plc’s (ALLE - Free Report) second-quarter 2023 adjusted earnings of $1.76 per share surpassed the Zacks Consensus Estimate of $1.69. The bottom line increased 28.5% year over year.
Allegion’s revenues of $912.5 million missed the Zacks Consensus Estimate of $927 million. However, the top line jumped 18% from the year-ago quarter.
IDEX Corporation’s (IEX - Free Report) second-quarter 2023 adjusted earnings of $2.18 per share surpassed the Zacks Consensus Estimate of adjusted earnings of $2.12 per share. On a year-over-year basis, the bottom line increased 7.9%.
IDEX’s net sales of $846.2 million underperformed the Zacks Consensus Estimate of $847 million. However, the top line increased 6.3% year over year. Organic sales in the quarter increased 3% year over year.
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Parker-Hannifin (PH) Q4 Earnings Beat, Increase 18% Y/Y
Parker-Hannifin Corporation (PH - Free Report) reported fourth-quarter fiscal 2023 (ended Jun 30, 2023) adjusted earnings (excluding 64 cents from non-recurring items) of $6.08 per share, which beat the Zacks Consensus Estimate of $5.50. The bottom line jumped 17.8% year over year.
Total revenues of $5,095.9 million also outperformed the Zacks Consensus Estimate of $5,008.9 million. The top line jumped 21.7% year over year. Contribution from the Meggitt acquisition and operational improvement drove the company’s top line. Organic sales for the quarter increased 6% year over year. Orders were up 3% year over year.
Segmental Details
The Diversified Industrial segment’s revenues totaled $3,813.43 million, representing 74.8% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 8.6%.
Revenues generated in Diversified Industrial North America totaled $2,301.16 million, up 10% year over year. The Zacks Consensus Estimate for the same was $2,226.23 million. International revenues were $1,512.27 million, up 6% year over year. The consensus mark for Diversified International revenues was $1,428.91 million. Orders for Diversified Industrial North America and Diversified Industrial International declined 8% and 1% year over year, respectively.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
The Aerospace Systems segment generated revenues of $1,282.51 million, which accounted for 25.2% of net revenues for the reported quarter. Sales jumped 90% year over year, thanks to the contribution from Meggitt acquisition (September 2022). The Zacks Consensus Estimate for Aerospace revenues was $1,229.30 million. Orders for the Aerospace Systems unit increased 28% on a rolling 12-month average basis.
Margin Profile
For the reported quarter, Parker-Hannifin’s cost of sales rose 17.84% year over year to $3,262.86 million. Selling, general and administrative expenses increased 28.3% from the prior year to $834.94 million.
Adjusted total segment operating income increased 27.5% year over year to $1,224.11 million. Adjusted total segment operating margin increased110 basis points year over year to 24%. Interest expenses for the quarter surged more than 100% year over year to $157.18 million.
Balance Sheet & Cash Flow
Exiting the fiscal fourth quarter, Parker-Hannifin had cash and cash equivalents of $475.18 million compared with $535.80 million in the year-ago period. Long-term debt was $8.80 billion compared with $9.76 billion at the end of the year-ago period.
In fiscal 2023, PH generated net cash of $2.98 billion from operating activities compared with $2.44 billion at the end of the year-ago quarter. Capital spending totaled $380.75 million in fiscal 2023 compared with $230.04 million in the year-ago period.
In fiscal 2023, Parker-Hannifin paid out cash dividends of $704.05 million, up 23.5% from the year-ago period.
Fiscal 2024 Guidance
For fiscal 2024, Parker-Hannifin, carrying a Zacks Rank #2 (Buy), expects total sales to increase 3-6% year over year. Total adjusted segment operating margin is estimated to be 23-23.4%. Adjusted earnings per share are predicted to be in the band of $21.90-$22.90. The mid-point of the guided range — $22.40 — lies above the Zacks Consensus Estimate of $22.13. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Performance of Other Industrial Companies
A. O. Smith Corporation’s (AOS - Free Report) second-quarter 2023 adjusted earnings (excluding 3 cents from non-recurring items) of $1.01 per share surpassed the Zacks Consensus Estimate of adjusted earnings of 91 cents per share. The bottom line jumped 23.2% year over year.
A. O. Smith’s net sales of $960.8 million underperformed the consensus estimate of $971 million. The top line dipped 0.5% year over year.
Allegion plc’s (ALLE - Free Report) second-quarter 2023 adjusted earnings of $1.76 per share surpassed the Zacks Consensus Estimate of $1.69. The bottom line increased 28.5% year over year.
Allegion’s revenues of $912.5 million missed the Zacks Consensus Estimate of $927 million. However, the top line jumped 18% from the year-ago quarter.
IDEX Corporation’s (IEX - Free Report) second-quarter 2023 adjusted earnings of $2.18 per share surpassed the Zacks Consensus Estimate of adjusted earnings of $2.12 per share. On a year-over-year basis, the bottom line increased 7.9%.
IDEX’s net sales of $846.2 million underperformed the Zacks Consensus Estimate of $847 million. However, the top line increased 6.3% year over year. Organic sales in the quarter increased 3% year over year.