Parker-Hannifin (PH) Q2 Earnings & Sales Beat, View Up Again
Zacks Investment Research | Jan 31, 2018 09:42PM ET
Parker-Hannifin Corporation (NYSE:PH) kept its impressive streak of beating estimates alive for the 10th consecutive quarter, as its second-quarter fiscal 2018 adjusted earnings of $2.15 per share trumped the Zacks Consensus Estimate of $2.06 by 4.4%.
The earnings figure was even more impressive on a year-over-year basis, reflecting impressive growth of 12.6%. The bottom-line improvement came on the back of remarkable revenue expansion, improved margins and the revamped Win Strategy.
Inside the Headlines
Net sales in the fiscal second quarter jumped an impressive 26% year over year to a record second-quarter level of $3,371 million, and also trumped the Zacks Consensus Estimate of $3,336 million. Contribution from the CLARCOR acquisition and continued outstanding performance in the company’s Diversified Industrial segment were major growth drivers. Organic sales increased 10% year over year.
Parker-Hannifin’s adjusted total segment operating income for the reported quarter came in at $503.1 million, up 28.4% from the year-ago tally of $391.9 million. Orders also increased 13% in aggregate for the company.The company witnessed order growth for the sixth consecutive quarter, mirroring improving demand in the key end markets and regions.
Segmental Performance
At the Diversified Industrial segment, North American sales for the quarter climbed 40% to $1,565 million, continuing its striking momentum. Additionally, this segment recorded 15% growth in orders on a year-over-year basis.
Industrial International, which is also classified under the Diversified Industrial segment, performed strongly as well, as it reported a 25% year-over-year jump in sales to $1,256 million. In addition to robust sales growth, orders at this segment also advanced 13% on a year-over-year basis.
Revenues at the Aerospace Systems segment returned to growth this quarter and inched up 1.1% year over year to $549.7 million. Orders grew 8% at this segment on a rolling 12-month average basis.
In addition to strong sales growth, Parker-Hannifin achieved robust operating margins during the reported quarter as well.Adjusted segment operating margins during the quarter came in at 14.9%, expanding 20 basis points year over year. In addition to accelerated revenue growth, successful execution of the company’s Win Strategy initiatives drove margins.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
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