Parker-Hannifin Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Parker-Hannifin (NYSE:PH) will unveil its latest earnings tomorrow, Friday, January 18, 2013. 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 estimate of analysts is for profit of $1.13 per share, a decline of 27.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.57. Between one and three months ago, the average estimate moved down. It also has dropped from $1.17 during the last month. For the year, analysts are projecting net income of $6.39 per share, a decline of 14.2% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 16 cents, coming in at profit of $1.57 per share versus a mean estimate of net income of $1.73 per share. In the fourth quarter of the last fiscal year, the company beat estimates by 5 cents.

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A Look Back: In the first quarter, profit fell 19.3% to $239.7 million ($1.57 a share) from $297 million ($1.91 a share) the year earlier, missing analyst expectations. Revenue fell 0.6% to $3.21 billion from $3.23 billion.

Here’s how Parker-Hannifin Group traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

PH

Wall St. Revenue Expectations: On average, analysts predict $2.93 billion in revenue this quarter, a decline of 5.8% from the year-ago quarter. Analysts are forecasting total revenue of $12.92 billion for the year, a decline of 1.7% from last year’s revenue of $13.15 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:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 8.4% in the second quarter of the last fiscal year, 4.7% in the third quarter of the last fiscal year and 0.1%in the fourth quarter of the last fiscal year before dropping in the first quarter.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 4.6% in the second quarter of the last fiscal year, 11.6% in the third quarter of the last fiscal year and 3.3% in the fourth quarter of the last fiscal year before declining in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.77 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.

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