Parker-Hannifin FY22 EPS Outlook Trails Consensus After Beating On Q4 Earnings

Parker-Hannifin Corp PH reported fourth-quarter sales growth of 25.3% year-over-year to $3.96 billion and +22% on an organic basis, beating the consensus of $3.93 billion.
Segment Sales: Diversified Industrial $1.82 billion (+27% Y/Y) and Aerospace Systems $630 million (+1% Y/Y).
Orders increased 43% Y/Y, with a 56% increase in Diversified Industrial North America businesses, +58% Diversified Industrial International businesses, and a 7% decrease in the Aerospace Systems Segment on a rolling 12-month average basis.
Adjusted EPS improved to $4.38 from $2.99 in 4Q20, beating the consensus of $3.98.
Adjusted EBITDA improved 37.2% Y/Y to $876.48 million, and margin expanded by 195 bps to 21.1%.
The total segment operating income increased by 57.8% Y/Y to $789.99 million, and the margin expanded by 411 bps to 19.9%. Adjusted segment operating margin expanded by 230 bps 22.2%
Parker-Hannifin generated a YTD operating cash flow of $2.58 billion, compared to $2.07 billion a year ago. In Q2, it made debt repayments of $184 million and retired all serviceable debt bringing the multiple of gross debt to EBITDA down to 2.1 times.
FY22 Outlook: Parker-Hannifin expects EPS of $14.08 to $14.88 and adjusted EPS of $16.20 to $17.00 vs. consensus of $17.08.
It expects organic sales growth of approximately 5% to 9% compared with the prior year.
Price Action: PH shares traded lower by 0.15% at $302.88 on the last check Thursday.

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