Parker Hannifin Corporation Reports First Quarter Fiscal 2025 Results
Cleveland, Oct. 31, 2024 - Parker Hannifin Corporation (NYSE: PH), a global leader in motion and control technologies, reported its financial results for the first quarter of fiscal 2025 ending September 30, 2024.
Financial Metrics Summary
| Metric | Current Quarter (Q1 FY2025) | Year-over-Year Comparison | Wall Street Consensus |
|---|---|---|---|
| Total Revenue | $4.9 billion | ↑ 1.2% | $4.9 billion |
| Earnings Per Share (EPS) | $5.34 | ↑ 7% | $6.14 |
| Adjusted Earnings Per Share | $6.20 | ↑ 4% | — |
Parker's total revenue met the Wall Street consensus estimate of $4.9 billion, marking a 1.2% rise year-over-year. Earnings per share (EPS) showed a 7% increase from the previous year, although they fell short of the consensus estimate at $6.14.
Revenue Performance by Segment
| Segment | Performance Highlights |
|---|---|
| Diversified Industrial | Achieved record adjusted segment operating margin; ongoing softness in Europe; growth in Asia |
| Aerospace Systems | Registered record sales and adjusted operating margin; strong aftermarket sales growth in both commercial and defense markets |
The Diversified Industrial segment set a record for adjusted segment operating margin, leveraging strong performances in Asia despite softness in European markets. Meanwhile, the Aerospace Systems segment achieved record-breaking sales and margins, driven by robust aftermarket sales in various markets.
Key Developments and Operational Highlights
- Record Results: Achieved records in sales, adjusted segment operating margin, adjusted EPS, and cash flow.
- Strategy Execution: Exemplified through The Win Strategy™, yielding solid financial outcomes.
- Order Rates: International orders turned positive thanks to improvements in Asia; aerospace orders remained strong.
Comments from Company Officers
CEO Jenny Parmentier highlighted the company's robust first-quarter performance and raised its outlook for segment operating margin and EPS. She noted the transformed portfolio's strength, specifically mentioning the excellent results in the Aerospace Systems segment. The company anticipates continued pressure in certain industrial markets but foresees accelerating growth in aerospace, committing to long-term fiscal targets.
Forward Guidance
Parker Hannifin adjusted its fiscal year projections to account for divestitures in its Diversified Industrial segment, expecting total sales growth between 0.5% and 3.5%. They predict the segment operating margin will reach approximately 22.6%, with EPS expected to rise to between $22.78 and $23.48, or $26.35 to $27.05 on an adjusted basis.
Stock Price Movement
Post-earnings release, Parker Hannifin's stock experienced a slight decline of 0.13%.
In summary, Parker Hannifin's first-quarter results reflected a solid execution of its strategic initiatives, strong segment performances, and an optimistic outlook for the remainder of fiscal 2025.
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