Industrial motion control leader Parker Hannifin (PH) spooked the market on Friday, as investors took its earnings and guidance as the "Ghost of Industrial Reports Yet To Come". Although orders to Europe and Asia did indeed trail off throughout the December quarter and margins are a concern, history suggests this is more along the lines of a bump in the road. More to the point, with market leadership and a surprisingly consistent record of performance, value-oriented investors should keep a careful eye on this one.
Slower Motion In Q2
To be sure, Parker Hannifin's second quarter results were not the sort of beat-and-raise encouragement that a market already nervous about the industrial sector needed to see. Revenue rose about 8% (and the large majority of that organic), and that actually bested the average analyst guess. Reported sales growth was fueled by the North American industrial segment (up over 13%), while aerospace (up 8%), international industrial (up 6%), and climate/industrial controls (down 3%) trailed.
Please read the full piece here:
Europe Sneezes And Parker Hannifin Gets A Cold
No comments:
Post a Comment