Parker-Hannifin (NYSE:PH) Announces Earnings Results

Parker-Hannifin (NYSE:PH) announced its quarterly earnings data on Thursday. The industrial products company reported $8.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $8.21 by $0.69, FiscalAI reports. Parker-Hannifin had a return on equity of 28.48% and a net margin of 16.97%. The firm had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.81 billion. The business’s revenue for the quarter was up 17.9% on a year-over-year basis. During the same quarter in the prior 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 Stock Performance

Shares of PH traded up $22.91 during trading hours on Friday, hitting $915.21. The company’s stock had a trading volume of 953,228 shares, compared to its average volume of 637,695. The business has a 50 day simple moving average of $946.34 and a two-hundred day simple moving average of $949.24. Parker-Hannifin has a 52-week low of $806.22 and a 52-week high of $1,099.94. 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 company has a market cap of $115.42 billion, a price-to-earnings ratio of 31.43, a PEG ratio of 2.59 and a beta of 1.15.

Parker-Hannifin Announces Dividend

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

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on PH shares. Stifel Nicolaus set a $1,002.00 price target on shares of Parker-Hannifin in a research report on Monday, October 19th. Argus boosted their target price on shares of Parker-Hannifin from $1,030.00 to $1,200.00 and gave the company a “buy” rating in a research note on Monday, August 10th. The Goldman Sachs Group boosted their target price on shares of Parker-Hannifin from $1,071.00 to $1,165.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Sanford C. Bernstein increased their target price on shares of Parker-Hannifin from $1,037.00 to $1,218.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Finally, Raymond James Financial raised their price target on shares of Parker-Hannifin from $1,050.00 to $1,250.00 and gave the stock an “outperform” rating in a research note on Monday, August 10th. Eighteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Parker-Hannifin has an average rating of “Moderate Buy” and an average target price of $1,146.35.

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 Activity at Parker-Hannifin

In related news, VP Berend Bracht sold 602 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $1,040.47, for a total value of $626,362.94. Following the completion of the transaction, the vice president directly owned 4,399 shares of the company’s stock, valued at approximately $4,577,027.53. This trade represents a 12.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.35% of the company’s stock.

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.