Parker-Hannifin (PH) to Sell Aircraft Wheel & Brake Unit
Parker-Hannifin Corporation PH decided to divest its Aircraft Wheel and Brake Business to Kaman Corporation KAMN. The deal is valued at $440 million and subject to certain customary conditions and approvals.
Shares of PH grew 1.1% yesterday (Monday May 23) to eventually close the trading session at $261.63.
Based in Bloomfield, CT, Kaman is engaged in offering components and materials to the industrial, medical, aerospace and defense markets. Some of the products manufactured by Kaman include spring energized seals, springs and contacts, miniature ball bearings, and others.
Inside the Headlines
Parker-Hannifin’s Aircraft Wheel and Brake Division is located in Avon, OH. The unit is engaged in producing wheel, brake systems and related hydraulic products for aircraft. Its products are used in business aviation, general aviation, rotorcraft as well as military aircraft end markets.
The divestiture is in sync with PH’s strategy of restructuring its business portfolio and concentrating more on core businesses. The transaction will also help PH acquire Meggitt PLC by securing approval from certain government and regulatory authorities. The Meggitt acquisition is likely to be completed by the third quarter of 2022.
Zacks Rank and Price Performance
Parker-Hannifin, with a market capitalization of $33.6 billion, currently carries a Zacks Rank #3 (Hold). PH is poised to benefit from improving product demand, the unique Win Strategy and pricing actions in the quarters ahead.
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The stock has declined 9.5% compared with a 9.7% decrease recorded by the industry in the past three months.
The Zacks Consensus Estimate for fourth-quarter fiscal 2022 (ending June 2022) earnings has decreased 4.3% to $4.67 in the past 60 days. Earnings estimates for fiscal 2022 (ending June 2022) have moved 0.4% north to $18.23 during the same period.
Zacks Rank & Stocks to Consider
Two better-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. AIT presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have risen 1.9% in the past three months.
Roper Technologies, Inc. ROP presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.1% for 2022. The stock has declined 4.6% in the past three months.
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ParkerHannifin Corporation (PH) : Free Stock Analysis Report
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