Parker Hannifin Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Parker Hannifin Corporation (NYSE:PH) reported higher profit for the fourth quarter as revenue showed growth. Parker Hannifin Corporation 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 Fourth Quarter

Results: Net income for the industrial equipment and components company rose to $292.2 million ($1.79 per share) vs. $222.2 million ($1.36 per share) in the same quarter a year earlier. This marks a rise of 31.5% from the year earlier quarter.

Revenue: Rose 22.4% to $3.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PH fell a bit short of analysts’ estimates, which were $1.80 per share. It beat the average revenue estimate of $3.34 billion.

Quoting Management: “Achieving record performance this year is a remarkable accomplishment,” said Chairman, CEO and President, Don Washkewicz. “I am especially proud of our global team that delivered this performance. We will continue the focus on executing Parker’s Win Strategy and build on this success.”

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 24.1%, 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% and in the second quarter, the figure rose more than twofold.

Gross margin shrank 0.1 percentage point to 24%. The contraction appeared to be driven by increased costs, which rose 22.5% from the year earlier quarter while revenue rose 22.4%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 14 cents, and in the second quarter, it was ahead by 9 cents.

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).

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(Source: Xignite Financials)