Looking Ahead to Parker Hannifin's 2Q - Analyst Blog

Parker Hannifin ( PH ) is set to report its second quarter 2013 results on January 18, 2013. The company posted a -9.25% surprise in the last quarter. Let's see how things are shaping up for this announcement.

Growth Factors This Past Quarter

Parker was primarily affected by major cancellations and rescheduling of orders in the prior quarter. The industrial business, which makes up around three-quarters of its revenue declined.

The decline was attributable to recessionary conditions in Europe, moderating growth in Asia, negative currency translations and flat organic sales. In addition, orders also declined. The five acquisitions completed in the first quarter had a positive impact on quarterly sales.

The company expects the sluggish trends to continue through the second quarter of fiscal 2013 and has therefore lowered its fiscal 2013 guidance. Earnings are now expected to be in the range of $6.15 to $6.75 per diluted share, down from the prior guidance of $7.10 to $7.90.

Earnings Whispers?

Our proven model does not conclusively show that Parker is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, #2 or #3 for this to happen. That is not the case here as you will see below.

Negative Zacks ESP: The Most Accurate estimate stands at $1.07 while the Zacks Consensus Estimate is higher at $1.13. That is a difference of -5.3%.

Zacks Rank #3 (Hold): Parker's Zacks Rank #3 (Hold) lowers the predictive power of ESP because the Zacks Rank #3 when combined with a negative ESP makes surprise prediction difficult.

Other Stocks to Consider

The following is one of the company's peers you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter:

  • Altra Holdings Inc . ( AIMC ) -- Earnings ESP of 4.0% and Zacks #1 Rank (Strong Buy)

ALTRA HOLDINGS (AIMC): Free Stock Analysis Report

PARKER HANNIFIN (PH): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More