- Parker-Hannifin not only beat fiscal second quarter expectations by an impressive margin, management raised guidance pretty significantly.
- Parker isn't the same short-cycle industrial name it used to be, but short-cycle markets like autos, heavy machinery, and machine tools can still drive strong recovery growth.
- Management's efforts to improve the business, including more reinvestment and product development for growth markets (like life sciences) and cost reduction/efficiency, are truly impressive.
- Parker's improvements support more robust growth expectations and valuation multiples relative to the past, but the prospective returns are still not great at today's price.
For further details see:
Parker-Hannifin Offering Short-Cycle Leverage, But A Whole Lot More Too