## Parker Hannifin Earnings Preview: What to Expect on October 31st
Get ready for another round of earnings season as Parker Hannifin, a prominent industrial conglomerate, prepares to unveil its latest quarterly financial performance on October 31st. Investors are eagerly anticipating this announcement, hoping for a strong showing that reflects the company’s continued success and potential for future growth.
Analysts’ Outlook:
Analysts have set their sights on an earnings per share (EPS) of $6.14 for Parker Hannifin. Bullish investors are hoping for an earnings beat, not only exceeding this estimate but also accompanied by positive guidance, suggesting optimistic prospects for the next quarter. It’s important to remember that often, it’s not just the earnings beat or miss that drives stock price movements, but the guidance provided, as this offers a glimpse into the company’s future trajectory.
Past Performance as a Guide:
Looking back at Parker Hannifin’s recent performance can give us insights into their potential trajectory. In the previous quarter, the company surpassed EPS expectations by a significant $0.55, resulting in a 0.3% increase in share price the following day. Here’s a snapshot of Parker Hannifin’s earnings performance and the corresponding stock price changes over the past few quarters:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|———|————–|————-|—————–|
| Q4 2024 | 6.22 | 6.77 | 0.0 |
| Q3 2024 | 6.12 | 6.51 | 1.0 |
| Q2 2024 | 5.26 | 6.15 | 2.0 |
| Q1 2024 | 5.31 | 5.96 | -1.0 |
Analyst Sentiment and Expectations:
Understanding the overall market sentiment towards Parker Hannifin is crucial for investors. The consensus rating for Parker Hannifin currently sits at ‘Outperform’, reflecting positive sentiment from 13 analysts. The average one-year price target is set at $674.62, suggesting a potential upside of 7.92%.
Comparing Parker Hannifin to Its Peers:
To gain further perspective, it’s beneficial to compare Parker Hannifin’s performance and expectations with its key competitors in the industrial sector. Here’s a look at how Parker Hannifin stacks up against Illinois Tool Works, Ingersoll Rand, and Xylem, based on analyst ratings and average one-year price targets:
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside (%) |
|————————|——————-|——————————|———————–|
| Parker Hannifin | Outperform | $674.62 | 7.92 |
| Illinois Tool Works | Neutral | $267.5 | -57.21 |
| Ingersoll Rand | Outperform | $100.8 | -83.87 |
| Xylem | Buy | $151.5 | -75.76 |
Key Performance Metrics:
This table highlights key financial metrics for Parker Hannifin and its peers, providing a comparative analysis of their financial health and performance:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|————————|———–|—————–|————–|—————–|
| Parker Hannifin | Outperform | 1.78% | $1.86B | 6.63% |
| Illinois Tool Works | Neutral | -1.15% | $1.76B | 25.38% |
| Ingersoll Rand | Outperform | 7.04% | $793.30M | 1.87% |
| Xylem | Buy | 25.96% | $819M | 1.89% |
Key Takeaways:
* Parker Hannifin stands out with its top ranking for revenue growth and gross profit among its peers. However, it falls behind in terms of return on equity.
* Overall, Parker Hannifin appears favorably positioned compared to its peers based on these financial metrics.
Parker Hannifin: A Deeper Dive:
Parker Hannifin is an industrial conglomerate operating through two primary segments: diversified industrial and aerospace systems. The diversified industrial segment encompasses a range of products and services across several industries, including engineered materials, filtration, fluid connectors, instrumentation, and motion systems. The aerospace systems segment focuses on engine and actuation components for the aerospace industry. The company boasts a vast network of 17,100 independent distributors, and about 40% of its business takes place outside the United States.
Parker Hannifin’s Financial Performance:
*
Market Capitalization:
Parker Hannifin’s market capitalization surpasses industry benchmarks, indicating a strong market presence and significant size.*
Revenue Trend:
The company has demonstrated a positive revenue growth rate of 1.78% over the past three months, reflecting an increase in top-line earnings. However, this growth rate falls short of the average among its peers in the Industrials sector.*
Net Margin:
Parker Hannifin’s net margin exceeds industry standards, highlighting its ability to effectively manage costs and achieve impressive profitability with a 15.13% net margin.*
Return on Equity (ROE):
Parker Hannifin’s ROE surpasses industry averages, demonstrating effective use of equity capital and strong financial performance with a 6.63% ROE.*
Return on Assets (ROA):
Parker Hannifin’s ROA surpasses industry standards, highlighting its exceptional financial performance with a 2.67% ROA.*
Debt Management:
The company’s debt-to-equity ratio is higher than the industry average, indicating a higher level of financial risk.Stay Informed:
To stay up-to-date on all earnings releases for Parker Hannifin, be sure to check their earnings calendar on our site. Get ready for a pivotal moment for Parker Hannifin as they unveil their latest financial performance. The earnings call will likely provide crucial insights into their current market position, future prospects, and strategic direction.
