NYSE$PH

Parker-Hannifin Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Parker Hannifin reported Q4 2020 earnings, with EPS of $2.27 as reported, or $2.55 adjusted. Sales were $3.16 billion compared to $3.68 billion in the prior year quarter.

Parker Hannifin's Q4 2020 results showed resilience amidst the COVID-19 pandemic, with adjusted total segment operating margin at 17.4% and adjusted EBITDA margin at 20.4%. Full-year cash flow from operations reached a record $2.07 billion. The company issued FY21 EPS guidance in the range of $7.41 to $8.41, or $9.80 to $10.80 on an adjusted basis.

  • Fourth quarter EPS were $2.27 as reported, or $2.55 adjusted.
  • Fourth quarter total segment operating margin was 15.8% as reported, or 17.4% adjusted.
  • Fourth quarter EBITDA margin was 18.7% as reported, or 20.4% adjusted.
  • Full year cash flow from operations was an all-time record at $2.1 billion, or 15.1% of sales.

Headline financials

Total Revenue

$3.16B

Previous: $3.68B-14.1%
EPS (adj)

$2.55

Previous: $3.31-23.0%
Total Segment Operating Margin

15.8%

No prior period
Adjusted Total Segment Operating Margin

17.4%

No prior period
Capital Expenditures

$50.1M

Previous: $50M+0.1%
Free Cash Flow

$730M

Previous: $588M+24.3%
Net Income

$296M

Previous: $414M-28.5%
Operating Income

$501M

Previous: $550M-9.0%
Gross Profit

$803M

Previous: $942M-14.7%
Cash & Equivalents

$686M

Previous: $3.22B-78.7%
Total Assets

$19.7B

Previous: $17.6B+12.3%
Stock-Based Comp

$19.5M

Previous: $19.6M-0.2%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$3.16B

Q4 2020-14.1%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $624M total across 1 segment · Q4 2020

  • Aerospace Systems
    $624M-8.0%

Forward guidance

Parker Hannifin expects the global COVID-19 pandemic to continue negatively affecting economic activity in fiscal 2021. The company will manage costs, preserve cash, and position itself for economic recovery, aiming to achieve long-term targets for sales growth, margins, earnings growth, and cash flow.

Tailwinds

  • Portfolio improvement through transformative acquisitions
  • Continued execution of The Win Strategy™
  • Near-term actions to reduce costs and preserve cash
  • Maintaining manufacturing capacity across the enterprise
  • Committed to achieving long-term targets

Headwinds

  • Global COVID-19 pandemic will continue to have a negative effect on economic activity in fiscal 2021.
  • Expected business realignment expenses of approximately $65 million
  • Costs to achieve of approximately $19 million
  • Acquisition-related intangible asset amortization of approximately $321 million
  • Guidance assumes an organic sales decline in the range of 13% to 9%

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 Q4 2020

Historical avgQ4 2020

+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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