Parker-Hannifin (PH) Tops Q2 EPS by 9c, Revenues Beat; Offers FY19 EPS Guidance

Parker-Hannifin (NYSE: PH) reported Q2 EPS of $2.51, $0.09 better than the analyst estimate of $2.42. Revenue for the quarter came in at $3.47 billion versus the consensus estimate of $3.46 billion.

• Sales increased 3% to second quarter record $3.47 billion; organic sales increased 6%
• As reported EPS were $2.36, or $2.51 adjusted
• Total segment operating margins were a second quarter record at 16.4%
• Adjusted total segment operating margins were 16.6%, a 170 bps year-over-year improvement
• EBITDA margins were 17.0%, or 17.2% adjusted
• Company increases fiscal 2019 full year EPS guidance

Outlook

For the fiscal year ending June 30, 2019, the company has increased guidance for earnings from continuing operations to the range of $11.04 to $11.54 per share, or $11.35 to $11.85 per share on an adjusted basis. Fiscal year 2019 guidance is adjusted on a pre-tax basis for expected business realignment expenses of approximately $19 million and CLARCOR costs to achieve of approximately $16 million and an income tax expense adjustment of $14 million related to U.S. Tax Reform. Guidance assumes organic sales growth in the range of 2.0% to 4.0%.

Williams added, “Our Win Strategy execution positions us to deliver strong profitability and record earnings in fiscal 2019, despite signs of moderating end market demand and the impact of a stronger U.S. dollar. Completing a record year in fiscal 2019, and ongoing initiatives guided by the Win Strategy, solidifies our confidence in achieving our fiscal 2023 five-year performance goals.”

GUIDANCE:

Parker-Hannifin sees FY2019 EPS of $11.35-$11.85, versus the consensus of $11.52.

For earnings history and earnings-related data on Parker-Hannifin (PH) click here.

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