Cleveland, Ohio-based Parker-Hannifin Corporation (PH) is a prominent built-up components & equipment company, conducting trade in the global industrial goods sector. The company produces control and motion technologies as well as systems that are traded across different aerospace, industrial and mobile marketplaces located around the world.
PH’s “Win Strategy,” which aims to measure excellence of customer service through efficient business and cash management schemes, continues to be one of its major strengths. Also, impressive performance of the company’s Aerospace System has been a key driver of growth over the past few quarter.
However, continuous strengthening of the U.S. dollar and sluggishness in key industrial end-markets of late have proved to be a major drag on the company’s financials of late.
This is especially true given the recent earnings estimate revisions for PH, as the consensus estimate has moved down to $1.85 from $1.88 in the last 30 days. Nevertheless, in the last four trailing quarters, PH has reported a positive average earnings surprise of 8.65%, beating the estimates thrice.
Currently, PH has a Zacks Rank #3 (Hold) but that could change following its fourth quarter fiscal 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: PH misses on earnings. Adjusted Earnings per share came in at $1.43, lower than the Zacks Consensus Estimate of $1.85.
Revenue: Revenues of $3,144.5 million came below the Zacks Consensus Estimate of $3,167 million.
Key Stats: PH witnessed a 9% decline in orders in the reported quarter. Orders declined in both Diversified Industrial Segment and Aerospace Systems. Also, the company experienced a surge in higher effective tax rate on account of changes in the geographic mix of pre-tax profits which reduced fiscal 2015 fourth quarter earnings by $0.30 per share.
Stock Price: Shares prices did not show any movement in the pre-market trading session.
Check back later for our full write up on this PH earnings report later!
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