Parker-Hannifin Q4 Results Beat Street Expectations, Provides FY23 Guidance

Parker-Hannifin Corp PH reported fourth-quarter FY22 sales growth of 6% year-over-year to $4.19 billion and +10% on an organic basis, beating the consensus of $4.06 billion.
Adjusted EPS improved to $5.16 from $4.38 in 4Q21, beating the consensus of $4.67.
Segment Sales: Diversified Industrial North America $2.09 billion (+14.5% Y/Y), Diversified Industrial International $1.42 billion (-5.4% Y/Y) and Aerospace Systems $676.21 million (+7.3% Y/Y).
Adjusted segment operating margin expanded by 70 bps to 22.9%. Adjusted EBITDA margin expanded by 100 bps to 23.1%.
Parker Hannifin generated an operating cash flow of $2.44 billion in FY22, compared to $2.57 billion a year ago. It held cash and cash equivalent of $6.65 billion as of June 30, 2022.
Orders increased 3% Y/Y, with a 10% increase in Diversified Industrial North America businesses and -4% in Diversified Industrial International businesses. Orders were flat in the Aerospace Systems Segment on a rolling 12-month average basis.
FY23 Guidance: Parker-Hannifin expects sales growth of 0%-3% and 2%-5% on an organic basis.
It expects an adjusted segment operating margin of 22.3% -22.7%, EPS of $16.13-$16.93, and adjusted EPS of $18.10-$18.90.
Price Action: PH shares are trading higher by 1.88% at $295.50 on the last check Thursday.

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