CLEVELAND - Parker-Hannifin Corporation (NYSE:PH), a global leader in motion and control technologies, announced a strong performance in its fiscal 2024 third quarter with adjusted earnings per share (EPS) reaching a record $6.51, surpassing analyst estimates by $0.39. The company's revenue aligned with expectations at $5.07 billion, consistent with the consensus estimate. Despite the earnings beat, shares of Parker-Hannifin remained unchanged in market response.
The company's sales saw a marginal increase from $5.06 billion in the third quarter of the previous fiscal year, with organic sales growing by 1%. The adjusted segment operating margin rose by 150 basis points to a record 24.7%.
The reported EPS of $5.56 showed a 10% increase from the $4.54 reported in the same quarter last year, while the adjusted EPS also saw a 10% increase from the prior year's $5.93.
Chairman and CEO Jenny Parmentier attributed the robust results to the strength of the company's portfolio and operational improvements, particularly noting the Aerospace Systems Segment's standout performance. "We produced record results this quarter across nearly all key metrics," Parmentier said. The company also reported a 20% increase in year-to-date cash flow from operations, reaching a record $2.1 billion.
Looking forward, Parker-Hannifin has raised its outlook for the fiscal year ending June 30, 2024. The company now expects an adjusted EPS range of $24.65 to $24.85, which is above the analyst consensus of $24.43. This updated guidance reflects confidence in continued strong performance, particularly citing double-digit organic growth in aerospace.
The company's financial strength was further evidenced by a 20% increase in year-to-date cash flow from operations, which now stands at 14.6% of sales. However, the Diversified Industrial Segment experienced a decline, with North American sales down 5% and International sales down 6%. In contrast, the Aerospace Systems Segment saw an 18% increase in sales, contributing significantly to the overall positive results.
Despite the positive earnings report, the stock's movement did not reflect investor reaction, remaining flat at a 0.0% change. This stability suggests that while the company's financial performance was solid, it may have been in line with market expectations.
Parker-Hannifin's financial results and forward-looking statements are based on known events and circumstances at the time of release and are subject to future unforeseen uncertainties and risks.
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