Parker-Hannifin (PH) Tops Q3 EPS by 16c, Revenues Beat; Affirms FY19 EPS Mid-Point Guidance Below Consensus

May 2, 2019 7:33 AM EDT
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Price: $312.03 +0.87%

EPS Growth %: +69.4%

Financial Fact:
Net sales: 2.74B

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Parker-Hannifin (NYSE: PH) reported Q3 EPS of $3.17, $0.16 better than the analyst estimate of $3.01. Revenue for the quarter came in at $3.69 billion versus the consensus estimate of $3.71 billion.

  • EPS reached an all-time quarterly record at $3.14 as reported, or $3.17 adjusted
  • Segment operating margin was an all-time record at 17.1% as reported, or 17.2% adjusted
  • Third quarter sales were $3.69 billion, with organic growth of 2% offset by currency translation
  • Strong cash flow from operations was 10.3% of sales, or 12.1%, excluding pension contribution
  • EBITDA margin was 18.6% as reported, or 18.7% adjusted

“We delivered strong operational performance in the third quarter, achieving all-time quarterly records for total segment operating margin and earnings, and strong year-to-date cash flow from operations,” said Chairman and Chief Executive Officer, Tom Williams. “We eclipsed total segment operating margin of 17% for the first time in a quarter. I am especially pleased that our Aerospace business achieved an all-time record for segment operating margin of 20.7%. While order entry has moderated for the Diversified Industrial Segment against strong comparisons in the prior year quarter, we are confident in our ability to continue executing well and reaching another record year in fiscal 2019.”

Williams added, “Parker continues to operate exceptionally well, with strong execution from Parker team members globally. We remain on track to achieve our fiscal 2023 financial targets through our ongoing focus on driving The Win Strategy™”

GUIDANCE:

Parker-Hannifin sees FY2019 EPS of $11.45-$11.75, versus the consensus of $11.65.

  • Fiscal year 2019 guidance is adjusted on a pre-tax basis for expected business realignment expenses of approximately $16 million and CLARCOR costs to achieve of approximately $14 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 3.0%.

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



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