Parker-Hannifin Corporation’s(PH - Free Report) business unit, Parker Aerospace, recently announced that its Gas Turbine Fuel Systems PowerGen Division has received a contract from Vericor Power Systems. As noted, the Gas Turbine Fuel Systems PowerGen Division will provide fuel atomization nozzle and dual fuel manifold assembly for Vericor’s TF50F oil field gas turbine.
Designed with the help of additive manufacturing and electron-beam manufacturing process, the fuel nozzle and manifold assembly will improve fuel atomization and distribution within engine’s combustion chamber. This will boost the combustion performance of Vericor’s oil field gas turbine, resulting in enhanced fuel efficiency capability with reduced emissions. Notably, the use of additive manufacturing process enables Parker Hannifin to produce the TF50F fuel nozzle with the help of reduced parts compared with conventional nozzles.
Leveraging the company’s automated electron-beam welding capabilities, the new dual fuel manifold design boosts manufacturability of the manifold assembly. Notably, Parker-Hannifin is currently working on the manufacturing process, with delivery of the new fuel nozzles expected by early third quarter of calendar year 2019.
Strength in industrial end markets like material handling, construction and refrigeration is expected to bolster Parker-Hannifin's revenues in the quarters ahead. Moreover, benefits of its unique Win Strategy and ongoing investments are likely to support revenue growth.
Also, Parker-Hannifin intends to finance new growth-based investments, acquire businesses and boost shareholders’ remuneration with increased liquidity. The company stated that the integration process of its CLARCOR acquisition (completed in March 2017) is well on track. It noted that this buyout will likely bring in synergy savings worth $125 million in fiscal 2019 (ended June 2019) and roughly $160 million in fiscal 2020 (ended June 2020).
However, the company's extensive geographic presence exposes it to several political, economic and environmental headwinds. As a matter of fact, in fiscal 2019, adverse foreign currency translation impact is likely to affect the company's top line by 2.1%.
In the past month, this Zacks Rank #3 (Hold) company has gained 0.7% compared with industry’s increase of 1.7%.
Stocks to Consider
Some better-ranked stocks from the same space are Chart Industries, Inc. (GTLS - Free Report) , Roper Technologies, Inc. (ROP - Free Report) and Dover Corporation (DOV - Free Report) . While Chart Industries and Roper sport a Zacks Rank #1 (Strong Buy), Dover carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chart Industries pulled off average positive earnings surprise of 16.56% in the trailing four quarters.
Roper delivered average earnings surprise of 8.43% in the trailing four quarters.
Dover delivered average earnings surprise of 8.61% in the trailing four quarters.
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