The 10-second takeaway
For the quarter ended March 31 (Q3), Parker-Hannifin met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Parker-Hannifin recorded revenue of $3.31 billion. The 12 analysts polled by S&P Capital IQ looked for revenue of $3.34 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.68. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.69 per share. GAAP EPS of $1.68 for Q3 were 16% lower than the prior-year quarter's $2.01 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 22.3%, 140 basis points worse than the prior-year quarter. Operating margin was 10.8%, 170 basis points worse than the prior-year quarter. Net margin was 7.8%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.47 billion. On the bottom line, the average EPS estimate is $1.97.
Next year's average estimate for revenue is $13.07 billion. The average EPS estimate is $6.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 550 members out of 565 rating the stock outperform, and 15 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 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 $97.19.
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