Parker-Hannifin (NYSE:PH) Issues Quarterly Earnings Results, Beats Estimates By $0.69 EPS

Parker-Hannifin (NYSE:PH) posted its quarterly earnings results on Thursday. The industrial products company reported $8.90 earnings per share for the quarter, beating the consensus estimate of $8.21 by $0.69, FiscalAI reports. Parker-Hannifin had a net margin of 16.62% and a return on equity of 28.80%. The company had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.81 billion. During the same quarter in the prior year, the business earned $7.22 earnings per share. The firm’s revenue for the quarter was up 17.9% on a year-over-year basis. 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 Stock Performance

NYSE PH traded up $22.91 during trading on Friday, hitting $915.21. 953,228 shares of the company’s stock traded hands, compared to its average volume of 746,488. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.74 and a current ratio of 0.94. The stock has a market capitalization of $115.42 billion, a price-to-earnings 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 business has a 50 day moving average of $946.34 and a 200-day moving average of $949.24.

Parker-Hannifin Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 13th will be issued a dividend of $2.00 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $8.00 annualized dividend and a yield of 0.9%. Parker-Hannifin’s dividend payout ratio is 28.08%.

Wall Street Analyst Weigh In

PH has been the subject of a number of research reports. Wells Fargo & Company started coverage on shares of Parker-Hannifin in a research report on Thursday, September 24th. They set an “equal weight” rating and a $1,050.00 target price for the company. Evercore lifted their price target on shares of Parker-Hannifin from $1,064.00 to $1,217.00 and gave the stock an “outperform” rating in a report on Tuesday, August 11th. Truist Financial upped their price objective on Parker-Hannifin from $1,269.00 to $1,358.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Stifel Nicolaus set a $1,002.00 price objective on Parker-Hannifin in a research note on Monday, October 19th. Finally, Wall Street Zen lowered Parker-Hannifin from a “buy” rating to a “hold” rating in a report on Saturday. Eighteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,146.35.

Insider Buying and Selling at Parker-Hannifin

In other news, VP Berend Bracht sold 602 shares of Parker-Hannifin stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $1,040.47, for a total value of $626,362.94. Following the completion of the transaction, the vice president owned 4,399 shares in the company, valued at $4,577,027.53. This trade represents a 12.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.35% of the stock is owned by insiders.

Trending Headlines about Parker-Hannifin

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

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.