Tough Quarter at Parker Hannifin (PH) Raises Questions
Shares of Parker Hannifin Corp. (NYSE: PH) are trading lower after the company reported Q1 EPS of $1.57, $0.16 worse than the analyst estimate of $1.73. Parker Hannifin also lowered 2013 EPS to $6.15-6.75, versus prior guidance of $7.10-7.90 and the consensus of $7.44.
Analysts at MKM Partners said they believe "tough demand" in the Asian business was the likely culprit to margin deterioration.
"That said, order intake was challenged across the board," said analyst Josh Pokrzywinski, noting the deterioration in the industrial businesses.
Pokrzywinski added that "We understand the R&D cycle drives some quarter-to-quarter volatility, but the drag has been persistent and deep for some time. At some point, investors may start to question whether the long-term visibility and content wins in Aero are worth what appears to be sustained above-average investment."
For an analyst ratings summary and ratings history on Parker-Hannifin click here. For more ratings news on Parker-Hannifin click here.
Shares of Parker-Hannifin closed at $85.07 yesterday, with a 52 week range of $70.42-$91.47.
Analysts at MKM Partners said they believe "tough demand" in the Asian business was the likely culprit to margin deterioration.
"That said, order intake was challenged across the board," said analyst Josh Pokrzywinski, noting the deterioration in the industrial businesses.
Pokrzywinski added that "We understand the R&D cycle drives some quarter-to-quarter volatility, but the drag has been persistent and deep for some time. At some point, investors may start to question whether the long-term visibility and content wins in Aero are worth what appears to be sustained above-average investment."
For an analyst ratings summary and ratings history on Parker-Hannifin click here. For more ratings news on Parker-Hannifin click here.
Shares of Parker-Hannifin closed at $85.07 yesterday, with a 52 week range of $70.42-$91.47.