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Dec 31, 2022

Parker-Hannifin Q2 2023 Earnings Report

Parker-Hannifin reported record sales, record adjusted net income, and record adjusted EPS.

Key Takeaways

Parker-Hannifin reported a strong second quarter in fiscal year 2023, with record sales of $4.67 billion, a 22% increase from the previous year. Adjusted net income was $618.9 million, and adjusted EPS reached a record $4.76. The company has increased its full-year organic growth and adjusted EPS guidance.

Sales increased 22% to $4.67 billion; organic sales increased 10%.

Total segment operating margin was 15.3%, or 21.5% adjusted.

Net income was $395.2 million, or $618.9 million adjusted.

EPS were $3.04, or $4.76 adjusted.

Total Revenue
$4.68B
Previous year: $3.83B
+22.2%
EPS
$4.76
Previous year: $4.46
+6.7%
Total Segment Operating Margin
15.3%
Adjusted Total Segment Operating Margin
21.5%
Organic Sales Growth
10.3%
Gross Profit
$1.44B
Previous year: $1.06B
+35.7%
Cash and Equivalents
$756M
Previous year: $449M
+68.2%
Free Cash Flow
$517M
Previous year: $524M
-1.4%
Total Assets
$30.5B
Previous year: $22.4B
+36.3%

Parker-Hannifin

Parker-Hannifin

Parker-Hannifin Revenue by Segment

Forward Guidance

Parker expects another year of record performance in fiscal 2023. They anticipate $300 million of synergies from the Meggitt acquisition and remain committed to fiscal year 2027 financial targets.

Positive Outlook

  • Expects fiscal 2023 organic sales growth to be in the range of 6% to 8%.
  • Forecasted earnings per diluted share to be in the range of $13.50 to $14.00.
  • Adjusted forecasted earnings per diluted share to be in the range of $19.20 to $19.70.
  • Plans to deliver $300 million of synergies from the acquisition of Meggitt.
  • Remains committed to fiscal year 2027 financial targets.