2023-05-04 08:15:40 ET
Parker Hannifin’s ( NYSE: PH ) stock rose Thursday after the maker of industrial parts reported fiscal third-quarter results that beat the average estimates of Wall Street analysts. Shares advanced 2.7% in premarket trading.
The company’s Q3 profit jumped 70% to $590.9 million, or $4.54 a share, from $348 million, or $2.67 a share, a year earlier.
Adjusted earnings that exclude one-time items of $5.93 a share beat the consensus estimate of $5.01 a share.
Revenue advanced 24% to $5.06 billion from $4.09 billion, compared with the analyst estimate of $4.78 billion.
The company’s aerospace unit increased sales by 89% from a year earlier to $1.2 billion in the quarter, while operating income rose 13% to $133.9 million. On an adjusted basis, operating income was $281.3 million, or about 24% of sales.
Parker Hannifin is among the manufacturers that are seeing greater demand in the aerospace industry as air travel rebounds with the end of pandemic lockdowns.
“This was an outstanding quarter for Parker, driven by our engaged team that continues to deliver record financial performance,” Jenny Parmentier, chief executive of Parker Hannifin, said in a statement.
Higher Guidance
Parker Hannifin increased its guidance for full-year organic sales growth of 10% from the prior forecast for 6% to 8%.
The company now expects earnings of $14.75 to $15.05 a share, up from its previous guidance for $13.50 to $14 a share. Adjusted earnings are expected to be $20.60 to $20.90 a share, compared with prior estimates of $19.20 to $19.70 a share.
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Parker Hannifin rises after EPS beats estimates on aerospace strength