The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Parker-Hannifin beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Parker-Hannifin logged revenue of $3.07 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $2.92 billion on the same basis. GAAP reported sales were 1.3% lower than the prior-year quarter's $3.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.19. The 13 earnings estimates compiled by S&P Capital IQ forecast $1.14 per share. GAAP EPS of $1.19 for Q2 were 24% lower than the prior-year quarter's $1.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.0%, 240 basis points worse than the prior-year quarter. Operating margin was 8.6%, 290 basis points worse than the prior-year quarter. Net margin was 5.9%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.35 billion. On the bottom line, the average EPS estimate is $1.78.
Next year's average estimate for revenue is $12.97 billion. The average EPS estimate is $6.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 552 members out of 567 rating the stock outperform, and 15 members rating it underperform. Among 184 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give Parker-Hannifin a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Parker-Hannifin is outperform, with an average price target of $87.53.
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