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Parker-Hannifin's (PH) Q4 Earnings & Revenues Top Estimates

Zacks Equity Research

Parker-Hannifin Corporation PH reported better-than-expected results for fourth-quarter fiscal 2019 (ended June 2019), wherein both earnings and revenues beat estimates.

Earnings/Revenues

Quarterly adjusted earnings came in at $3.31 per share, up 2.8% year over year from $3.22. The bottom line also outpaced the Zacks Consensus Estimate of $3.09.

In fiscal 2019, the company’s adjusted earnings came in at $11.85 per share, up 14%.

Revenues for the fiscal fourth quarter were $3,681.5 million, down 3.6% year over year. However, the top line beat the consensus estimate of $3,669 million.

For fiscal 2019, revenues came in at $14,320.3 million, up from $14,302.4 million recorded in the previous fiscal.

Parker-Hannifin Corporation Price, Consensus and EPS Surprise

Parker-Hannifin Corporation Price, Consensus and EPS Surprise

Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote

Segmental Breakup

North American segment’s revenues came in at $1,745.3 million, down 3.3% year over year.

The company’s International top-line performance declined 8.6% to $1,258.3 million.

Aerospace Systems segment generated revenues of $677.9 million, up 6.5%.

Costs/Margins

Cost of sales in the fiscal fourth quarter was $2,739.6 million, down 3.2% year over year. Selling, general and administrative expenses were $391.5 million, down from $418.2 million. Adjusted operating margin was 17.6%, up 10 basis points.

Balance Sheet/Cash Flow

Exiting the fiscal fourth quarter, Parker-Hannifin had cash and cash equivalents of $3,219.8 million, up from $822.1 million recorded on Jun 30, 2018. At the end of the reported quarter, long-term debt was $6,520.8 million compared with $4,318.6 million as of Jun 30, 2018.

In fiscal 2019, the company generated $1,730.1 million cash from operating activities, up from $1,596.7 million in fiscal 2018.

Outlook

Parker-Hannifin intends to boost its near-term revenues and profitability on the back of its Win Strategy. The company provided earnings view for fiscal 2020 in the range of $11.50-$12.30 per share.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the same space are DXP Enterprises, Inc. DXPE, Dover Corporation DOV and Roper Technologies, Inc. ROP. All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DXP Enterprises delivered average earnings surprise of 48.47% in the trailing four quarters.

Dover pulled off average positive earnings surprise of 6.91% in the trailing four quarters.

Roper delivered average earnings surprise of 6.92% in the trailing four quarters.

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