Parker-Hannifin Cracks Major Deals: Should You Hold? - Analyst Blog
Leading manufacturer of motion & control technologies and systems Parker-Hannifin Corporation’s PH business unit, Parker Aerospace, recently cracked major deals that are likely to encourage investors.
Aircraft Wheel & Brake Division Accomplishments
Parker Aerospace’s world-renowned Aircraft Wheel & Brake Division is set to provide a host of FAA TSO-approved equipments such as caliper style wheels, brakes and brake system hydraulics for leading aircrafts. Per the agreement, the company will provide the aforementioned equipments for Diamond Aircraft’s DA62, Discovery Aviation’s Model 201 and XL-2 and Piper Aircraft’s Meridian M600.
Parker-Hannifin will aid in the maintenance of the aircrafts as well as provide product-support and spare parts that are critical for ensuring a solid performance of the vehicles. Parker Aerospace Aircraft Wheel & Brake Division Avon facility will be in charge of manufacturing and testing the wheels, brakes and brake system hydraulics.
This accomplishment does not come as a surprise for Parker-Hannifin, who is a recognized industry leader in general aviation brake systems. Encouragingly, the company is known for having set the global industry standard for general aviation, business aircraft and helicopter wheels and brakes. Such a reputation follows the company’s use of advanced equipments like precision tooling, 3-D printing and carbon products which ensures highest-quality output compared with its peers.
Moreover, in order to enhance the commercial appeal, Parker-Hannifin has introduced its products in customizable colors. The wheels and brakes can be painted in colors that suit the aircraft livery. Management believes the customizable aspect of products lends them a sporty look, thereby setting them apart from competitors.
Long-Term Deals
On a separate note, Parker Aerospace has also inked multiple long-term agreements with Emirates Airline, Singapore Airlines and Tianjin Airlines to provide them with comprehensive integrated maintenance packages. These agreements are expected to strengthen the company’s customer base in China, Singapore and the Middle East. Moreover, these deals mirror the firm’s commitment toward its motto “global reach, local focus."
Bottom Line
Parker-Hannifin expects its aerospace division will continue to experience higher commercial OEM and military aftermarket business, thereby acting as a major growth driver in the future. Deployment of the company’s wheels and brakes in leading airlines is a huge accomplishment, which strengthens Parker-Hannifin’s market position. Armed with a solid range of innovative products and long-term deals, we believe this Zacks Rank #4 (Sell) stock is set to report improved earnings in the quarters ahead.
Better-ranked stocks in the sector include EnPro Industries, Inc. NPO, Kaman Corp. KAMN and Luxfer Holdings PLC LXFR. All three stocks carry a Zacks Rank #2 (Buy).
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