Parker Hannifin Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Parker Hannifin Corporation (NYSE:PH) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for the industrial equipment and components company rose to $297 million ($1.91 per share) vs. $247.2 million ($1.51 per share) in the same quarter a year earlier. This marks a rise of 20.2% from the year earlier quarter.

Revenue: Rose 14.3% to $3.23 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PH beat the mean analyst estimate of $1.70 per share. Analysts were expecting revenue of $3.2 billion.

Quoting Management: “I am pleased we delivered a very strong first quarter performance as we target another record year for Parker,” said Chairman, CEO and President, Don Washkewicz. “Record first quarter sales were driven by strong organic sales growth of 10 percent, while foreign currency translation contributed three percent and acquisitions contributed one percent. I am particularly pleased that we generated an all-time quarterly record for total segment operating margins of 16.1 percent reflecting our focus on driving operational excellence across the organization. Segment operating margins were particularly strong in our North America Industrial segment at 18.5 percent, while our Aerospace segment demonstrated the strongest year-over-year improvement in operating margins.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.8%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 26.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 31.5% and in the third quarter of the last fiscal year, the figure rose 81.7%.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of $1.79 versus a mean estimate of net income of $1.80 per share.

Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margin rose 0.9 percentage point to 25.3% from the quarter earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.1 percentage point to 24% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from $1.64 per share to $1.59, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $7.46 a share to $7.04 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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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