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 Corporation (PH - Free Report) reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Segmental Details
The Diversified Industrial segment’s revenues totaled $3,538.38 million, representing 75.7% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 10.4%.
Revenues generated in North America totaled $2,140.69 million, up 18.5% year over year. International revenues were $1,397.70 million, nearly flat year over year. Orders for Diversified Industrial North America grew 2%, while Diversified Industrial International decreased 4% year over year.
The Aerospace Systems segment generated revenues of $1,136.43 million, which accounted for 24.3% of net revenues for the reported quarter. Sales jumped 84% year over year. Orders for the quarter increased 22% on a rolling 12-month average basis.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
For the reported quarter, Parker-Hannifin’s cost of sales rose 26.1% year over year to $3,236.81 million. Selling, general and administrative expenses increased 39.1% from the prior year to $814.97 million.
Adjusted total segment operating income increased 21.8% year over year to $1 billion. Adjusted total segment operating margin dipped 10 basis points year over year to 21.5%. Interest expenses for the quarter soared more than 100% year over year to $146.93 million.
Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Parker-Hannifin had cash and cash equivalents of $756.06 million compared with $449.48 million in the year-ago period. Long-term debt was $12.03 billion compared with $6.25 billion at the end of the year-ago period.
In the first six months of fiscal 2023, PH generated net cash of $1.08 billion from operating activities compared with $1 billion at the end of the year-ago quarter. Capital spending totaled $185.7 million in the first six months of fiscal 2023 compared with $105.61 million in the year-ago period.
In the first six months of fiscal 2023, Parker-Hannifin paid out cash dividends of $342.36 million, up 28.9% from the year-ago period.
Fiscal 2023 Outlook
Parker-Hannifin expects fiscal 2023 organic sales growth of 6-8%. Adjusted earnings are estimated to be $19.20-$19.70. The Zacks Consensus Estimate for the same stands at $19.12.
Zacks Rank & Key Picks
Parker-Hannifin currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
The Zacks Consensus Estimate for Allegion’s fourth-quarter earnings has been revised downward by 2.8% in the past 60 days. The stock has gained 16.9% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI delivered a trailing four-quarter earnings surprise of 12.5%, on average.
The Zacks Consensus Estimate for Valmont’s fourth-quarter earnings estimate has been revised upward by a penny in the past 60 days. The stock has rallied 22.9% in the past six months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Parker-Hannifin (PH) Q2 Earnings Beat, Revenues Rise 22% Y/Y
Parker-Hannifin Corporation (PH - Free Report) reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Segmental Details
The Diversified Industrial segment’s revenues totaled $3,538.38 million, representing 75.7% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 10.4%.
Revenues generated in North America totaled $2,140.69 million, up 18.5% year over year. International revenues were $1,397.70 million, nearly flat year over year. Orders for Diversified Industrial North America grew 2%, while Diversified Industrial International decreased 4% year over year.
The Aerospace Systems segment generated revenues of $1,136.43 million, which accounted for 24.3% of net revenues for the reported quarter. Sales jumped 84% year over year. Orders for the quarter increased 22% on a rolling 12-month average basis.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
Margin Profile
For the reported quarter, Parker-Hannifin’s cost of sales rose 26.1% year over year to $3,236.81 million. Selling, general and administrative expenses increased 39.1% from the prior year to $814.97 million.
Adjusted total segment operating income increased 21.8% year over year to $1 billion. Adjusted total segment operating margin dipped 10 basis points year over year to 21.5%. Interest expenses for the quarter soared more than 100% year over year to $146.93 million.
Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Parker-Hannifin had cash and cash equivalents of $756.06 million compared with $449.48 million in the year-ago period. Long-term debt was $12.03 billion compared with $6.25 billion at the end of the year-ago period.
In the first six months of fiscal 2023, PH generated net cash of $1.08 billion from operating activities compared with $1 billion at the end of the year-ago quarter. Capital spending totaled $185.7 million in the first six months of fiscal 2023 compared with $105.61 million in the year-ago period.
In the first six months of fiscal 2023, Parker-Hannifin paid out cash dividends of $342.36 million, up 28.9% from the year-ago period.
Fiscal 2023 Outlook
Parker-Hannifin expects fiscal 2023 organic sales growth of 6-8%. Adjusted earnings are estimated to be $19.20-$19.70. The Zacks Consensus Estimate for the same stands at $19.12.
Zacks Rank & Key Picks
Parker-Hannifin currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank #2 (Buy). ALLE pulled off a trailing four-quarter earnings surprise of 8.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
The Zacks Consensus Estimate for Allegion’s fourth-quarter earnings has been revised downward by 2.8% in the past 60 days. The stock has gained 16.9% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI delivered a trailing four-quarter earnings surprise of 12.5%, on average.
The Zacks Consensus Estimate for Valmont’s fourth-quarter earnings estimate has been revised upward by a penny in the past 60 days. The stock has rallied 22.9% in the past six months.