Parker Hannifin Corp Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Parker Hannifin Corp (NYSE:PH) will unveil its latest earnings on Tuesday, August 2, 2011. Parker Hannifin Corporation manufactures motion and control technologies and systems, including electromechanical controls, fluid power systems and related components.

Parker Hannifin Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.80 per share, a rise of 32.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.79. For the year, analysts are projecting profit of $6.37 per share, a rise of 87.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 14 cents, reporting net income of $1.68 per share against a mean estimate of profit of $1.54 per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.34 billion in revenue this quarter, a rise of 19.7% from the year ago quarter. Analysts are forecasting total revenue of $12.29 billion for the year, a rise of 23% from last year’s revenue of $9.99 billion.

Analyst Ratings: Analysts are bullish on Parker Hannifin as seven analysts rate it as a buy, none rate it as a sell and seven rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 24.5%, with the biggest boost coming in the first quarter when revenue rose 26.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 81.7% while it rose more than twofold in the second quarter and more than threefold in the first quarter.

The company boosted its gross margin by 2.9 percentage points in the in the third quarter. Revenue rose 23.9% while cost of sales rose 19.4% to $2.46 billion from a year earlier.

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

Stock Price Performance: During May 2, 2011 to July 27, 2011, the stock price had fallen $13 (-14%) from $92.93 to $79.93. The stock price saw one of its best stretches over the last year between March 15, 2011 and April 4, 2011 when shares rose for 15-straight days, rising 12.2% (+$10.45) over that span. It saw one of its worst periods between July 1, 2011 and July 12, 2011 when shares fell for seven-straight days, falling 5.9% (-$5.39) over that span. Shares are down $5.71 (-6.7%) year to date.

(Source: Xignite Financials)

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