Parker-Hannifin (NYSE:PH) Posts Quarterly Earnings Results

Parker-Hannifin (NYSE:PH) issued its quarterly earnings data on Thursday. The industrial products company reported $8.90 earnings per share for the quarter, beating analysts’ consensus estimates of $8.21 by $0.69, FiscalAI reports. Parker-Hannifin had a return on equity of 28.80% and a net margin of 16.62%. The firm had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.81 billion. During the same quarter last year, the business posted $7.22 earnings per share. The business’s quarterly revenue was up 17.9% compared to the same quarter last year. Parker-Hannifin updated its FY 2027 guidance to 36.450-37.250 EPS.

Here are the key takeaways from Parker-Hannifin’s conference call:

• Parker posted record fiscal Q1 results, with sales up 18% to $6 billion, organic growth of 11.5%, adjusted segment margins up 120 basis points to 28.6%, and adjusted EPS up 23% to $8.90.
• Demand strengthened broadly: rolling 12-month orders grew 13% and backlog reached a record $13.7 billion, with contributions from aerospace, industrial businesses, and Filtration Group.
• The company raised its FY2027 outlook, now expecting 9% organic growth at the midpoint and adjusted EPS of $36.85; free cash flow guidance is $3.5 billion to $4 billion, with approximately 100% conversion expected.
• Filtration Group adds complementary filtration technologies and aftermarket exposure; Parker expects $1.85 billion of sales during its partial ownership year, $220 million in cost synergies, and $0.50 of adjusted EPS accretion.
• Acquisition financing raised expected FY2027 interest expense to $690 million, while net debt stood at 2.7 times adjusted EBITDA; first-quarter free cash flow was also slightly below the prior year.

Parker-Hannifin Trading Up 2.6%

PH traded up $22.91 on Friday, hitting $915.21. The company had a trading volume of 953,228 shares, compared to its average volume of 746,488. The company has a market cap of $115.42 billion, a PE ratio of 27.00, a PEG ratio of 2.56 and a beta of 1.15. Parker-Hannifin has a 12-month low of $806.22 and a 12-month high of $1,099.94. The company has a quick ratio of 0.74, a current ratio of 0.94 and a debt-to-equity ratio of 0.79. The business’s fifty day simple moving average is $946.34 and its 200 day simple moving average is $949.24.

Parker-Hannifin Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be issued a $2.00 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.9%. Parker-Hannifin’s dividend payout ratio (DPR) is presently 28.08%.

Parker-Hannifin News Summary

Here are the key news stories impacting Parker-Hannifin this week:

• Positive Sentiment: Results and outlook topped expectations. Fiscal Q1 sales rose 18% to a record $6.0 billion, with organic growth of 11.5%. Adjusted EPS of $8.90 beat the $8.21 consensus estimate. PH raised FY2027 adjusted EPS guidance to $36.45–$37.25, above analyst estimates, and forecast revenue of $24.9–$25.6 billion, also ahead of consensus. Company earnings release
• Positive Sentiment: Broad demand and operating performance strengthened the growth case. Management cited increased demand across market verticals and record backlog levels. Adjusted segment operating margin expanded to 28.6%, up 120 basis points year over year; the company also raised its outlook for organic sales growth, margins and free cash flow. Zacks earnings analysis
• Neutral Sentiment: Truist lowered its price target but maintained a Buy rating. The firm cut its target to $1,237 from $1,358, a less bullish valuation view that nonetheless remains consistent with a positive recommendation. Truist price-target update
• Neutral Sentiment: PH is scheduled to present at the Robert W. Baird Global Industrial Conference on November 10. The announcement did not provide new financial details. Conference announcement

Wall Street Analyst Weigh In

A number of equities analysts recently commented on PH shares. Susquehanna increased their price target on Parker-Hannifin from $1,100.00 to $1,250.00 and gave the company a “positive” rating in a research note on Friday, August 7th. JPMorgan Chase & Co. reduced their price objective on Parker-Hannifin from $1,140.00 to $1,131.00 and set an “overweight” rating on the stock in a research note on Friday, October 9th. Jefferies Financial Group upped their price objective on Parker-Hannifin from $1,100.00 to $1,275.00 in a report on Friday, August 7th. TD Cowen increased their target price on Parker-Hannifin from $850.00 to $950.00 and gave the company a “hold” rating in a research report on Wednesday, October 14th. Finally, Evercore increased their target price on Parker-Hannifin from $1,064.00 to $1,217.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. Eighteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Parker-Hannifin has a consensus rating of “Moderate Buy” and an average target price of $1,146.35.

Insiders Place Their Bets

In other Parker-Hannifin news, VP Berend Bracht sold 602 shares of the company’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $1,040.47, for a total transaction of $626,362.94. Following the sale, the vice president directly owned 4,399 shares in the company, valued at $4,577,027.53. This represents a 12.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.35% of the stock is owned by insiders.

Parker-Hannifin Company Profile

Parker-Hannifin is a global manufacturer of motion and control technologies. Its products include hydraulic and pneumatic systems, fluid connectors, filtration and sealing products, electromechanical components, and systems for aerospace and climate control applications.

The company serves customers across industries such as aerospace, manufacturing, transportation, energy, and life sciences. Its operations span markets around the world, with businesses organized around industrial and aerospace products and services.

Founded in 1917 by Arthur L.