Industrial machinery company Parker-Hannifin (NYSE: PH) will be reporting results tomorrow morning. Here’s what you need to know.
Parker-Hannifin met analysts’ revenue expectations last quarter, reporting revenues of $4.90 billion, up 1.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Parker-Hannifin a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Parker-Hannifin’s revenue to be flat year on year at $4.79 billion, slowing from the 3.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Parker-Hannifin has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Parker-Hannifin’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Graco’s revenues decreased 3.2% year on year, missing analysts’ expectations by 1.4%, and GE Aerospace reported revenues up 4.5%, topping estimates by 3.9%. Graco traded down 3.2% following the results while GE Aerospace was up 4.5%.
Read our full analysis of Graco’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.5% on average over the last month. Parker-Hannifin is up 4.7% during the same time and is heading into earnings with an average analyst price target of $741.16 (compared to the current share price of $666.23).
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