Parker-Hannifin (NYSE:PH) reported Q4 EPS of $5.16, $0.48 better than the analyst estimate of $4.68. Revenue for the quarter came in at $4.19 billion versus the consensus estimate of $4.07 billion.
Outlook:
Parker announced its outlook for the fiscal year ending June 30, 2023 and noted that its outlook excludes the pending acquisition of Meggitt plc. The company expects fiscal 2023 organic sales growth to be in the range of 2% to 5% and earnings per share in the range of $16.13 to $16.93, or $18.10 to $18.90 on an adjusted basis. Included in the outlook is an expected first quarter fiscal 2023 interest expense of $0.25 per share related to the Meggitt acquisition.
Fiscal year 2023 is adjusted for expected business realignment expenses of approximately $35 million and acquisition-related intangible asset amortization of approximately $300 million. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release. The company will hold an investor call to review the Meggitt acquisition and update fiscal 2023 guidance shortly after the closing.
Williams added, “We are expecting another record year for Parker in fiscal 2023, adding to our consistent run of annual financial performance improvements. We are confident in achieving our fiscal 2027 financial targets that would put us among the top quartile of our proxy peer companies. We look forward to the completion of the Meggitt acquisition soon and welcoming their talented team to Parker as we significantly expand our aerospace business. Our strategy, including a continued portfolio transformation, have positioned Parker for significant margin expansion opportunities supported by exciting secular trends, including aerospace, digital transformation, electrification and clean technologies that will drive organic growth. We are very well positioned to deliver on a promising future.”