Parker-Hannifin Clocks 12% Revenue Growth In Q2; Raises FY22 Guidance

Parker-Hannifin Corp PH reported second-quarter FY22 sales growth of 12% year-over-year to $3.82 billion and +13% on an organic basis, beating the consensus of $3.72 billion.
Adjusted EPS improved to $4.46 from $3.45 in 2Q21, beating the consensus of $3.91.
Parker Hannifin generated a YTD operating cash flow of $1.01 billion, compared to $1.35 billion a year ago.
Segment Sales: Diversified Industrial North America $1.81 billion (+15% Y/Y), Diversified Industrial International $1.40 billion (+11% Y/Y) and Aerospace Systems $618.4 million (+6% Y/Y).
Orders increased 12% Y/Y, with a 17% increase in Diversified Industrial North America businesses, and +14% in Diversified Industrial International businesses. Orders decreased 7% in the Aerospace Systems Segment on a rolling 12-month average basis.
Adjusted EBITDA improved 22% Y/Y to $868.76 million, and margin expanded by 185 bps to 22.7%.
The total segment operating income increased by 25.5% Y/Y to $743.77 million, and the margin expanded by 200 bps to 19.4%. Adjusted segment operating margin expanded by 120 bps to 21.6%.
FY22 Outlook: Parker Hannifin increased FY22 guidance for adjusted EPS to $17.80 - $18.30 (prior expectation $16.95 - $17.65) vs. consensus of $17.63.
Guidance assumes organic sales growth of ~10% - 12% (prior view ~7% - 10%)
Price Action: PH shares traded lower by 1.73% at $314.18 on the last check Thursday.

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