NYSE$PH

Parker-Hannifin Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Parker-Hannifin's Q4 2023 results were reported, showcasing record sales and adjusted EPS, driven by the strength of the aerospace business and operational improvements.

Parker-Hannifin reported a record fourth quarter with sales of $5.1 billion, a 22% increase year-over-year. Adjusted earnings per share reached a record of $6.08, and the company reduced debt by $846 million during the quarter. The aerospace business showed remarkable growth, contributing significantly to the overall strong performance.

  • Sales increased 22% to a record $5.1 billion; organic sales increased 6%.
  • Total segment operating margin was 22.1%, or a record 24.0% adjusted.
  • EPS were $5.44, or a record of $6.08 adjusted.
  • Debt reduction of $846 million was achieved in the quarter.

Headline financials

Total Revenue

$5.1B

Previous: $4.19B+21.7%
EPS (adj)

$6.08

Previous: $5.16+17.8%
Capital Expenditures

$108M

Previous: $71.2M+51.9%
Free Cash Flow

$1.08B

Previous: $822M+31.0%
Net Income

$709M

Previous: $129M+450.3%
Operating Income

$1.13B

Previous: $806M+40.0%
Gross Profit

$1.83B

Previous: $1.21B+51.8%
Cash & Equivalents

$475M

Previous: $536M-11.3%
Total Assets

$30B

Previous: $25.9B+15.5%
Stock-Based Comp

$25.2M

Previous: $27.3M-7.8%

Revenue & EPS history

Parker-Hannifin · Revenue · Quarterly

$5.1B

Q4 2023+21.7%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Parker-Hannifin · $1.28B total across 1 segment · Q4 2023

  • Aerospace Systems
    $1.28B+89.7%

Forward guidance

Parker expects total sales growth in the range of 3% to 6%; total segment operating margin in the range of 19.7% to 20.1%, or 23.0% to 23.4% on an adjusted basis; and earnings per share in the range of $18.05 to $19.05, or $21.90 to $22.90 on an adjusted basis for fiscal year 2024.

Tailwinds

  • Total sales growth in the range of 3% to 6%
  • Total segment operating margin in the range of 19.7% to 20.1%, or 23.0% to 23.4% on an adjusted basis
  • Earnings per share in the range of $18.05 to $19.05, or $21.90 to $22.90 on an adjusted basis
  • Opportunities to accelerate performance through execution of the Win StrategyTM 3.0
  • Continued progress toward fiscal 2027 financial targets

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 2023

Historical avgQ4 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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