Jefferies Cut PT on Parker Hannifin (PH) Following Q4 Results; Outlook Unusually Light, Even for Parker

Jefferies is keeping its Hold rating on Parket Hannifin (NYSE: PH), but cutting its price target 20 percent from $100 to $80 following fourth-quarter earnings results.

Jefferies notes Parker's EPS of $1.79 was one cent shy of their $1.80 estimate. Commenting, "segment margins were lower than expected, offset by slightly better volumes and $0.18 in lower taxes and share count...Approximately $0.10 in below the line items (litigation, compensation, asset write-offs, etc.) negatively impacted results."

On Parker's outlook, Jefferies believes guidance is exceptionally conservative. Parker sees fiscal 2012 earnings of $6.70 to $7.50, with mid-point revs growth of 7.4 percent. The consensus was looking for a more robust ten percent mid-point growth.

Parker's orders continue to be positive though. "On an absolute dollar basis, orders continued to increase sequentially. As a whole Parker's orders increased 15% y/y for the June quarter. The only end market that was called out on the conference call as declining was Telecom, with Commercial Air-Conditioning and Autos having flattened. The order deceleration from +24% last quarter appears to be mostly due to tougher comparisons," said Jefferies.

For more anayst coverage, click here. For a ratings history on Parker, click here.

Parker is down about 0.4 percent Wednesday.

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