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Parker-Hannifin beats quarterly estimates on steady aircraft aftermarket demand

Published 08/08/2024, 08:37 AM
Updated 08/08/2024, 08:40 AM
© Reuters.
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(Reuters) - Parker-Hannifin (NYSE:PH) on Thursday beat Wall Street's fourth-quarter profit and revenue estimates on sustained strength in demand for its aircraft systems and components, sending its shares up 9% premarket.

The company's aerospace systems segment, which serves both commercial and military manufacturers, saw a 19.2% annual increase in quarterly sales, driven by robust demand for original equipment and aftermarket services from related end markets.

This comes in the backdrop of plane manufacturers and business jet makers continuing to rack up orders despite ongoing supply chain issues and delivery delays, on the back of a post-pandemic travel boom.

This offset the impact of a 4.1% fall in its larger diversified industrial segment sales due to slowing demand in North America for Parker's transportation and off-highway products, softening demand in Europe and a sluggish macro recovery in China.

Total net sales for the quarter of $5.19 billion came above analysts' estimates of $5.08 billion, as per LSEG data.

For the quarter ended June 30, the motion and control systems maker reported a quarterly adjusted profit of $6.77 per share, compared with estimates of $6.22 per share.

The Cleveland Ohio-based company posted a full-year 2024 adjusted profit of $25.44 per share, and set a 2025 adjusted profit forecast ranging $26.30 to $27.00 per share.

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