Parker-Hannifin Q3 Earnings Beat, Aerospace Systems Sales Up Y/Y

Parker-Hannifin Corporation PH reported third-quarter fiscal 2025 (ended March 2025) adjusted earnings (excluding 43 cents from non-recurring items) of $6.94 per share, which beat the Zacks Consensus Estimate of $6.73. The bottom line jumped 7% year over year.Total sales of $4.96 billion missed the consensus estimate of $5 billion. The top line decreased 2% year over year. Organic sales grew 1%. Orders grew 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)PH’s Segmental DetailsThe Diversified Industrial segment’s sales totaled $3.25 billion, representing 68.3% of total sales. On a year-over-year basis, the segment’s sales decreased 7.6%.Sales from Diversified Industrial North America totaled $2.03 billion, down 9% year over year. The Zacks Consensus Estimate was pegged at $2.05 billion. Diversified International sales were $1.36 billion, down 5.3% year over year. The consensus mark was pegged at $1.36 billion.Orders for Diversified Industrial North America increased 3% year over year, while Diversified Industrial International orders increased 11% on a year-over-year basis.The Aerospace Systems segment generated sales of $1.57 billion, which accounted for 31.7% of total sales. Sales jumped 11.6% year over year, thanks to aftermarket sales growth in both commercial and defense markets. The Zacks Consensus Estimate was pegged at $1.56 billion. Orders for the Aerospace Systems unit increased 14% on a year-over-year basis.Parker-Hannifin Corporation Price, Consensus and EPS Surprise Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation QuotePH’s Margin ProfileParker-Hannifin’s cost of sales was $3.13 billion, down 4.6% year over year. Selling, general and administrative expenses decreased 3.9% from the prior year to $784.4 million.Adjusted total segment operating income increased 5.7% year over year to $1.15 billion. Adjusted total segment operating margin increased 170 basis points year over year to 23.2%.PH’s Balance Sheet & Cash FlowExiting the fiscal third quarter, Parker-Hannifin had cash and cash equivalents of $408.7 million compared with $422 million at the end of fiscal 2024. Long-term debt was $7.42 billion compared with $7.16 billion at the end of fiscal 2024.In the first nine months of fiscal 2025, Parker-Hannifin generated net cash of $2.31 billion from operating activities compared with $2.15 billion in the year-ago period.Capital spending totaled $304.2 million in the first nine months of the fiscal year compared with $283.3 million in the year-ago period.Parker-Hannifin paid out cash dividends of $630.2 million, up 10.3% year over year.PH’s Fiscal 2025 Guidance IssuedParker-Hannifin has updated its fiscal 2025 guidance. The company now expects total sales to increase approximately 1% year over year compared with 2% decrease - 1% increase anticipated before. Organic sales are projected to increase approximately 1% compared with an increase of 2% expected earlier. Its adjusted operating margin is estimated to be approximately 25.9%.Parker-Hannifin currently expects adjusted earnings to be in the band of $26.60-$26.80 per share compared with $26.40-$27.00 expected earlier. The Zacks Consensus Estimate for adjusted earnings is pegged at $26.74 per share.PH’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other CompaniesAZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valmont Industries, Inc. (VMI): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks