Parker-Hannifin (PH) Q3 2027 earnings summary

Executive summary

• Q3 FY2017 sales were $3,119.1M, up 10.3% YoY; organic sales grew 5.7% and orders rose 8%.

• Net income rose to $238.8M from $187.1M; diluted EPS was $1.75 reported and $2.11 adjusted, versus $1.37 and $1.51.

• Adjusted segment operating margin reached 16.1%, up from 14.7%; FY2017 sales and EPS guidance increased as CLARCOR integration began.

Financial highlights

• Q3 gross profit was $735.3M versus $619.3M; operating income before interest and other expense was $414.6M versus $349.3M.

• Nine-month sales were $8,533.1M versus $8,403.6M; net income was $690.5M versus $565.3M, and diluted EPS was $5.09 versus $4.12.

• Q3 sales growth included 5.7% organic growth, 5.6% acquisition contribution and a 1% negative currency impact.

• Q3 realignment charges were $16.3M and CLARCOR acquisition-related expenses were $26.2M.

Outlook and guidance

• FY2017 sales guidance increased to $12.0B, with growth guidance of 4.9%–6.9%; midpoint growth comprises 1.9% organic growth, 5.1% acquisitions and a 1% currency reduction.

• FY2017 reported EPS guidance is $6.90–$7.20 and adjusted EPS guidance is $7.70–$8.00; adjusted guidance excludes $48M of realignment costs and $103M of CLARCOR expenses.

• Adjusted segment margin guidance is 15.6%–15.8%, reported margin guidance 14.7%–14.9%, and the expected tax rate is 27%.

• FY2017 segment outlook includes Diversified Industrial North America sales growth of 7%–9%, International growth of 5%–7%, and Aerospace sales flat to up 2%.