What to Expect from Parker Hannifin's Earnings

Parker Hannifin PH is set to give its latest quarterly earnings report on Thursday, 2024-10-31. Here's what investors need to know before the announcement.

Analysts estimate that Parker Hannifin will report an earnings per share (EPS) of $6.14.

Parker Hannifin bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

Last quarter the company beat EPS by $0.55, which was followed by a 0.3% increase in the share price the next day.

Here's a look at Parker Hannifin's past performance and the resulting price change:

Analysts' Perspectives on Parker Hannifin

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Parker Hannifin.

The consensus rating for Parker Hannifin is Outperform, derived from 13 analyst ratings. An average one-year price target of $674.62 implies a potential 7.92% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Illinois Tool Works, Ingersoll Rand and Xylem, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Illinois Tool Works is maintaining an Neutral status according to analysts, with an average 1-year price target of $267.5, indicating a potential 57.21% downside.
• The consensus among analysts is an Outperform trajectory for Ingersoll Rand, with an average 1-year price target of $100.8, indicating a potential 83.87% downside.
• Analysts currently favor an Buy trajectory for Xylem, with an average 1-year price target of $151.5, suggesting a potential 75.76% downside.

Insights: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Illinois Tool Works, Ingersoll Rand and Xylem, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Parker Hannifin ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, Parker Hannifin is positioned favorably compared to its peers based on the provided metrics.

All You Need to Know About Parker Hannifin

Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.

Parker Hannifin: Financial Performance Dissected

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Positive Revenue Trend: Examining Parker Hannifin's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.78% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Parker Hannifin's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.13% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Parker Hannifin's ROE stands out, surpassing industry averages. With an impressive ROE of 6.63%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Parker Hannifin's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.67% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Parker Hannifin's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.87, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Parker Hannifin visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.