Parkers In HALs Program - Analyst Blog

By Zacks Equity Research,

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Parker Hannifin Corporation 's ( PH ) business segment, Parker Aerospace, has been chosen to be a part of Helicopter Autonomous Landing System (HALS) program of Sierra Nevada Corporation (SNC). Thermal management solutions from Parker Aerospace's thermal management systems ( TMS ) organization will help in the installation of HALS on UH-60 Black Hawk helicopters.

The US Army Aviation Networks Mission Planning Program Directorate has issued a degraded visual environments (DVE) operational needs statement, to fulfill which SNC was awarded a contract. SNC's HALS with its real-time 3D imagery with digital terrain map, satellite imagery, and DVE specific guidance symbology delivers a total DVE solution for takeoff, approach, and landing operations in fog, brownouts, and other DVEs. Operation Enduring Freedom will be aided by the HALs.

We believe Parker Hannifin is a high-quality company that is showing signs of good execution through its cost-saving efforts. Although it stands to benefit from any recovery in global manufacturing activity, the company's increased scale in its international business (where Europe represents the largest geography by far), as well as its meaningful aerospace presence, increases its late-cycle exposure relative to the past economic cycles. Parker-Hannifin benefits from a recovering economy as well as from the implementation of the Win Strategy. The company focuses on providing leading services to its customers, lean operations and investments in new developments, which will help it to achieve strong earnings growth ahead.

The company continues to build a robust financial position, maintaining a strong cash flow generation for the company. However, a depressed market condition remains a matter of concern for the company.

Parker-Hannifin Corporation is a leading worldwide full-line diversified manufacturer of motion and control technologies and systems, including fluid power systems, electromechanical controls and related components. In addition to motion and control products, the company is also a leading worldwide producer of fluid purification, fluid and fuel control, process instrumentation, air conditioning, refrigeration, electromagnetic shielding and thermal management products and systems.

We continue to maintain a Neutral rating on Parker-Hannifin for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

PARKER HANNIFIN ( PH ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: PH , TMS

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