Parker-Hannifin First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Parker-Hannifin (NYSE:PH) will unveil its latest earnings on Friday, October 19, 2012. Parker Hannifin manufactures motion and control technologies and systems, including electromechanical controls, fluid power systems, and related components.

Parker-Hannifin Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.74 per share, a decline of 8.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.96. Between one and three months ago, the average estimate moved down. It also has dropped from $1.75 during the last month. For the year, analysts are projecting net income of $7.52 per share, a rise of 0.9% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of $1.96 per share against a mean estimate of net income of $1.91, and the quarter before, the company exceeded forecasts by 29 cents with profit of $2.01 versus a mean estimate of net income of $1.72.

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Stock Price Performance: Between September 17, 2012 and October 15, 2012, the stock price dropped $4.25 (-5%), from $84.92 to $80.67. It saw one of its worst periods between August 17, 2012 and August 30, 2012 when shares fell for 10 straight days, dropping 5.4% (-$4.54) over that span. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 4.9% (+$4.16) over that span.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 3.3% to $302 million ($1.96 a share) from $292.2 million ($1.79 a share) the year earlier, exceeding analyst expectations. Revenue was unchanged at $3.41 billion.

Analyst Ratings: With five analysts rating the stock as a buy, one rating it as a sell and five rating it as a hold, there are indications of a bullish outlook.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 4.6% in the second quarter of the last fiscal year and 11.6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.3% in the first quarter of the last fiscal year, 8.4% in the second quarter of the last fiscal year and 4.7% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.81 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Wall St. Revenue Expectations: Analysts are projecting no change in revenue from the year-earlier quarter to $3.23 billion.

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

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