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Parker-Hannifin Q1 Earnings Beat, Aerospace Systems Sales Up Y/Y
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Parker-Hannifin Corporation (PH - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings (excluding 86 cents from non-recurring items) of $6.20 per share, which beat the Zacks Consensus Estimate of $6.13. The bottom line jumped 4% year over year.
Total sales of $4.9 billion missed the consensus estimate of $4.91 billion. The top line increased 1.2% year over year. Strength across businesses and transformed portfolio drove the top line. Organic sales grew 1.4% year over year. Orders grew 1% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Segmental Details
The Diversified Industrial segment’s sales totaled $3.5 billion, representing 70.5% of total sales. On a year-over-year basis, the segment’s sales decreased 4.5%.
Sales from Diversified Industrial North America totaled $2.1 billion, down 5.8% year over year. The Zacks Consensus Estimate was pegged at $2.20 billion. Diversified International sales were $1.4 billion, down 2.4% year over year. The consensus mark was pegged at $1.34 billion.
Orders for Diversified Industrial North America declined 3% year over year, while Diversified Industrial International orders increased 1% on a year-over-year basis.
The Aerospace Systems segment generated sales of $1.4 billion, which accounted for 29.5% of total sales. Sales jumped 17.8% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.36 billion. Orders for the Aerospace Systems unit increased 7% on a year-over-year basis.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin’s cost of sales was $3.10 billion, flat year over year. Selling, general and administrative expenses decreased 2.9% from the prior year to $848.8 million.
Adjusted total segment operating income increased 4.5% year over year to $1.3 billion. Adjusted total segment operating margin increased 80 basis points year over year to 25.7%.
PH’s Balance Sheet & Cash Flow
Exiting the fiscal first quarter, Parker-Hannifin had cash and cash equivalents of $371.1 million compared with $422 million at the end of fiscal 2024. Long-term debt was $6.7 billion compared with $7.16 billion at the end of fiscal 2024.
In the first three months of fiscal 2025, Parker-Hannifin generated net cash of $744 million from operating activities compared with $650 million in the year-ago period.
Capital spending totaled $95.3 million in the first three months of the fiscal year compared with $97.7 million in the year-ago period.
Parker-Hannifin paid out cash dividends of $209.9 million, up 10.3% year over year.
PH’s Fiscal 2025 Guidance Issued
Parker-Hannifin has updated its fiscal 2025 guidance, which now includes divestiture activity (expected to be completed during the second quarter of fiscal 2025) in the Diversified Industrial North America segment. The company now expects total sales to increase in the band of 0.5-3.5% year over year compared with 1.5-4.5% anticipated before.
Organic sales are projected to increase in the range of 1.5-4.5% compared with 2-5% expected earlier. Its total segment operating margin is estimated to be 22.6% (25.7% on an adjusted basis).
Parker-Hannifin currently expects adjusted earnings to be in the band of $26.35-$27.05 per share ($22.78-$23.48 on a reported basis). The Zacks Consensus Estimate for adjusted earnings is pegged at $26.68 per share.
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.
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Parker-Hannifin Q1 Earnings Beat, Aerospace Systems Sales Up Y/Y
Parker-Hannifin Corporation (PH - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings (excluding 86 cents from non-recurring items) of $6.20 per share, which beat the Zacks Consensus Estimate of $6.13. The bottom line jumped 4% year over year.
Total sales of $4.9 billion missed the consensus estimate of $4.91 billion. The top line increased 1.2% year over year. Strength across businesses and transformed portfolio drove the top line. Organic sales grew 1.4% year over year. Orders grew 1% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Segmental Details
The Diversified Industrial segment’s sales totaled $3.5 billion, representing 70.5% of total sales. On a year-over-year basis, the segment’s sales decreased 4.5%.
Sales from Diversified Industrial North America totaled $2.1 billion, down 5.8% year over year. The Zacks Consensus Estimate was pegged at $2.20 billion. Diversified International sales were $1.4 billion, down 2.4% year over year. The consensus mark was pegged at $1.34 billion.
Orders for Diversified Industrial North America declined 3% year over year, while Diversified Industrial International orders increased 1% on a year-over-year basis.
The Aerospace Systems segment generated sales of $1.4 billion, which accounted for 29.5% of total sales. Sales jumped 17.8% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.36 billion. Orders for the Aerospace Systems unit increased 7% on a year-over-year basis.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
PH’s Margin Profile
Parker-Hannifin’s cost of sales was $3.10 billion, flat year over year. Selling, general and administrative expenses decreased 2.9% from the prior year to $848.8 million.
Adjusted total segment operating income increased 4.5% year over year to $1.3 billion. Adjusted total segment operating margin increased 80 basis points year over year to 25.7%.
PH’s Balance Sheet & Cash Flow
Exiting the fiscal first quarter, Parker-Hannifin had cash and cash equivalents of $371.1 million compared with $422 million at the end of fiscal 2024. Long-term debt was $6.7 billion compared with $7.16 billion at the end of fiscal 2024.
In the first three months of fiscal 2025, Parker-Hannifin generated net cash of $744 million from operating activities compared with $650 million in the year-ago period.
Capital spending totaled $95.3 million in the first three months of the fiscal year compared with $97.7 million in the year-ago period.
Parker-Hannifin paid out cash dividends of $209.9 million, up 10.3% year over year.
PH’s Fiscal 2025 Guidance Issued
Parker-Hannifin has updated its fiscal 2025 guidance, which now includes divestiture activity (expected to be completed during the second quarter of fiscal 2025) in the Diversified Industrial North America segment. The company now expects total sales to increase in the band of 0.5-3.5% year over year compared with 1.5-4.5% anticipated before.
Organic sales are projected to increase in the range of 1.5-4.5% compared with 2-5% expected earlier. Its total segment operating margin is estimated to be 22.6% (25.7% on an adjusted basis).
Parker-Hannifin currently expects adjusted earnings to be in the band of $26.35-$27.05 per share ($22.78-$23.48 on a reported basis). The Zacks Consensus Estimate for adjusted earnings is pegged at $26.68 per share.
PH’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.