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

Parker-Hannifin (NYSE:PH) announced its quarterly earnings data on Thursday. The industrial products company reported $7.65 EPS for the quarter, topping analysts’ consensus estimates of $7.11 by $0.54, FiscalAI reports. The company had revenue of $5.17 billion during the quarter, compared to the consensus estimate of $5.07 billion. Parker-Hannifin had a return on equity of 27.23% and a net margin of 18.17%.

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

• Parker reported a record Q2 — $5.2B sales, 6.6% organic growth, 150 bps segment margin expansion to 27.1%, adjusted EPS of $7.65 (+17%), operating cash flow of $1.6B, and a record backlog of $11.7B.
• Management raised full‑year guidance — organic growth to 4–6% (5% midpoint), reported sales to 5.5–7.5%, adjusted EPS to a $30.70 midpoint, adjusted segment margin to 27.2%, and free cash flow to $3.2–$3.6B with conversion >100%.
• Parker announced the acquisition of Filtration Group, expects close in 6–12 months, plans to capture about $220M of cost synergies by year three, expand filtration aftermarket share, and expects the deal to be accretive to growth, margins, EPS, and cash flow.
• Aerospace was a major driver — record Q2 sales of $1.7B, ~13.5% organic growth, a 30.2% segment margin, orders +14% and a record aerospace backlog of ~$8B, led by commercial OEM and aftermarket strength.
• Orders were strong (+9%) and positive across all businesses, improving visibility, but management notes the company is more long‑cycle today (more aerospace/filtration/engineering materials), so conversion timing from backlog to revenue remains uneven.

Parker-Hannifin Stock Up 3.5%

Shares of PH traded up $32.35 during midday trading on Thursday, hitting $948.62. The stock had a trading volume of 631,486 shares, compared to its average volume of 633,617. The firm has a market cap of $119.71 billion, a price-to-earnings ratio of 33.81, a price-to-earnings-growth ratio of 3.22 and a beta of 1.25. Parker-Hannifin has a twelve month low of $488.45 and a twelve month high of $965.00. The company has a 50 day simple moving average of $892.87 and a two-hundred day simple moving average of $803.70. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.07 and a quick ratio of 0.61.

Parker-Hannifin Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Friday, February 6th will be paid a $1.80 dividend. The ex-dividend date of this dividend is Friday, February 6th. This represents a $7.20 annualized dividend and a dividend yield of 0.8%. Parker-Hannifin’s dividend payout ratio (DPR) is currently 25.65%.

Analyst Ratings Changes

PH has been the subject of a number of recent research reports. Truist Financial increased their price objective on shares of Parker-Hannifin from $977.00 to $1,097.00 and gave the company a “buy” rating in a research note on Thursday, December 18th. Barclays boosted their price target on Parker-Hannifin from $950.00 to $990.00 and gave the company an “overweight” rating in a research note on Wednesday, January 7th. Morgan Stanley reiterated a “positive” rating on shares of Parker-Hannifin in a research note on Wednesday, January 14th. Citigroup reissued a “buy” rating on shares of Parker-Hannifin in a report on Monday, January 12th. Finally, Robert W. Baird upped their price target on Parker-Hannifin from $930.00 to $960.00 and gave the company an “outperform” rating in a research note on Wednesday, November 12th. Seventeen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $950.17.

Insider Buying and Selling

In related news, VP Berend Bracht sold 3,507 shares of the stock in a transaction on Wednesday, November 12th. The shares were sold at an average price of $864.58, for a total transaction of $3,032,082.06. Following the completion of the transaction, the vice president owned 2,580 shares in the company, valued at approximately $2,230,616.40. This represents a 57.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Rachid Bendali sold 1,437 shares of Parker-Hannifin stock in a transaction on Wednesday, November 12th. The shares were sold at an average price of $852.99, for a total transaction of $1,225,746.63. Following the completion of the sale, the vice president owned 2,714 shares in the company, valued at $2,315,014.86. The trade was a 34.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 7,432 shares of company stock worth $6,484,116. 0.32% of the stock is owned by insiders.

Institutional Trading of Parker-Hannifin

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Freestone Grove Partners LP bought a new position in shares of Parker-Hannifin in the 3rd quarter valued at about $86,046,000. Alliancebernstein L.P. lifted its holdings in Parker-Hannifin by 22.9% during the 2nd quarter. Alliancebernstein L.P. now owns 459,326 shares of the industrial products company’s stock valued at $320,825,000 after purchasing an additional 85,445 shares during the last quarter. Balyasny Asset Management L.P. increased its holdings in shares of Parker-Hannifin by 199.2% in the third quarter. Balyasny Asset Management L.P. now owns 65,619 shares of the industrial products company’s stock valued at $49,749,000 after purchasing an additional 43,690 shares during the last quarter. Man Group plc lifted its stake in shares of Parker-Hannifin by 481.0% during the 2nd quarter. Man Group plc now owns 50,197 shares of the industrial products company’s stock worth $35,061,000 after buying an additional 41,557 shares during the last quarter. Finally, Credit Agricole S A acquired a new position in Parker-Hannifin in the 3rd quarter valued at about $30,975,000. 82.44% of the stock is owned by institutional investors.

About Parker-Hannifin

Parker-Hannifin Corporation (NYSE: PH) is a global manufacturer and provider of motion and control technologies and systems. The company designs, manufactures and services a broad range of engineered components and systems used to control the movement and flow of liquids, gases and hydraulic power. Its product portfolio is applied across demanding environments and includes solutions for industrial manufacturing, aerospace, mobile equipment and other engineered applications.

Parker-Hannifin’s product and service offerings span hydraulic and pneumatic components, fittings and fluid connectors, valves, pumps and motors, electromechanical actuators and motion-control systems, filtration and separation products, and seals and sealing systems.