NYSE$PH

Parker-Hannifin Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Parker-Hannifin's Q3 2023 performance showcased record sales and adjusted segment operating margin, EBITDA margin, net income, and EPS.

Parker-Hannifin reported record third-quarter sales of $5.1 billion, a 24% increase year-over-year, with organic sales up 12%. The company achieved a net income of $590.9 million, or $771.9 million adjusted, and EPS of $4.54, or $5.93 adjusted. Strong demand and the integration of Meggitt contributed to the positive results.

  • Record sales of $5.1 billion, a 24% increase year-over-year.
  • Adjusted segment operating margin increased by 50 bps to 23.2%.
  • Net income reached $590.9 million, or $771.9 million adjusted.
  • Adjusted EPS increased 23% to a record $5.93.

Headline financials

Total Revenue

$5.06B

Previous: $4.09B+23.9%
EPS (adj)

$5.93

Previous: $4.83+22.8%
Capital Expenditures

-$273M

Previous: -$159M-71.6%
Free Cash Flow

$318M

Previous: $189M+68.2%
Net Income

$591M

Previous: $348M+69.8%
Operating Income

$907M

Previous: $774M+17.2%
Gross Profit

$1.72B

Previous: $1.16B+48.6%
Cash & Equivalents

$535M

Previous: $468M+14.4%
Total Assets

$30.5B

Previous: $22.5B+35.4%
Stock-Based Comp

$27.8M

Previous: $30.4M-8.5%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$5.06B

Q3 2023+23.9%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $1.19B total across 1 segment · Q3 2023

  • Aerospace Systems
    $1.19B+88.9%

Forward guidance

Parker has increased its outlook for organic sales and earnings per share for the fiscal year ending June 30, 2023. The company expects fiscal 2023 organic sales growth to be approximately 10% and earnings per share in the range of $14.75 to $15.05, or $20.60 to $20.90 on an adjusted basis.

Tailwinds

  • Organic sales growth expected to be approximately 10%.
  • Earnings per share expected in the range of $14.75 to $15.05.
  • Adjusted earnings per share expected in the range of $20.60 to $20.90.
  • Continued execution of The Win Strategy™.
  • Synergies from the Meggitt acquisition supporting performance.

Headwinds

  • Impact of the global outbreak of COVID-19 and governmental actions.
  • Changes in business relationships with major customers, suppliers, or distributors.
  • Uncertainties surrounding the timing and integration of acquisitions.
  • Potential supply chain and labor disruptions.
  • Global economic factors, including inflation and interest rates.

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 2023

Historical avgQ3 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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