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Mar 31, 2022
Parker-Hannifin Q3 2022 Earnings Report
Reported record sales and increased adjusted EPS guidance.
Key Takeaways
Parker-Hannifin reported record third-quarter sales of $4.09 billion, a 9% increase from the previous year. Adjusted earnings per share increased by 17% to a record $4.83. The company has updated its fiscal year 2022 adjusted EPS guidance to $18.00 to $18.30.
Sales increased 9% to $4.09 billion, with organic sales up 11%.
Segment operating margin was 20.3% as reported, or 22.7% adjusted.
Adjusted segment operating margin increased 130 bps vs. prior year.
EPS were $2.67 as reported, or $4.83 adjusted.
Parker-Hannifin
Parker-Hannifin
Parker-Hannifin Revenue by Segment
Revenue by Segment
Aerospace Systems Revenue
CapyFin.com Forward Guidance
For the fiscal year ending June 30, 2022, the company has updated guidance for earnings per share to the range of $13.00 to $13.30, or $18.00 to $18.30 on an adjusted basis. Guidance assumes organic sales growth of approximately 11% compared with the prior year. COVID-19 related shutdowns in China are estimated to reduce sales by $100 million and EPS by $0.24 in the fourth quarter.
Positive Outlook
- Expect to finish the year with a record level of financial performance.
- Solid foundation to achieve new five-year targets for fiscal year 2027.
- Continued progress being made towards meeting all the conditions required to complete the Meggitt acquisition.
- Ongoing transformation of our portfolio.
- Strong alignment with the positive secular trends of aerospace, digital, electrification and clean technologies.
Challenges Ahead
- Supply chain pressures.
- Labor pressures.
- Inflationary pressures.
- COVID-19 related shutdowns in China are estimated to reduce sales by $100 million in the fourth quarter.
- COVID-19 related shutdowns in China are estimated to reduce EPS by $0.24 in the fourth quarter.