The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Parker Hannifin met expectations on revenue and missed on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share grew.
Gross margins dropped, operating margins increased, net margins dropped.
Parker Hannifin logged revenue of $3.1 billion. The 10 analysts polled by S&P Capital IQ hoped for revenue of $3.1 billion. Sales were 8.4% higher than the prior-year quarter's $2.9 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.56. The 14 earnings estimates compiled by S&P Capital IQ forecast $1.62 per share. GAAP EPS of $1.56 for Q2 were 12% higher than the prior-year quarter's $1.39 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 23.4%, 10 basis points worse than the prior-year quarter. Operating margin was 11.5%, 10 basis points better than the prior-year quarter. Net margin was 7.7%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.4 billion. On the bottom line, the average EPS estimate is $1.92.
Next year's average estimate for revenue is $13.1 billion. The average EPS estimate is $7.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 553 members out of 569 rating the stock outperform, and 16 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give Parker Hannifin a green thumbs-up, and one gives 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 $93.50.
- Add Parker Hannifin to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.