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With a market cap of $72.2 billion, Parker-Hannifin Corporation (PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. Founded in 1917, the Cleveland, Ohio-based company operates through the Diversified Industrial and Aerospace Systems segments. The company is expected to announce its Q3 results on Thursday, May 1.
Ahead of the event, analysts expect PH to report a profit of $6.73 per share, up 3.4% from the year-ago quarter's profit of $6.51 per share. Moreover, the company has surpassed analysts' earnings estimates in each of the past four quarters. In the previous quarter, it reported EPS of $6.53, which surpassed the consensus estimate by approximately 5%.
For the full fiscal 2025, analysts expect PH to report an EPS of $26.74, up 5.1% from $25.44 in fiscal 2024. Additionally, in fiscal 2026, its earnings are expected to grow nearly 8% year-over-year to $28.87 per share.
Over the past year, PH shares have gained 3.8%, underperforming the S&P 500 Index’s ($SPX) 5.4% returns, while slightly outpacing the Industrial Select Sector SPDR Fund’s (XLI) 3.5% uptick over the same time frame.
PH shares surged 5.7% following its Q2 earnings release on Jan. 30. The company reported a 1.6% year-over-year decrease in its sales, which amounted to $4.7 billion and failed to beat the analyst estimates. However, the company posted a 110 bps increase in its adjusted segment operating margin, amounting to 25.6% and driving its EPS to surpass consensus estimates. Additionally, the PH’s year-to-date cash from operations rose 24% year-over-year to $1.7 billion, showcasing its operational excellence.
The consensus view on PH stock is strongly bullish, with a "Strong Buy" rating overall. Among 19 analysts covering the stock, opinions include 15 "Strong Buys," one “Moderate Buy,” and three "Holds." Its mean price target of $724.28 implies a premium of 29.1% from its prevailing price level.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
