Parker Hannifin Profit Tops Estimates

(RTTNews) - Motion and control technologies provider Parker Hannifin Corp. (PH), Wednesday reported a higher second-quarter profit, helped by joint-venture related gains, better gross margins, and a modest growth in sales. While quarterly earnings topped Wall Street estimates, sales fell shy of expectations.

Moving forward, Parker maintained the midpoint of its adjusted earnings outlook for 2014, which is indicated to miss current analysts' estimates. Parker shares are currently down nearly 4 percent on the New York Stock Exchange.

CEO Don Washkewicz said, "With continued positive order growth and modestly improved macro-economic trends, we remain optimistic about stronger operating performance in the second half of fiscal year 2014."

Parker makes motion and control technologies for mobile, industrial, and aerospace applications.

Cleveland, Ohio-based Parker posted quarterly net income to shareholders of $253 million or $1.66 per share, compared with $181 million or $1.19 per share last year.

Results for the recent quarter include a joint venture gain of $1.68 per share and asset write downs of $1.26 per share.

Excluding items, adjusted earnings for the quarter were $190 million or $1.24 per share.

On average, 17 analysts polled by Thomson Reuters expected the company to report a profit of $1.23 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the second quarter edged up 1.3 percent to $3.11 billion from $3.07 billion in the prior year. Analysts anticipated revenues of $3.15 billion for the quarter.

On an organic basis, sales for the quarter were up 3.1 percent.

At diversified industrial Segment, North American sales increased 0.6 percent and international sales climbed 4.7 percent. At its smaller segment of Aerospace Systems, sales slid 4.7 percent.

For fiscal year 2014, Parker Hannifin expect adjusted earnings in the range of $6.20 to $6.60 per share, while analysts currently estimate a profit of $6.57 per share.

Parker Hannifin is trading at $122.01, down $4.81 or 3.79%, on a volume of 870 thousand shares.