NYSE$PH

Parker-Hannifin Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported all-time quarterly records for net income, EPS, and segment operating margins, driven by sustainable performance improvements and strong demand.

Parker Hannifin reported strong Q3 2021 results, achieving record net income, EPS, and segment operating margins. The company benefited from effective integration of acquisitions, broad-based execution of The Win Strategy™, and increased order rates. They also increased full year guidance.

  • Net income reached a record $471.6 million, with EPS at $3.59 as reported, or $4.11 adjusted.
  • EBITDA margin was 21.6% as reported, or 21.8% adjusted.
  • Total segment operating margin was 19.0% as reported, or 21.4% adjusted.
  • Order rates increased by 6%, indicating positive demand inflection.

Headline financials

Total Revenue

$3.75B

Previous: $3.7B+1.2%
EPS (adj)

$4.11

Previous: $2.92+40.8%
Capital Expenditures

-$136M

Previous: -$183M+25.4%
Free Cash Flow

$336M

Previous: $185M+81.6%
Net Income

$472M

Previous: $367M+28.4%
Operating Income

$665M

Previous: $536M+24.2%
Gross Profit

$1.03B

Previous: $936M+10.2%
Cash & Equivalents

$490M

Previous: $698M-29.8%
Total Assets

$19.8B

Previous: $20.4B-2.6%
Stock-Based Comp

$22.1M

Previous: $18.8M+17.5%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$3.75B

Q3 2021+1.2%vs Q3 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $599M total across 1 segment · Q3 2021

  • Aerospace Systems
    $599M-19.6%

Forward guidance

The company increased its full year guidance for earnings per share to a range of $12.96 to $13.26, or $14.65 to $14.95 on an adjusted basis, assuming organic sales are flat compared to the prior year.

Tailwinds

  • Strong year-to-date performance
  • Positive outlook for macroeconomic conditions
  • Continued execution of the Win Strategy
  • Progress towards achieving long-term financial targets
  • Positioning among the top-quartile of peer group of diversified industrial companies

Headwinds

  • Expected business realignment expenses of approximately $50 million
  • Costs to achieve of approximately $13 million
  • Acquisition-related intangible asset amortization of approximately $324 million
  • Gain on the sale of land of approximately $101 million
  • Guidance assumes organic sales are flat compared with the prior year.

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 Q3 2021

Historical avgQ3 2021

+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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