Parker-Hannifin's (PH) Q1 Earnings Top Estimates, Down Y/Y
Parker-Hannifin Corporation PH reported better-than-expected results for first-quarter fiscal 2020 (ended September 2019), wherein both earnings and revenues beat estimates.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Quarterly adjusted earnings came in at $2.76 per share, down 2.8% year over year from $2.84. However, the bottom line outpaced the Zacks Consensus Estimate of $2.64.
Revenues for the fiscal first quarter were $3,334.5 million, down 4.2% year over year. However, the top line beat the consensus estimate of $3,314 million.
North American segment’s revenues came in at $1,624.6 million, down 3.4% year over year.
The company’s International top-line figure declined 12.6% to $1,078.8 million.
Aerospace Systems segment generated revenues of $631.1 million, up 11.8%.
Cost of sales in the fiscal first quarter was $2,479.7 million, down 4.4% year over year. Selling, general and administrative expenses were $399.2 million, up from $394.3 million. Adjusted operating margin was 17.3%, up 10 basis points.
Balance Sheet/Cash Flow
Exiting the fiscal first quarter, Parker-Hannifin had cash and cash equivalents of $3,627.4 million, up from $3,219.8 million recorded on Jun 30, 2019. At the end of the reported quarter, long-term debt was $7,366.9 million compared with $6,520.8 million as of Jun 30, 2019.
In first three months of fiscal 2020, the company generated $449.1 million cash from operating activities, up from $159.4 million in first-quarter fiscal 2019.
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of its Win Strategy. The company revised its earnings view for fiscal 2020 to $10.10-$10.90 from $11.50-$12.30 per share guided earlier.
Zacks Rank & Stocks to Consider
Parker-Hannifin currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Brady Corporation BRC, Cintas Corporation CTAS Dover Corporation DOV. All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brady delivered average earnings surprise of 9.68% in the trailing four quarters.
Cintas delivered average earnings surprise of 6.26% in the trailing four quarters.
Dover pulled off average positive earnings surprise of 6.70% in the trailing four quarters.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Download Free Report Now >>
Click to get this free report
Cintas Corporation (CTAS): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Brady Corporation (BRC): Free Stock Analysis Report
To read this article on Zacks.com 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.