Loading...
•
Dec 31, 2019
Parker-Hannifin Q2 2020 Earnings Report
Parker-Hannifin's financial performance was strong, marked by record sales and solid cash flow, despite macroeconomic challenges and acquisition-related costs.
Key Takeaways
Parker-Hannifin reported fiscal 2020 second quarter results with record sales of $3.50 billion. EPS was $1.57 as reported, or $2.54 adjusted. The company increased its fiscal 2020 full year guidance.
Sales reached a second quarter record at $3.50 billion.
Reported EPS was $1.57, with an adjusted EPS of $2.54.
Total segment operating margin was 13.9% as reported, or 15.8% adjusted.
Cash flow from operations was a Q2 YTD record at $826.0 million, representing 12.1% of sales.
Revenue by Segment
Forward Guidance
For the fiscal year ending June 30, 2020, the company has increased guidance for earnings per share to the range of $8.78 to $9.38, or $10.25 to $10.85 on an adjusted basis. Guidance assumes an organic sales decline in the range of 7.6% to 5.1%.
Positive Outlook
- Company has increased guidance for earnings per share to the range of $8.78 to $9.38.
- Adjusted forecasted earnings per diluted share is expected to be $10.25 to $10.85.
- The Win Strategy actions have strengthened Parker's operations.
- Parker is positioned for a strong second half of fiscal 2020.
- The company is optimistic about reaching targeted financial goals for fiscal 2023.
Challenges Ahead
- Guidance assumes an organic sales decline in the range of 7.6% to 5.1%.
- Expected business realignment expenses of approximately $40 million.
- Costs to achieve of approximately $27 million.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...