Parker-Hannifin (NYSE:PH) Releases Quarterly Earnings Results, Beats Estimates By $0.69 EPS

Parker-Hannifin (NYSE:PH) announced its quarterly 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. Parker-Hannifin had a net margin of 16.62% and a return on equity of 28.80%. The company had revenue of $5.99 billion for the quarter, compared to analyst estimates of $5.81 billion. During the same quarter in the prior year, the business posted $7.22 EPS. Parker-Hannifin’s quarterly revenue was up 17.9% on a year-over-year basis. 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 Stock Performance

NYSE:PH traded up $22.91 during mid-day trading on Friday, hitting $915.21. 953,228 shares of the company’s stock traded hands, compared to its average volume of 746,488. The firm has a market capitalization of $115.42 billion, a price-to-earnings ratio of 27.00, a price-to-earnings-growth ratio of 2.56 and a beta of 1.15. The firm has a 50 day moving average of $946.34 and a two-hundred day moving average of $949.24. The company has a current ratio of 0.94, a quick ratio of 0.74 and a debt-to-equity ratio of 0.79. Parker-Hannifin has a 12 month low of $806.22 and a 12 month 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 paid a dividend of $2.00 per share. The ex-dividend date is Friday, November 13th. This represents a $8.00 annualized dividend and a yield of 0.9%. Parker-Hannifin’s dividend payout ratio is presently 28.08%.

Insider Buying and Selling

In other Parker-Hannifin news, VP Berend Bracht sold 602 shares of Parker-Hannifin stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $1,040.47, for a total value of $626,362.94. Following the transaction, the vice president directly owned 4,399 shares of the company’s stock, valued at $4,577,027.53. The trade was a 12.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.35% of the stock is currently owned by corporate insiders.

More Parker-Hannifin News

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

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on PH. KeyCorp boosted their price target on Parker-Hannifin from $1,100.00 to $1,210.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Wall Street Zen downgraded Parker-Hannifin from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings reissued a “buy (b)” rating on shares of Parker-Hannifin in a report on Thursday, October 15th. Robert W. Baird raised their price objective on Parker-Hannifin from $1,050.00 to $1,275.00 in a research note on Friday, August 7th. Finally, Truist Financial boosted their target price on Parker-Hannifin from $1,269.00 to $1,358.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Eighteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,146.35.

About Parker-Hannifin

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.