Industrial machinery company Parker-Hannifin (NYSE: PH) will be reporting earnings this Thursday morning. Here’s what to look for.
Parker-Hannifin beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $5.08 billion, up 3.7% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ organic revenue estimates.
Is Parker-Hannifin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Parker-Hannifin’s revenue to grow 6.8% year on year to $5.07 billion, a reversal from the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Parker-Hannifin has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Parker-Hannifin’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Graco delivered year-on-year revenue growth of 8.1%, meeting analysts’ expectations, and GE Aerospace reported revenues up 17.6%, topping estimates by 13.9%. Graco traded up 1% following the results while GE Aerospace was down 7.7%.
Read our full analysis of Graco’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 9.3% on average over the last month. Parker-Hannifin is up 4.1% during the same time and is heading into earnings with an average analyst price target of $965.74 (compared to the current share price of $927.34).
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