Parker-Hannifin Corporation PH is slated to release fourth-quarter fiscal 2023 results on Aug 3.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings has been revised upward by approximately 1% in the past 60 days. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.4%.
Let’s see how things have shaped up for Parker-Hannifin’s fiscal fourth-quarter earnings.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation Quote
Factors to Note
Strength across end markets and higher orders are expected to have driven Parker-Hannifin’s fiscal fourth-quarter performance.
Broad-based growth in the North American and international regions is expected to have boosted the Diversified Industrial segment’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for Diversified Industrial North America segment revenues indicates a 7.6% increase from the year-ago reported figure. The same for the Diversified Industrial International segment suggests a 7.7% increase from the year-ago reported figure.
Robust original equipment manufacturer and Maintenance, Repair and Operations commercial activity are expected to have buoyed the Aerospace Systems segment’s performance. Significant contribution from the September 2022 acquisition of Meggitt plc, which expanded PH’s presence in the UK, positioning it well to provide a broader suite of solutions for aircraft, and aeroengine components and systems, is expected to have boosted segmental revenues in the to-be-reported quarter. The Zacks Consensus Estimate for Aerospace Systems segment’s revenues hints at a 75.7% jump from the year-ago reported figure.
Benefits from the Win Strategy, which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth, and pricing actions are expected to have aided PH’s margins in the to-be-reported quarter.
However, the escalating cost of sales and foreign currency headwinds might have weighed on Parker-Hannifin’s fiscal fourth-quarter performance.
Earnings Whispers
Our proven model suggests an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Parker-Hannifin has an Earnings ESP of +1.41% as the Most Accurate Estimate is pegged at $5.58, higher than the Zacks Consensus Estimate of $5.50. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Parker-Hannifin presently carries a Zacks Rank of 2.
Highlights of Q3 Earnings
Parker-Hannifin reported third-quarter fiscal 2023 (ended Mar 31, 2023) adjusted earnings of $5.93 per share, which beat the Zacks Consensus Estimate of $5.03. The bottom line jumped 23% year over year. Total revenues of $5,061.7 million also outperformed the Zacks Consensus Estimate of $4,804.1 million. The top line jumped 24% year over year. Organic sales for the quarter increased 12% year over year. Orders were up 2% year over year.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Emerson Electric Co. EMR has an Earnings ESP of +2.35% and a Zacks Rank #2. The company is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 10.2% in the past three months.
Johnson Controls JCI has an Earnings ESP of +0.24% and a Zacks Rank #3. The company is slated to release third-quarter fiscal 2023 earnings on Aug 2.
Johnson Controls delivered a trailing four-quarter earnings surprise of 1.4%, on average. The stock has rallied 16.3% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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