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Parker-Hannifin (PH) Q4 Earnings & Revenues Beat, Up Y/Y

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Parker-Hannifin Corporation PH reported fourth-quarter fiscal 2022 (ended Jun 30, 2022) adjusted earnings (excluding $4.17 from non-recurring items) of $51.6 per share, which beat the Zacks Consensus Estimate of $4.67. The bottom line improved approximately 18% year over year.

Total revenues of $4,187.8 million also outperformed the Zacks Consensus Estimate of $4,088.8 million. The top line increased 5.8% year over year. Organic sales for the quarter increased 10% year over year. Orders were up 3% year over year.

Segmental Details

The Diversified Industrial segment’s revenues totaled $3,511.62 million, representing 83.9% of net revenues for the quarter under review. On a year-over-year basis, the segment’s revenues increased 5.5%.

ParkerHannifin Corporation Price, Consensus and EPS Surprise

ParkerHannifin Corporation Price, Consensus and EPS Surprise
ParkerHannifin Corporation Price, Consensus and EPS Surprise

ParkerHannifin Corporation price-consensus-eps-surprise-chart | ParkerHannifin Corporation Quote


Revenues generated in North America totaled $2,087.70 million, up 14.5% year over year. International revenues were $1,423.92 million, down 5.4% from the prior-year quarter’s level. Orders for Diversified Industrial North America grew 10%, while Diversified Industrial International declined 4% year over year.

The Aerospace Systems segment generated revenues of $676.2 million, accounting for 16.1% of net revenues for the reported quarter. Sales increased 7% year over year. Orders for the quarter were flat on a rolling 12-month average basis.

Margin Profile

For the reported quarter, Parker-Hannifin’s cost of sales increased 5.2% year over year to $2,980.65 million. Selling, general and administrative expenses increased 2.9% from the prior-year figure to $426.21 million.

Adjusted total segment operating income increased 9.1% year over year to $960.25 million. Total segment operating margin improved to 20.9% from 20% in the year-ago period. Interest expenses for the quarter increased 18.3% from the prior-year period’s number to $71.27 million.

Balance Sheet & Cash Flow

Exiting the fourth quarter of fiscal 2022, Parker-Hannifin had cash and cash equivalents of $535.80 million compared with $733.12 million in the year-ago period. Long-term debt was $9.76 billion compared with $6.58 billion at the end of the year-ago period.  

During fiscal 2022, PH generated net cash of $2.44 billion from operating activities compared with $2.58 billion at the end of fiscal 2021. Capital spending totaled $230.04 million in fiscal 2022 compared with $209.96 million a year ago.

During fiscal 2022, Parker-Hannifin paid out cash dividends of $569.86 million, up 19.9% from the year-ago period’s reading.

Outlook

Parker-Hannifin expects fiscal 2023 organic sales growth in the range of 2-5%. The company expects earnings per share in the band of $16.13-$16.93. Adjusted earnings per share are anticipated in the range of $18.10-$18.90. The Zacks Consensus Estimate for the same stands at $19.09.

Zacks Rank & Key Picks

Parker-Hannifin carries a Zacks Rank #3 (Hold).

Some better-ranked stocks within the broader Industrial Products sector are as follows:

Greif, Inc. GEF presently sports a Zacks Rank #1 (Strong Buy). GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Greif has an estimated earnings growth rate of 36.8% for the current year. Shares of the company have gained 22.7% in the past six months.

Titan International, Inc. TWI presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 47%, on average.

Titan International has an estimated earnings growth rate of 181.2% for the current year. Shares of the company have rallied 46.5% in the past six months.


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