Earnings Preview: Parker-Hannifin

Parker-Hannifin (PH) is expected to report Q4 earnings before market open Thursday, July 31, with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for EPS of $1.50 on revenue of $3.23B. The consensus range is $1.40 to $1.55 for EPS, and $3.17B to $3.25B for revenue, according to First Call.

Analyst Views

The company had a good Q3 and beat estimates on EPS and revenue; the company also raised its FY08 guidance with it reported its Q3 results. Parker-Hannifin raised its FY08 EPS to $5.40 to $5.60 from $5.15 to $5.40 vs. consensus of $5.55. The consensus for FY08 EPS was $5.27, at the time the company raised its guidance.

On June 4, Parker-Hannifin was downgraded to Sell from Neutral at UBS. The firm said the risk/reward profile for owning Machinery stocks given macro challenges and valuations. Wachovia lowered its second half 2008 and 2009 estimates for Parker-Hannifin and several other companies in the Industrials/Automotive/Machinery sector, citing the weaker outlook and higher input costs.