Parker-Hannifin Stok Gains On Q1 Earnings Beat, Raised FY22 Guidance

Parker Hannifin Corp PH reported first-quarter FY22 sales growth of 16.5% year-over-year to $3.76 billion and +16% on an organic basis, beating the consensus of $3.64 billion.
Adjusted EPS improved to $4.26 from $3.05 in 1Q21, beating the consensus of $3.68.
Segment Sales: Diversified Industrial North America $1.79 billion (+17.4% Y/Y), Diversified Industrial International $1.38 billion (+21.9% Y/Y) and Aerospace Systems $592.66 million (+3.4% Y/Y).
Orders increased 26% Y/Y, with a 32% increase in Diversified Industrial North America businesses, +25% in Diversified Industrial International businesses. Orders improved 16% in the Aerospace Systems Segment on a rolling 12-month average basis.
Adjusted EBITDA improved 28.7% Y/Y to $833.03 million, and margin expanded by 210 bps to 22.1%.
The total segment operating income increased by 37% Y/Y to $743.13 million, and the margin expanded by 290 bps to 19.7%. Adjusted segment operating margin expanded by 210 bps to 22%.
Parker Hannifin generated a YTD operating cash flow of $424.36 million, compared to $737.37 million a year ago.
FY22 Outlook: Parker Hannifin increased FY22 guidance for adjusted EPS to $16.95 - $17.65 (prior view $16.20 - $17.00) vs. consensus of $16.90.
Guidance assumes organic sales growth of ~7% - 10% (prior view 5% - 9%).
Price Action: PH shares are trading higher by 6.88% at $324.99 on the last check Thursday.

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