Industrial machinery company Parker-Hannifin (NYSE:PH) will be reporting results this Thursday before market hours. Here’s what to expect.
Parker-Hannifin met analysts’ revenue expectations last quarter, reporting revenues of $4.96 billion, down 2.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.
Is Parker-Hannifin a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Parker-Hannifin’s revenue to decline 1.5% year on year to $5.11 billion, a reversal from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.08 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 7 upward revisions over the last 30 days (we track 16 analysts). Parker-Hannifin has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Parker-Hannifin’s peers in the gas and liquid handling segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Helios’s revenues decreased 3.4% year on year, beating analysts’ expectations by 5.5%, and Gorman-Rupp reported revenues up 5.6%, topping estimates by 2.5%. Helios traded up 30.7% following the results while Gorman-Rupp was also up 9.9%.
Read our full analysis of Helios’s results here and Gorman-Rupp’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 2.1% on average over the last month. Parker-Hannifin is up 1.2% during the same time and is heading into earnings with an average analyst price target of $750 (compared to the current share price of $714.88).
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