Parker-Hannifin Set to Report Q2 Earnings: Is a Beat in Store?

Parker-Hannifin Corporation PH is slated to release second-quarter fiscal 2025 (ended December 2024) results on Jan. 30, before market open.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for revenues is pegged at $4.8 billion, indicating a decline of 0.5% from the prior-year quarter’s number. The consensus mark for earnings is pinned at $6.22 per share, which has inched up a penny in the past 30 days. The figure indicates an increase of 1.1% from the year-ago quarter’s figure.The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 8.5%.Parker-Hannifin Corporation Price and EPS Surprise Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation QuoteLet’s see how things have shaped up for Parker-Hannifin this earnings season.Factors Likely to Have Shaped PH’s Quarterly PerformancePersistent strength in commercial and military end markets across both OEM and aftermarket channels is expected to have buoyed the Aerospace Systems segment’s revenues. Healthy demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities, is likely to have augmented its performance. Also, strength in its defense end market, owing to an increase in U.S. and international defense spending volumes, is likely to have been beneficial.The acquisition of Meggitt expanded its presence in the United Kingdom, positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems. The buyout is also expected to augment the Aerospace Systems segment’s results. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1.44 billion, indicating 10.2% growth from the year-ago number.Benefits from the Win Strategy, which focuses on innovation, strategic positioning and capital allocation policy, are expected to have aided PH’s margins in the fiscal second quarter. Notably, the Win strategy is the company’s business system that defines goals and initiatives, which enables long-term and sustainable growth.However, challenging conditions in the off-highway end market are expected to have hurt the Diversified Industrial segment’s performance. Softness across construction and agricultural sectors is likely to have weighed on both the North America and international businesses of the segment. Weakness in the transportation and energy end markets, owing to near-term delays in projects, is also likely to affect its results.The consensus estimate for the Diversified Industrial North America segment’s revenues is pinned at $1.96 billion, indicating a 7.1% decline year over year. The consensus mark for the Diversified Industrial International segment’s revenues is pegged at $1.37 billion, indicating a 2.4% decrease year over year.Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.Earnings WhispersOur proven model predicts an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.Earnings ESP: Parker-Hannifin has an Earnings ESP of +0.52% as the Most Accurate Estimate is pegged at $6.25 per share, higher than the Zacks Consensus Estimate of $6.22. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: PH presently carries a Zacks Rank of 3.Other Stocks With the Favorable CombinationHere are three other companies, which according to our model, have the right combination of elements to post an earnings beat this season.Dover Corporation DOV has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to release fourth-quarter results on Jan. 30. Dover’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.Flowserve Corporation FLS has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter results on Feb. 18.Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 10.8%.A. O. Smith Corporation AOS has an Earnings ESP of +0.93% and a Zacks Rank of 3 at present. The company is slated to release its fourth-quarter 2024 results on Jan. 30.AOS delivered an average earnings surprise of 0.3% in the last four quarters, while beating estimates twice and meeting and missing estimates once each.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks