Parker-Hannifin Delivers Robust Q1 FY24 Performance, Aerospace Segment Sales Soar

Parker-Hannifin Corp PH reported first-quarter FY24 sales growth of 15% year-over-year to $4.85 billion and +2% on an organic basis, missing the consensus of $4.88 billion.

Adjusted EPS improved to $5.96 from $4.74 in the first quarter of 2023, beating the consensus of $5.31.

Segment Sales: Diversified Industrial North America $2.23 billion (+4.6% Y/Y), Diversified Industrial International $1.39 billion (+2.5% Y/Y) and Aerospace Systems $1.23 billion (+64.7% Y/Y).

The total segment operating margin for the quarter was 22.3%, and on an adjusted basis, the segment operating margin expanded 220 bps YoY to 24.9%.

Adjusted EBITDA margin expanded to 24.8% from 23.3% in the first quarter of 2023.

Parker Hannifin’s operating cash flow for the quarter totaled $648.96 million, compared to $457.36 million in the first quarter of 2023. It held cash and equivalents of $448.93 million as of Sept. 30, 2023.

Orders increased 2% Y/Y, with a 4% decrease in Diversified Industrial North American businesses and an 8% decline in Diversified Industrial International businesses. 

Orders increased by 24% Y/Y in the Aerospace Systems Segment on a rolling 12-month average basis.

FY24 Guidance, Updated: Parker-Hannifin expected total sales growth of 2.5%-5.5% from the prior 3%-6%. Saw total segment operating margin in the range of 20%-20.4%, or 23.4%-23.8% on an adjusted basis.

PH raised its adjusted EPS expectation to $22.60-$23.40 from $21.90-$22.90 versus the consensus $22.62.

PH Price Action: Parker-Hannifin shares are trading higher by 8.49% at $401.94 on the last check Thursday.

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