Parker-Hannifin To Gain From Recovering End Markets, CLARCOR
Zacks Investment Research | Feb 26, 2018 10:00PM ET
Parker-Hannifin Corporation (NYSE:PH) posted impressive results in the first half of fiscal 2018, after charting robust earnings beats and strong top-line growth in 2017. Recently, the Zacks Rank #2 (Buy) company reported its 10th consecutive earnings beat in second-quarter fiscal 2018 results.
The company’s top line has been gaining momentum on the back of contribution from the CLARCOR acquisition and continued outstanding performance in the company’s Diversified Industrial segment, particularly in North America.Further, its diligent global restructuring initiatives are proving conducive to profits. These initiatives helped Parker-Hannifin offset weakness in some vital regions, which strengthened its position in the end markets.
Buoyed by the competency of the revamped Win Strategy and its strategic acquisitions, Parker-Hannifin is bullish about delivering fundamental financial goals for fiscal 2018. Concurrent with second-quarter fiscal 2018 results, Parker-Hannifin raised its fiscal 2018 guidance once again.
Adjusted earnings from continuing operations are projected in the range of $9.65-$10.05 per share (up from the previous band of $9.10-$9.70). The guidance is adjusted for expected business realignment expenses of approximately $58 million, a net one-time adjustment in income tax expense of $224.5 million and CLARCOR acquisition-related expenses of $52 million. Parker-Hannifin expects to generate synergy savings of about $58 million from CLARCOR integration in fiscal 2018.
The company expects sales to grow in the range of 15.3-18.9% from the previous fiscal, with organic growth projected at around 6.5% and acquisitions to contribute roughly 8.1%.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
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