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Parker-Hannifin (PH) Q1 Earnings Top, Revenues Miss Estimates
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Parker-Hannifin Corporation (PH - Free Report) reported mixed results for first-quarter fiscal 2019 (ended September 2018).
Earnings/ Revenues
Quarterly adjusted earnings came in at $2.84 per share, up 26.8% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $2.51.
Revenues in the fiscal first quarter were $3,479.3 million, up 3.4% year over year. The revenue figure improved 6% year over year, organically, during the quarter. However, the top line fell short of the Zacks Consensus Estimate of $3,534 million.
Segmental Break-Up
Revenues in the North American segment in the fiscal first quarter came in at $1,681 million, up 5.4% year over year.
The company’s International top-line performance depreciated 0.4% to $1,233.8 million in the reported quarter.
Revenues in the Aerospace Systems segment came in at $564.5 million, up 6.3% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Cost of sales in the fiscal first quarter was $2,594.8 million, up 2.8% year over year. Selling, general and administrative expenses were $394.3 million, slightly down from $397 million incurred in the year-ago quarter. Adjusted operating margin in the fiscal first quarter was 17.2%, up 120 basis points (bps) year over year.
Balance Sheet/Cash Flow
Exiting the fiscal first quarter 2019, Parker-Hannifin had cash and cash equivalents of $952.1 million, up from $822.1 million recorded as of Jun 30, 2018. Long-term debt stood at $4,313.2 million, down from $4,318.6 million recorded at the end of fiscal 2018.
In the first three months of fiscal 2019, the company generated $159.4 million cash from operating activities, down from $238 million witnessed in the comparable period last year. Capital expenditures totaled $42.1 million, down 46.9% year over year.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of the company’s Win Strategy. Based on favorable market conditions, this Zacks Rank #3 (Hold) company has raised its earnings view for fiscal 2019 from $10.90-$11.50 to $11.10-$11.70 per share. Organic revenue growth is predicted to lie in the 2.5-5.3% range, higher than the prior view of 2.3-5.1%.
Atkore International Group Inc. (ATKR - Free Report) carries a Zacks Rank #2 (Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Currently, Rockwell Automation, Inc. (ROK - Free Report) also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 5.58% during the same time frame.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Parker-Hannifin (PH) Q1 Earnings Top, Revenues Miss Estimates
Parker-Hannifin Corporation (PH - Free Report) reported mixed results for first-quarter fiscal 2019 (ended September 2018).
Earnings/ Revenues
Quarterly adjusted earnings came in at $2.84 per share, up 26.8% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $2.51.
Revenues in the fiscal first quarter were $3,479.3 million, up 3.4% year over year. The revenue figure improved 6% year over year, organically, during the quarter. However, the top line fell short of the Zacks Consensus Estimate of $3,534 million.
Segmental Break-Up
Revenues in the North American segment in the fiscal first quarter came in at $1,681 million, up 5.4% year over year.
The company’s International top-line performance depreciated 0.4% to $1,233.8 million in the reported quarter.
Revenues in the Aerospace Systems segment came in at $564.5 million, up 6.3% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation Price, Consensus and EPS Surprise | Parker-Hannifin Corporation Quote
Costs/Margins
Cost of sales in the fiscal first quarter was $2,594.8 million, up 2.8% year over year. Selling, general and administrative expenses were $394.3 million, slightly down from $397 million incurred in the year-ago quarter. Adjusted operating margin in the fiscal first quarter was 17.2%, up 120 basis points (bps) year over year.
Balance Sheet/Cash Flow
Exiting the fiscal first quarter 2019, Parker-Hannifin had cash and cash equivalents of $952.1 million, up from $822.1 million recorded as of Jun 30, 2018. Long-term debt stood at $4,313.2 million, down from $4,318.6 million recorded at the end of fiscal 2018.
In the first three months of fiscal 2019, the company generated $159.4 million cash from operating activities, down from $238 million witnessed in the comparable period last year. Capital expenditures totaled $42.1 million, down 46.9% year over year.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of the company’s Win Strategy. Based on favorable market conditions, this Zacks Rank #3 (Hold) company has raised its earnings view for fiscal 2019 from $10.90-$11.50 to $11.10-$11.70 per share. Organic revenue growth is predicted to lie in the 2.5-5.3% range, higher than the prior view of 2.3-5.1%.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Donaldson Company, Inc. (DCI - Free Report) sports a Zacks Rank #1 (Strong Buy), currently. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore International Group Inc. (ATKR - Free Report) carries a Zacks Rank #2 (Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Currently, Rockwell Automation, Inc. (ROK - Free Report) also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 5.58% during the same time frame.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>