Parker-Hannifin (NYSE:PH) Issues Quarterly Earnings Results

Parker-Hannifin (NYSE:PH) issued its earnings results on Thursday. The industrial products company reported $8.90 EPS for the quarter, topping the consensus estimate of $8.21 by $0.69, FiscalAI reports. The business had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.81 billion. Parker-Hannifin had a return on equity of 28.48% and a net margin of 16.97%. The firm’s revenue was up 17.9% compared to the same quarter last year. During the same quarter last year, the company earned $7.22 EPS. Parker-Hannifin updated its FY 2027 guidance to 36.450-37.250 EPS.

Here are the key takeaways from Parker-Hannifin’s conference call:

• Parker posted record fiscal Q1 results, with sales up 18% to $6 billion, organic growth of 11.5%, adjusted segment margins up 120 basis points to 28.6%, and adjusted EPS up 23% to $8.90.
• Demand strengthened broadly: rolling 12-month orders grew 13% and backlog reached a record $13.7 billion, with contributions from aerospace, industrial businesses, and Filtration Group.
• The company raised its FY2027 outlook, now expecting 9% organic growth at the midpoint and adjusted EPS of $36.85; free cash flow guidance is $3.5 billion to $4 billion, with approximately 100% conversion expected.
• Filtration Group adds complementary filtration technologies and aftermarket exposure; Parker expects $1.85 billion of sales during its partial ownership year, $220 million in cost synergies, and $0.50 of adjusted EPS accretion.
• Acquisition financing raised expected FY2027 interest expense to $690 million, while net debt stood at 2.7 times adjusted EBITDA; first-quarter free cash flow was also slightly below the prior year.

Parker-Hannifin Price Performance

NYSE PH traded up $22.91 during trading on Friday, reaching $915.21. The company’s stock had a trading volume of 953,228 shares, compared to its average volume of 637,695. The stock has a market capitalization of $115.42 billion, a PE ratio of 31.43, a P/E/G ratio of 2.59 and a beta of 1.15. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.26 and a quick ratio of 0.74. The firm has a fifty day moving average of $946.34 and a 200 day moving average of $949.24. Parker-Hannifin has a one year low of $806.22 and a one year high of $1,099.94.

Parker-Hannifin Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 0.9%. The ex-dividend date is Friday, November 13th. Parker-Hannifin’s payout ratio is presently 28.08%.

Parker-Hannifin News Summary

Here are the key news stories impacting Parker-Hannifin this week:

• Positive Sentiment: Results and outlook topped expectations. Fiscal Q1 sales rose 18% to a record $6.0 billion, with organic growth of 11.5%. Adjusted EPS of $8.90 beat the $8.21 consensus estimate. PH raised FY2027 adjusted EPS guidance to $36.45–$37.25, above analyst estimates, and forecast revenue of $24.9–$25.6 billion, also ahead of consensus. Company earnings release
• Positive Sentiment: Broad demand and operating performance strengthened the growth case. Management cited increased demand across market verticals and record backlog levels. Adjusted segment operating margin expanded to 28.6%, up 120 basis points year over year; the company also raised its outlook for organic sales growth, margins and free cash flow. Zacks earnings analysis
• Neutral Sentiment: Truist lowered its price target but maintained a Buy rating. The firm cut its target to $1,237 from $1,358, a less bullish valuation view that nonetheless remains consistent with a positive recommendation. Truist price-target update
• Neutral Sentiment: PH is scheduled to present at the Robert W. Baird Global Industrial Conference on November 10. The announcement did not provide new financial details. Conference announcement

Insider Buying and Selling at Parker-Hannifin

In other news, VP Berend Bracht sold 602 shares of Parker-Hannifin stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $1,040.47, for a total transaction of $626,362.94. Following the completion of the sale, the vice president owned 4,399 shares in the company, valued at approximately $4,577,027.53. This trade represents a 12.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.35% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on PH. Wells Fargo & Company began coverage on shares of Parker-Hannifin in a report on Thursday, September 24th. They issued an “equal weight” rating and a $1,050.00 price target on the stock. BNP Paribas Exane raised their price objective on shares of Parker-Hannifin from $1,220.00 to $1,270.00 and gave the company an “outperform” rating in a research report on Friday, September 18th. KeyCorp boosted their price objective on shares of Parker-Hannifin from $1,100.00 to $1,210.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Susquehanna upped their target price on shares of Parker-Hannifin from $1,100.00 to $1,250.00 and gave the stock a “positive” rating in a report on Friday, August 7th. Finally, Argus upped their target price on shares of Parker-Hannifin from $1,030.00 to $1,200.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Eighteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Parker-Hannifin has a consensus rating of “Moderate Buy” and an average target price of $1,146.35.

Parker-Hannifin Company Profile

Parker-Hannifin is a global manufacturer of motion and control technologies. Its products include hydraulic and pneumatic systems, fluid connectors, filtration and sealing products, electromechanical components, and systems for aerospace and climate control applications.

The company serves customers across industries such as aerospace, manufacturing, transportation, energy, and life sciences. Its operations span markets around the world, with businesses organized around industrial and aerospace products and services.

Founded in 1917 by Arthur L.