Earnings To Watch: Parker-Hannifin (PH) Reports Q3 Results Tomorrow

Industrial machinery company Parker-Hannifin (NYSE:PH) will be reporting results tomorrow before market open. Here’s what to look for.

Parker-Hannifin beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $5.19 billion, up 1.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

Is Parker-Hannifin a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Parker-Hannifin’s revenue to grow 1.1% year on year to $4.9 billion, slowing from the 14.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.14 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Parker-Hannifin has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.

Looking at Parker-Hannifin’s peers in the gas and liquid handling segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ITT delivered year-on-year revenue growth of 7.7%, meeting analysts’ expectations, and Flowserve reported revenues up 3.5%, in line with consensus estimates. Flowserve traded up 2.4% following the results.

Read our full analysis of ITT’s results here and Flowserve’s results here.

Investors in the gas and liquid handling segment have had steady hands going into earnings, with share prices flat over the last month. Parker-Hannifin’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $679.90 (compared to the current share price of $625.11).

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