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Parker-Hannifin (PH) to Post Q3 Earnings: Is a Beat in Store?
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Parker-Hannifin Corporation (PH - Free Report) is slated to release third-quarter fiscal 2024 (ended Mar 31, 2024) results on May 2, before market open.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 14.4%.
Let’s see how things have shaped up for Parker-Hannifin’s fiscal third-quarter earnings.
Factors to Note
PH’s Diversified Industrial segment is expected to have benefited from higher demand for its products across the aerospace, oil and gas, agriculture and marine end markets in the North American region. Strength in semiconductor, engine and forestry end markets within the international region was an added positive. However, softness across the engine, refrigeration, cars and light truck, and turf markets in the North American region was concerning. Lower demand in the construction equipment, industrial machinery and agriculture markets in Europe are expected to hurt its results.
The Zacks Consensus Estimate for net sales in the Diversified Industrial North America segment is pegged at $2,298 million, indicating a 1.9% decrease from the year-ago reported figure. The consensus estimate for the Diversified Industrial International segment is pinned at $1,475 million, suggesting a 3.3% decline from the year-ago levels.
Solid momentum in the commercial aftermarket business is expected to have buoyed the Aerospace Systems segment’s revenues in the to-be-reported quarter. The acquisition of Meggitt plc in September 2022 strengthened the segment, expanding its presence in the U.K. The Zacks Consensus Estimate for segmental revenues is pegged at $1,310 million, suggesting a 9.6% jump from the year-ago reported number.
Benefits from the Win Strategy, which focuses on innovation, strategic positioning and pricing actions, are expected to have aided PH’s margins in the quarter under discussion. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.1 billion, indicating growth of 0.3% from the prior-year actuals. The consensus estimate for earnings is pegged at $6.10, suggesting growth of 2.9% from the year-earlier actuals.
However, escalating operating costs and expenses, owing to an increase in input cost and high amortization expenses are likely to have impacted Parker-Hannifin’s margin performance in the fiscal third quarter. Also, given the company’s substantial international operations, foreign currency headwinds might have marred its margins and profitability.
Parker-Hannifin Corporation Price and EPS Surprise
Our proven model suggests an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Parker-Hannifin has an Earnings ESP of +1.35% as the Most Accurate Estimate is pegged at $6.18, higher than the Zacks Consensus Estimate of $6.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Parker-Hannifin presently carries a Zacks Rank #3.
Other Stocks to Consider
Here are a few other companies that, according to our model, have the right combination to beat on earnings this reporting cycle.
Atmus Filtration Technologies Inc. (ATMU - Free Report) has an Earnings ESP of +0.57% and sports a Zacks Rank #1. It is slated to release first-quarter results on May 3. ATMU delivered a trailing four-quarter earnings surprise of 20.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingersoll Rand (IR - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank of 2. It is slated to release first-quarter results on May 2. IR delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Axon Enterprise (AXON - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #2. It is slated to release first-quarter 2024 results on May 6. AXON delivered a trailing four-quarter earnings surprise of 58.7%, on average.
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Parker-Hannifin (PH) to Post Q3 Earnings: Is a Beat in Store?
Parker-Hannifin Corporation (PH - Free Report) is slated to release third-quarter fiscal 2024 (ended Mar 31, 2024) results on May 2, before market open.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 14.4%.
Let’s see how things have shaped up for Parker-Hannifin’s fiscal third-quarter earnings.
Factors to Note
PH’s Diversified Industrial segment is expected to have benefited from higher demand for its products across the aerospace, oil and gas, agriculture and marine end markets in the North American region. Strength in semiconductor, engine and forestry end markets within the international region was an added positive. However, softness across the engine, refrigeration, cars and light truck, and turf markets in the North American region was concerning. Lower demand in the construction equipment, industrial machinery and agriculture markets in Europe are expected to hurt its results.
The Zacks Consensus Estimate for net sales in the Diversified Industrial North America segment is pegged at $2,298 million, indicating a 1.9% decrease from the year-ago reported figure. The consensus estimate for the Diversified Industrial International segment is pinned at $1,475 million, suggesting a 3.3% decline from the year-ago levels.
Solid momentum in the commercial aftermarket business is expected to have buoyed the Aerospace Systems segment’s revenues in the to-be-reported quarter. The acquisition of Meggitt plc in September 2022 strengthened the segment, expanding its presence in the U.K. The Zacks Consensus Estimate for segmental revenues is pegged at $1,310 million, suggesting a 9.6% jump from the year-ago reported number.
Benefits from the Win Strategy, which focuses on innovation, strategic positioning and pricing actions, are expected to have aided PH’s margins in the quarter under discussion. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.1 billion, indicating growth of 0.3% from the prior-year actuals. The consensus estimate for earnings is pegged at $6.10, suggesting growth of 2.9% from the year-earlier actuals.
However, escalating operating costs and expenses, owing to an increase in input cost and high amortization expenses are likely to have impacted Parker-Hannifin’s margin performance in the fiscal third quarter. Also, given the company’s substantial international operations, foreign currency headwinds might have marred its margins and profitability.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation Quote
Earnings Whispers
Our proven model suggests an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Parker-Hannifin has an Earnings ESP of +1.35% as the Most Accurate Estimate is pegged at $6.18, higher than the Zacks Consensus Estimate of $6.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Parker-Hannifin presently carries a Zacks Rank #3.
Other Stocks to Consider
Here are a few other companies that, according to our model, have the right combination to beat on earnings this reporting cycle.
Atmus Filtration Technologies Inc. (ATMU - Free Report) has an Earnings ESP of +0.57% and sports a Zacks Rank #1. It is slated to release first-quarter results on May 3. ATMU delivered a trailing four-quarter earnings surprise of 20.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingersoll Rand (IR - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank of 2. It is slated to release first-quarter results on May 2. IR delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Axon Enterprise (AXON - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #2. It is slated to release first-quarter 2024 results on May 6. AXON delivered a trailing four-quarter earnings surprise of 58.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.