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Cleveland, Ohio-based Parker-Hannifin Corporation (PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. Valued at $82.1 billion by market cap, Parker-Hannifin operates through Diversified Industrial and Aerospace Systems segments.
The industrial sector giant is expected to announce its second-quarter results on Thursday, Feb. 6. Ahead of the event, analysts expect Parker-Hannifin to report a non-GAAP profit of $6.21 per share, marginally up from $6.15 per share reported in the year-ago quarter. The company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter increased 4% year-over-year to $6.20, exceeding analysts’ estimates by 1.1%.
For fiscal 2025, PH is expected to deliver an adjusted EPS of $26.77, up 5.2% from $25.44 in fiscal 2023. While in fiscal 2026, its earnings are expected to surge 9.6% year-over-year to $29.34 per share.
PH stock prices have soared 40.6% over the past 52 weeks, substantially outperforming the S&P 500 Index’s ($SPX) 22.1% gains and the Industrial Select Sector SPDR Fund’s (XLI) 19.9% surge during the same time frame.
Parker-Hannifin’s stock prices gained 1.6% after the release of its Q1 results on Oct. 31. The company reported a modest 1.2% year-over-year growth in net sales to $4.9 billion. While demand softness in Europe led to a 2.4% decline in international business sales to nearly $1.4 billion and continued softness in transportation and off-highway markets led to a 5.8% drop in North American business sales to $2.1 billion, the robust aftermarket sales growth in commercial and defense markets contributed to a staggering 17.8% year-over-year surge in Aerospace Systems’ segment sales to a record $1.5 billion, boosting investor confidence.
Furthermore, Aerospace Systems' adjusted operating margin expanded 190 basis points compared to the year-ago quarter to 27.9%, translating into a 26.3% year-over-year growth in adjusted operating income to $403 million for the segment.
The consensus opinion on PH stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 18 analysts covering the stock, 15 recommend “Strong Buy,” one advises “Moderate Buy,” and two suggest a “Hold” rating. Its mean price target of $763.05 indicates a 17.9% upside potential from current price levels.
