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Sep 30, 2023

Parker-Hannifin Q1 2024 Earnings Report

Parker-Hannifin's Q1 2024 performance was marked by record sales and adjusted EPS growth, driven by operational excellence and strategic portfolio management.

Key Takeaways

Parker-Hannifin reported a 15% increase in sales to $4.8 billion for the first quarter of fiscal year 2024. Adjusted earnings per share increased by 26% to $5.96. The company has raised its guidance for fiscal year 2024 based on this strong start.

Sales increased 15% to $4.8 billion.

Organic sales increased 2%.

Adjusted EPS increased 26% to a record $5.96.

Company increased outlook for segment operating margin and EPS.

Total Revenue
$4.85B
Previous year: $4.23B
+14.5%
EPS
$5.96
Previous year: $4.74
+25.7%
Organic Sales Growth
2.3%
Previous year: 14.2%
-83.8%
Gross Profit
$1.75B
Previous year: $1.44B
+21.8%
Cash and Equivalents
$449M
Previous year: $502M
-10.6%
Free Cash Flow
$552M
Previous year: $374M
+47.7%
Total Assets
$29.6B
Previous year: $30B
-1.2%

Parker-Hannifin

Parker-Hannifin

Parker-Hannifin Revenue by Segment

Forward Guidance

Parker Hannifin updated its outlook for the fiscal year ending June 30, 2024. The company expects total sales growth in the range of 2.5% to 5.5%; total segment operating margin in the range of 20.0% to 20.4%, or 23.4% to 23.8% on an adjusted basis; and earnings per share in the range of $18.73 to $19.53, or $22.60 to $23.40 on an adjusted basis.

Positive Outlook

  • Total sales growth expected in the range of 2.5% to 5.5%.
  • Adjusted total segment operating margin expected in the range of 23.4% to 23.8%.
  • Adjusted earnings per share expected in the range of $22.60 to $23.40.
  • Focus remains on being the safest industrial company in the world.
  • Priorities coupled with favorable secular growth trends will help accelerate performance.

Challenges Ahead

  • Changes in business relationships with major customers, suppliers or distributors.
  • Disputes regarding contract terms or significant changes in financial condition.
  • Uncertainties surrounding timing, successful completion or integration of acquisitions.
  • Potential supply chain and labor disruptions, including as a result of labor shortages.
  • Global economic factors, including manufacturing activity, air travel trends and currency exchange rates.