Parker-Hannifin (PH) Tops Q2 EPS; Maintains Outlook

Parker-Hannifin (NYSE: PH) reported Q2 adjusted EPS of $1.52, $0.34 better than the analyst estimate of $1.18. Revenue for the quarter came in at $2.71 billion versus the consensus estimate of $2.69 billion.

“We have taken purposeful action in managing our cost structure to reflect challenging global market conditions,” said Chairman and Chief Executive Officer Tom Williams. “Continued weakness, stemming from natural resource related end markets such as oil and gas, construction, mining and agriculture, continues to impact sales and order rates. Our global teams have adapted quickly to these changes allowing us to deliver solid margin performance with decremental marginal returns of 17.2% on an adjusted basis. We are executing our previously announced restructuring actions and have made significant progress with Simplification initiatives to reduce complexity, increase speed, reduce costs and better serve our customers. We remain well positioned to weather the current downturn.”

GUIDANCE:

Parker-Hannifin maintains FY2016 EPS of $5.90-$6.30.

Williams added, “We expect that market conditions will continue to be challenging through the end of fiscal 2016. Efforts to align costs accordingly and position Parker to deliver strong financial performance will continue and are reflected in our outlook. Parker team members are also working hard to further many new growth initiatives established by our new Win StrategyTM. Expanding our distribution network, commercializing new products and systems, improving the customer experience, developing services, e-Business and Internet of Things are all opportunities that we are pursuing to spur future growth and solidify our position as the leader in the motion and control industry.”

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

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