We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Parker-Hannifin (PH) to Post Q2 Earnings: What's in Store?
Read MoreHide Full Article
Parker-Hannifin Corporation (PH - Free Report) is slated to report second-quarter fiscal 2022 (ended December 2021) results on Feb 3, before the opening bell.
The company has a trailing four-quarter earnings surprise of 14.15%, on average. Parker-Hannifin’s first-quarter fiscal 2022 (ended September 2021) adjusted earnings of $4.26 per share outpaced the Zacks Consensus Estimate of $3.76 by 13.30%.
Image Source: Zacks Investment Research
In the past three months, shares of the company have gained 3.1% against the industry’s decline of 5.1%.
Factors to Note
Parker-Hannifin is likely to have gained from solid orders for its products in the industrial end market in the fiscal second quarter. Recovery in the company’s commercial aerospace end market may have contributed to its top line. However, supply-chain challenges and shortages of skilled labor might have weighed on its performance in the to-be-reported quarter.
The company’s acquisitions positively impacted its revenues in the fiscal first quarter. The trend is likely to have continued in the to-be-reported quarter as well, given the strength across its acquired businesses. It acquired Exotic Metals Forming Company and LORD Corporation in fiscal 2020 (ended June 2020). While the Exotic Metals acquisition has enhanced the company’s offerings within the aerospace end-market, the LORD buyout has boosted its offerings in the aerospace, defense and automotive space.
Parker-Hannifin has been witnessing escalating costs of sales and operating expenses over the past few quarters. In the fiscal first quarter, its cost of sales increased 13.7% year over year, while selling and administrative expenses jumped 10.2%. An increase in raw material costs and expenses associated with the company’s realignment program might have affected its profitability in the to-be-reported quarter. It is worth mentioning that the company’s realignment expenses hurt its adjusted earnings by 2 cents per share in the fiscal first quarter.
Given the company’s extensive regional presence, its operations are subject to risks like political, environmental, and foreign currency exchange rate fluctuations. A stronger U.S. dollar might have hurt the company's overseas business in the fiscal second quarter.
The Zacks Consensus Estimate for second-quarter fiscal 2022 revenues for the Aerospace segment is pegged at $612 million, suggesting growth of 4.6% from the year-ago reported figure and 3.2% on a sequential basis. The consensus mark for revenues for the North America operations of the Diversified Industrial segment stands at $1,731 million, indicating growth of 10.5% year over year but a decline of 3.5% from the quarter-ago reported number. The consensus mark of $1,351 million for International operations of the Diversified Industrial segment indicates a year-over-year increase of 7.2% but a decline of 1.8% sequentially.
The Zacks Consensus Estimate for the company’s fiscal second-quarter total revenues is currently pegged at $3,709 million, suggesting a decline of 1.4% from the quarter-ago figure. The consensus estimate for earnings of $3.85 suggests a decrease of 9.6% year over year.
What the Zacks Model Unveils
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Parker-Hannifin has an Earnings ESP of -2.24%, as the Most Accurate Estimate is pegged at $3.76, lower than the Zacks Consensus Estimate of $3.85.
Parker-Hannifin Corporation Price and EPS Surprise
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Key Picks
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have gained 9.6% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have appreciated 15.1% in the past three months.
Johnson Controls International plc (JCI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Johnson Controls’ earnings is pegged at 53 cents per share for first-quarter fiscal 2022 (ended December 2021). JCI’s shares have lost 1.3% in the past three months.
Image: Bigstock
Parker-Hannifin (PH) to Post Q2 Earnings: What's in Store?
Parker-Hannifin Corporation (PH - Free Report) is slated to report second-quarter fiscal 2022 (ended December 2021) results on Feb 3, before the opening bell.
The company has a trailing four-quarter earnings surprise of 14.15%, on average. Parker-Hannifin’s first-quarter fiscal 2022 (ended September 2021) adjusted earnings of $4.26 per share outpaced the Zacks Consensus Estimate of $3.76 by 13.30%.
In the past three months, shares of the company have gained 3.1% against the industry’s decline of 5.1%.
Factors to Note
Parker-Hannifin is likely to have gained from solid orders for its products in the industrial end market in the fiscal second quarter. Recovery in the company’s commercial aerospace end market may have contributed to its top line. However, supply-chain challenges and shortages of skilled labor might have weighed on its performance in the to-be-reported quarter.
The company’s acquisitions positively impacted its revenues in the fiscal first quarter. The trend is likely to have continued in the to-be-reported quarter as well, given the strength across its acquired businesses. It acquired Exotic Metals Forming Company and LORD Corporation in fiscal 2020 (ended June 2020). While the Exotic Metals acquisition has enhanced the company’s offerings within the aerospace end-market, the LORD buyout has boosted its offerings in the aerospace, defense and automotive space.
Parker-Hannifin has been witnessing escalating costs of sales and operating expenses over the past few quarters. In the fiscal first quarter, its cost of sales increased 13.7% year over year, while selling and administrative expenses jumped 10.2%. An increase in raw material costs and expenses associated with the company’s realignment program might have affected its profitability in the to-be-reported quarter. It is worth mentioning that the company’s realignment expenses hurt its adjusted earnings by 2 cents per share in the fiscal first quarter.
Given the company’s extensive regional presence, its operations are subject to risks like political, environmental, and foreign currency exchange rate fluctuations. A stronger U.S. dollar might have hurt the company's overseas business in the fiscal second quarter.
The Zacks Consensus Estimate for second-quarter fiscal 2022 revenues for the Aerospace segment is pegged at $612 million, suggesting growth of 4.6% from the year-ago reported figure and 3.2% on a sequential basis. The consensus mark for revenues for the North America operations of the Diversified Industrial segment stands at $1,731 million, indicating growth of 10.5% year over year but a decline of 3.5% from the quarter-ago reported number. The consensus mark of $1,351 million for International operations of the Diversified Industrial segment indicates a year-over-year increase of 7.2% but a decline of 1.8% sequentially.
The Zacks Consensus Estimate for the company’s fiscal second-quarter total revenues is currently pegged at $3,709 million, suggesting a decline of 1.4% from the quarter-ago figure. The consensus estimate for earnings of $3.85 suggests a decrease of 9.6% year over year.
What the Zacks Model Unveils
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Parker-Hannifin has an Earnings ESP of -2.24%, as the Most Accurate Estimate is pegged at $3.76, lower than the Zacks Consensus Estimate of $3.85.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation Quote
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Key Picks
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Expedia Group, Inc. (EXPE - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have gained 9.6% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have appreciated 15.1% in the past three months.
Johnson Controls International plc (JCI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Johnson Controls’ earnings is pegged at 53 cents per share for first-quarter fiscal 2022 (ended December 2021). JCI’s shares have lost 1.3% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.