Parker-Hannifin beats by $0.25, beats on revs; raises FY17 EPS above consensus
- Reports Q3 (Mar) earnings of $2.11 per share, excluding non-recurring items, $0.25 better than the Capital IQ Consensus of $1.86; revenues rose 10.3% year/year to $3.12 bln vs the $3.03 bln Capital IQ Consensus.
- Diversified Industrial Segment: North American second quarter sales decreased 3% to $1.1 billion, and operating income increased 20% to $184.0 million compared with $153.6 million in the same period a year ago. International second quarter sales increased 1% to $1.0 billion, while operating income increased 34% to $127.5 million compared with $95.4 million in the same period a year ago.
Aerospace Systems Segment: Second quarter sales decreased 2% to $543.8 million, and operating income decreased 11% to $72.5 million compared with $81.8 million in the same period a year ago.
- Diversified Industrial Segment: North American second quarter sales decreased 3% to $1.1 billion, and operating income increased 20% to $184.0 million compared with $153.6 million in the same period a year ago. International second quarter sales increased 1% to $1.0 billion, while operating income increased 34% to $127.5 million compared with $95.4 million in the same period a year ago.
- Co issues upside guidance for FY17, sees EPS of $7.70-8.00 ($7.05-7.55), excluding non-recurring items, vs. $7.53 Capital IQ Consensus Estimate.
- "Our results reflect the hard work of Parker team members in better aligning our operational costs and execution of the new Win Strategy. We are increasing our organic growth forecast for the second half of the fiscal year from 2.3% to 3.3% at the midpoint in our new guidance. However, this increase in organic revenue is being offset by currency headwinds resulting in essentially flat full year reported annual sales growth versus fiscal 2016. We continue to deliver outstanding performance that positions us very well as we celebrate our 100th year as a company," said Chairman and CEO, Tom Williams.