Parker Hannifin Corp Earnings: Powering Ahead

S&P 500 (NYSE:SPY) component Parker Hannifin Corporation (NYSE:PH) reported its results for the second quarter. Parker Hannifin manufactures motion and control technologies and systems, including electromechanical controls, fluid power systems, and related components.

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Parker Hannifin Earnings Cheat Sheet for the Second Quarter.

Results: Net income for the industrial equipment and components company rose to $240.8 million ($1.56 per share) vs. $230.2 million ($1.39 per share) in the same quarter a year earlier. This marks a rise of 4.6% from the year earlier quarter.

Revenue: Rose 8.4% to $3.11 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PH fell short of the mean analyst estimate of $1.63 per share. Analysts were expecting revenue of $3.09 billion.

Quoting Management: “We are pleased to deliver strong organic growth and second quarter record sales, net income and earnings,” said Chairman, CEO and President, Don Washkewicz. “We generated eight percent sales growth in the quarter, substantially all of which was organic, led by double-digit revenue growth in our Industrial North America business segment. Internationally, we are seeing some softening in business conditions consistent with global macro-economic indicators, which moderated our year over year revenue growth and affected segment operating margin performance. However, strong operating margin performance in the Industrial North America segment contributed to an overall increase in total segment operating margins, which reached 14.2 percent for the quarter and exceeded 15 percent year to date.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 20.2% and in the fourth quarter of the last fiscal year, the figure rose 31.5%.

Revenue has risen the past four quarters. Revenue increased 14.3% to $3.23 billion in the first quarter. The figure rose 22.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 23.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.91 versus a mean estimate of net income of $1.70 per share.

The company’s cost of sales rose 8.5% from a year earlier. Last quarter, cost of sales was 76.6% of revenue, similar to a year earlier.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the third quarter is $1.94 per share, up from $1.92 ninety days ago. For the fiscal year, the average estimate has moved up from $7.44 a share to $7.47 over the last ninety days.

Competitors to Watch: Actuant Corporation (NYSE:ATU), Crane Co. (NYSE:CR), Sun Hydraulics Corporation (NASDAQ:SNHY), Omega Flex, Inc. (NASDAQ:OFLX), IMI plc (IMI), and Eaton Corporation (NYSE:ETN).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com