NYSE$PH

Parker-Hannifin Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Parker Hannifin reported record sales and adjusted EPS, driven by strong execution and portfolio transformation.

Parker Hannifin reported a record fourth quarter with sales increasing by 6% to $4.19 billion. Adjusted EPS increased by 18% to a record of $5.16. The company also issued guidance for fiscal year 2023, expecting continued growth and financial performance improvements.

  • Sales increased 6% to a record of $4.19 billion; organic sales increased 10%.
  • Total segment operating margin was 20.9%, or a record 22.9% adjusted.
  • EPS were $0.99, or a record of $5.16 adjusted.
  • Orders increased 3% for total Parker.

Headline financials

Total Revenue

$4.19B

Previous: $3.96B+5.8%
EPS (adj)

$5.16

Previous: $4.38+17.8%
Organic Sales Growth

10.0%

No prior period
Total Segment Operating Margin

20.9%

No prior period
Adjusted Total Segment Operating Margin

22.9%

No prior period
Capital Expenditures

$71.2M

Previous: $73.9M-3.7%
Free Cash Flow

$822M

Previous: $620M+32.7%
Net Income

$129M

Previous: $505M-74.5%
Operating Income

$806M

Previous: $790M+2.0%
Gross Profit

$1.21B

Previous: $1.13B+7.2%
Cash & Equivalents

$536M

Previous: $733M-26.9%
Total Assets

$25.9B

Previous: $20.3B+27.5%
Stock-Based Comp

$27.3M

Previous: $19.6M+39.5%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$4.19B

Q4 2022+5.8%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $676M total across 1 segment · Q4 2022

  • Aerospace Systems
    $676M+7.3%

Forward guidance

Parker announced its outlook for the fiscal year ending June 30, 2023 and noted that its outlook excludes the pending acquisition of Meggitt plc. The company expects fiscal 2023 organic sales growth to be in the range of 2% to 5% and earnings per share in the range of $16.13 to $16.93, or $18.10 to $18.90 on an adjusted basis.

Tailwinds

  • Expecting another record year for Parker in fiscal 2023.
  • Confident in achieving fiscal 2027 financial targets.
  • Strategy has positioned Parker for significant margin expansion opportunities.
  • Exciting secular trends, including aerospace, digital transformation, electrification and clean technologies that will drive organic growth.
  • Well positioned to deliver on a promising future.

Headwinds

  • Outlook excludes the pending acquisition of Meggitt plc.
  • Expected first quarter fiscal 2023 interest expense of $0.25 per share related to the Meggitt acquisition.
  • Fiscal year 2023 is adjusted for expected business realignment expenses of approximately $35 million.
  • Acquisition-related intangible asset amortization of approximately $300 million.
  • The company will hold an investor call to review the Meggitt acquisition and update fiscal 2023 guidance shortly after the closing.

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 2022

Historical avgQ4 2022

+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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