NYSE$PH

Parker-Hannifin Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record sales and record adjusted total segment operating margin, net income and EPS.

Parker Hannifin reported a record first quarter with sales increasing by 12% to $4.23 billion. The company's adjusted total segment operating margin increased by 70 basis points, and adjusted earnings per share reached a record of $4.74. The company has increased full year organic growth and adjusted EPS guidance.

  • Sales increased 12% to $4.23 billion; organic sales increased 14%.
  • Total segment operating margin was 19.8%, or 22.7% adjusted, an increase of 70 basis points.
  • Net income was $387.9 million, or $615.5 million adjusted.
  • EPS were $2.98, or $4.74 adjusted.

Headline financials

Total Revenue

$4.23B

Previous: $3.76B+12.5%
EPS (adj)

$4.74

Previous: $4.26+11.3%
Organic Sales Growth

14.2%

No prior period
Total Segment Operating Margin

19.8%

No prior period
Adjusted Total Segment Operating Margin

22.7%

No prior period
Capital Expenditures

-$83.6M

Previous: -$48.2M-73.3%
Free Cash Flow

$304M

Previous: $403M-24.5%
Net Income

$388M

Previous: $451M-14.0%
Operating Income

$787M

Previous: $694M+13.5%
Gross Profit

$1.44B

Previous: $1.05B+37.0%
Cash & Equivalents

$502M

Previous: $479M+5.0%
Total Assets

$30B

Previous: $20.2B+48.0%
Stock-Based Comp

$65M

Previous: $57.7M+12.7%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$4.23B

Q1 2023+12.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $746M total across 1 segment · Q1 2023

  • Aerospace Systems
    $746M+25.9%

Forward guidance

Parker's outlook for the fiscal year ending June 30, 2023 has been updated and now includes the acquisition of Meggitt plc and the divestiture of the Aircraft Wheel and Brake Division. The company expects fiscal 2023 organic sales growth to be in the range of 4.5% to 7.5% and earnings per share in the range of $12.85 to $13.55, or $18.60 to $19.30 on an adjusted basis.

Tailwinds

  • Integration of Meggitt is well underway
  • Excited about synergies from the combination of two companies
  • Benefit from the addition of Meggitt
  • Capitalize on secular growth trends
  • Win Strategy 3.0

Headwinds

  • Impact of the global outbreak of COVID-19
  • Changes in business relationships with major customers, suppliers or distributors
  • Disputes regarding contract terms or significant changes in financial condition
  • Legal and regulatory developments and changes
  • Uncertainties surrounding the ultimate resolution of outstanding legal proceedings

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.1%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

39 / 71 earnings

Positive

+11.2%

Q4 2024

Best reaction

-7.0%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.1%-7.9%-10.9%
Q2 2026+3.6%+5.2%+10.1%
Q1 2026+7.7%+10.8%+13.7%
Q3 2025+0.8%+1.5%+9.9%
Q2 2025+5.7%+3.6%+0.4%
Q1 2025+1.7%+4.7%+12.6%
Q4 2024+11.2%+11.5%+11.5%
Q3 2024-1.2%+1.3%-2.1%
Q2 2024+9.9%+10.1%+15.8%
Q1 2024+8.3%+9.9%+18.8%
Q4 2023+2.0%+4.7%+4.1%
Q3 2023+3.1%+4.9%+5.4%
Q2 2023+6.5%+6.2%+9.5%
Q1 2023+5.4%+5.5%+4.9%
Q4 2022+1.0%-0.1%-8.7%
Q3 2022-6.6%-8.5%-4.7%
Q2 2022-5.2%-4.7%-11.2%
Q1 2022+7.1%+8.4%+0.4%
Q4 2021-1.6%-1.5%-4.4%
Q3 2021-1.6%-1.6%-3.4%
Q2 2021+3.0%+1.6%+10.6%
Q1 2021+9.0%+19.8%+26.5%
Q4 2020+6.5%+12.3%+11.7%
Q3 2020-2.4%-2.1%+14.7%
Q2 2020-1.7%+3.6%-7.2%
Q1 2020+1.0%+2.4%+2.5%
Q4 2019-3.5%-4.6%-5.3%
Q3 2019-0.1%-3.7%-15.4%
Q2 2019-0.4%+0.7%+6.7%
Q1 2019+6.6%+10.2%+13.5%
Q4 2018+4.1%+5.1%+6.0%
Q3 2018-2.3%-0.2%+5.3%
Q2 2018-5.4%-7.2%-12.8%
Q1 2018+1.9%+1.9%+2.8%
Q4 2017-0.0%-1.6%-0.9%
Q3 2017-2.3%-3.1%-3.2%
Q2 2017+3.3%+1.7%+8.0%
Q1 2017-1.6%-0.8%+10.8%
Q4 2016+6.4%+7.2%+8.6%
Q3 2016+3.1%
Q2 2016+4.1%
Q1 2016+1.3%
Q4 2015-0.2%
Q3 2015-4.2%
Q2 2015-4.6%
Q1 2015+5.7%
Q4 2014-4.5%
Q3 2014+3.4%
Q2 2014-6.4%
Q1 2014+7.7%
Q4 2013-2.8%
Q3 2013-0.7%
Q2 2013+2.1%
Q1 2013-0.2%
Q4 2012-1.5%
Q3 2012+1.8%
Q2 2012+3.4%
Q1 2012-7.0%
Q4 2011+7.6%
Q3 2011-1.5%
Q2 2011-0.4%
Q1 2011-0.1%
Q4 2010+1.7%
Q4 2008+1.7%
Q3 2010-5.1%
Q3 2009-5.1%
Q2 2010-4.1%
Q2 2009-4.1%
Q4 2009+1.8%
Q1 2010+1.8%
Q1 2009+1.8%

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