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Parker-Hannifin (PH) Q1 Earnings & Revenues Top Estimates
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Parker-Hannifin Corporation (PH - Free Report) has reported impressive first-quarter fiscal 2022 (ended Sep 30, 2021) results. Its earnings surpassed estimates by 13.3% and sales beat the same by 3.1%.
Its adjusted earnings were $4.26 per share, surpassing the Zacks Consensus Estimate of $3.76. Also, earnings increased 38.8% from the year-ago quarter’s $3.07 per share on sales and margin improvement.
Revenue Details
In the quarter under review, the company’s net sales were $3,762.8 million, reflecting 16.5% year-over-year growth. Organic sales in the quarter increased 16%. Orders were up 26% in the quarter. Also, the company’s top line surpassed the Zacks Consensus Estimate of $3,648 million.
Parker-Hannifin reports revenues under two segments. A brief discussion on the quarterly results is provided below:
The Diversified Industrial segment’s revenues totaled $3,170.1 million, representing 84.2% of net revenues in the quarter under review. On a year-over-year basis, the segment’s revenues increased 19.3%.
The segment’s revenues generated in North America totaled $1,793.7 million, increasing 17.4% year over year. The segment’s International revenues were $1,376.4 million, up 21.9%. Orders in the quarter increased 32% year over year for Diversified Industrial North America and that for Diversified Industrial International grew 25%.
The Aerospace Systems segment generated revenues of $592.7 million, accounting for 15.8% of net revenues in the reported quarter. Sales increased 3.4% year over year. Orders in the quarter increased 16%.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
In the reported quarter, the company’s cost of sales increased 13.7% year over year to $2,713.9 million. It represented 72.1% of the quarter’s net sales compared with 73.9% in the year-ago quarter. Selling, general and administrative expenses increased 10.2% to $407.8 million. It represented 10.8% of net sales in the reported quarter compared with 11.5% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter increased 28.7% year over year to $833 million. Adjusted EBITDA margin expanded 210 bps to 22.1%. Interest expenses in the quarter decreased 10% to $59.4 million.
Balance Sheet & Cash Flow
Exiting the first quarter of fiscal 2022, Parker-Hannifin had cash and cash equivalents of $478.6 million, down 34.7% from $733.1 million recorded in the last reported quarter. Long-term debt was down 4.8% sequentially to $6,263.9 million.
In the first three months of fiscal 2022, the company repaid $595 million of debts.
In the first three months of fiscal 2022, it generated net cash of $424.4 million from operating activities, reflecting a decline of 42.4% from the year-ago period. Capital spending totaled $48.2 million compared with $42.1 million a year ago.
During first three months of fiscal 2022, the company paid out cash dividends of $132.9 million, up 17.1% from the year-ago period.
Outlook
For fiscal 2022 (ending June 2022), the company anticipates adjusted earnings per share of $16.95-$17.65 compared with $16.20-$17.00, guided earlier. Organic sales for the fiscal year are anticipated to grow 7-10% year over year compared with 5-9% previously estimated.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
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Parker-Hannifin (PH) Q1 Earnings & Revenues Top Estimates
Parker-Hannifin Corporation (PH - Free Report) has reported impressive first-quarter fiscal 2022 (ended Sep 30, 2021) results. Its earnings surpassed estimates by 13.3% and sales beat the same by 3.1%.
Its adjusted earnings were $4.26 per share, surpassing the Zacks Consensus Estimate of $3.76. Also, earnings increased 38.8% from the year-ago quarter’s $3.07 per share on sales and margin improvement.
Revenue Details
In the quarter under review, the company’s net sales were $3,762.8 million, reflecting 16.5% year-over-year growth. Organic sales in the quarter increased 16%. Orders were up 26% in the quarter. Also, the company’s top line surpassed the Zacks Consensus Estimate of $3,648 million.
Parker-Hannifin reports revenues under two segments. A brief discussion on the quarterly results is provided below:
The Diversified Industrial segment’s revenues totaled $3,170.1 million, representing 84.2% of net revenues in the quarter under review. On a year-over-year basis, the segment’s revenues increased 19.3%.
The segment’s revenues generated in North America totaled $1,793.7 million, increasing 17.4% year over year. The segment’s International revenues were $1,376.4 million, up 21.9%. Orders in the quarter increased 32% year over year for Diversified Industrial North America and that for Diversified Industrial International grew 25%.
The Aerospace Systems segment generated revenues of $592.7 million, accounting for 15.8% of net revenues in the reported quarter. Sales increased 3.4% year over year. Orders in the quarter increased 16%.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
Margin Profile
In the reported quarter, the company’s cost of sales increased 13.7% year over year to $2,713.9 million. It represented 72.1% of the quarter’s net sales compared with 73.9% in the year-ago quarter. Selling, general and administrative expenses increased 10.2% to $407.8 million. It represented 10.8% of net sales in the reported quarter compared with 11.5% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter increased 28.7% year over year to $833 million. Adjusted EBITDA margin expanded 210 bps to 22.1%. Interest expenses in the quarter decreased 10% to $59.4 million.
Balance Sheet & Cash Flow
Exiting the first quarter of fiscal 2022, Parker-Hannifin had cash and cash equivalents of $478.6 million, down 34.7% from $733.1 million recorded in the last reported quarter. Long-term debt was down 4.8% sequentially to $6,263.9 million.
In the first three months of fiscal 2022, the company repaid $595 million of debts.
In the first three months of fiscal 2022, it generated net cash of $424.4 million from operating activities, reflecting a decline of 42.4% from the year-ago period. Capital spending totaled $48.2 million compared with $42.1 million a year ago.
During first three months of fiscal 2022, the company paid out cash dividends of $132.9 million, up 17.1% from the year-ago period.
Outlook
For fiscal 2022 (ending June 2022), the company anticipates adjusted earnings per share of $16.95-$17.65 compared with $16.20-$17.00, guided earlier. Organic sales for the fiscal year are anticipated to grow 7-10% year over year compared with 5-9% previously estimated.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Industrial Products sector are A. O. Smith Corporation (AOS - Free Report) , AZZ Inc. (AZZ - Free Report) , and Applied Industrial Technologies, Inc. (AIT - Free Report) . While A. O. Smith currently sports a Zacks Rank #1 (Strong Buy), AZZ and Applied Industrial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A. O. Smith delivered an earnings surprise of 16.82%, on average, in the trailing four quarters.
AZZ delivered an earnings surprise of 25.47%, on average, in the trailing four quarters.
Applied Industrial delivered an earnings surprise of 26.71%, on average, in the trailing four quarters.