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Parker-Hannifin Corporation PH is slated to release second-quarter fiscal 2025 (ended December 2024) results on Jan. 30, before market open.
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The Zacks Consensus Estimate for revenues is pegged at $4.8 billion, indicating a decline of 0.5% from the prior-year quarter’s number. The consensus mark for earnings is pinned at $6.22 per share, which has inched up a penny in the past 30 days. The figure indicates an increase of 1.1% from the year-ago quarter’s figure.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 8.5%.
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation Quote
Let’s see how things have shaped up for Parker-Hannifin this earnings season.
Factors Likely to Have Shaped PH’s Quarterly Performance
Persistent strength in commercial and military end markets across both OEM and aftermarket channels is expected to have buoyed the Aerospace Systems segment’s revenues. Healthy demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities, is likely to have augmented its performance. Also, strength in its defense end market, owing to an increase in U.S. and international defense spending volumes, is likely to have been beneficial.
The acquisition of Meggitt expanded its presence in the United Kingdom, positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems. The buyout is also expected to augment the Aerospace Systems segment’s results. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1.44 billion, indicating 10.2% growth from the year-ago number.
Benefits from the Win Strategy, which focuses on innovation, strategic positioning and capital allocation policy, are expected to have aided PH’s margins in the fiscal second quarter. Notably, the Win strategy is the company’s business system that defines goals and initiatives, which enables long-term and sustainable growth.
However, challenging conditions in the off-highway end market are expected to have hurt the Diversified Industrial segment’s performance. Softness across construction and agricultural sectors is likely to have weighed on both the North America and international businesses of the segment. Weakness in the transportation and energy end markets, owing to near-term delays in projects, is also likely to affect its results.
The consensus estimate for the Diversified Industrial North America segment’s revenues is pinned at $1.96 billion, indicating a 7.1% decline year over year. The consensus mark for the Diversified Industrial International segment’s revenues is pegged at $1.37 billion, indicating a 2.4% decrease year over year.
Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.