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Mar 31, 2023

Parker-Hannifin Q3 2023 Earnings Report

Parker-Hannifin's Q3 2023 performance showcased record sales and adjusted segment operating margin, EBITDA margin, net income, and EPS.

Key Takeaways

Parker-Hannifin reported record third-quarter sales of $5.1 billion, a 24% increase year-over-year, with organic sales up 12%. The company achieved a net income of $590.9 million, or $771.9 million adjusted, and EPS of $4.54, or $5.93 adjusted. Strong demand and the integration of Meggitt contributed to the positive results.

Record sales of $5.1 billion, a 24% increase year-over-year.

Adjusted segment operating margin increased by 50 bps to 23.2%.

Net income reached $590.9 million, or $771.9 million adjusted.

Adjusted EPS increased 23% to a record $5.93.

Total Revenue
$5.06B
Previous year: $4.09B
+23.9%
EPS
$5.93
Previous year: $4.83
+22.8%
Gross Profit
$1.72B
Previous year: $1.16B
+48.6%
Cash and Equivalents
$535M
Previous year: $468M
+14.4%
Free Cash Flow
$632M
Previous year: $490M
+29.0%
Total Assets
$30.5B
Previous year: $22.5B
+35.4%

Parker-Hannifin

Parker-Hannifin

Parker-Hannifin Revenue by Segment

Forward Guidance

Parker has increased its outlook for organic sales and earnings per share for the fiscal year ending June 30, 2023. The company expects fiscal 2023 organic sales growth to be approximately 10% and earnings per share in the range of $14.75 to $15.05, or $20.60 to $20.90 on an adjusted basis.

Positive Outlook

  • Organic sales growth expected to be approximately 10%.
  • Earnings per share expected in the range of $14.75 to $15.05.
  • Adjusted earnings per share expected in the range of $20.60 to $20.90.
  • Continued execution of The Win Strategyâ„¢.
  • Synergies from the Meggitt acquisition supporting performance.

Challenges Ahead

  • Impact of the global outbreak of COVID-19 and governmental actions.
  • Changes in business relationships with major customers, suppliers, or distributors.
  • Uncertainties surrounding the timing and integration of acquisitions.
  • Potential supply chain and labor disruptions.
  • Global economic factors, including inflation and interest rates.