Parker Hannifin Q4 Results Miss Estimates, Guides 2015 Below View

(RTTNews) - Fluid power systems manufacturer Parker Hannifin Corp. (PH) reported Tuesday a profit for the fourth quarter that grew 11 percent from last year, reflecting sales growth. However. both adjusted earnings per share and quarterly revenues missed analysts' expectations. The company also issued earnings guidance for the full-year 2015, below Street view.

The Cleveland, Ohio-based company reported net income of $301.04 million or $1.98 per share for the fourth quarter, higher than $271.16 million or $1.78 per share in the prior-year quarter.

Excluding restructuring expenses, adjusted net income for the quarter was $314.03 million or $2.06 per share, compared to $274.52 million or $1.78 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $2.07 per share in the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 2.8 percent to a record of $3.53 billion from $3.43 billion in the same quarter last year, but missed twelve Wall Street analysts' consensus estimate of $3.57 billion. Adjusted total net sales, excluding sales related to GE joint venture last year, grew 4.4 percent.

Industrial North American business reported a 4.0 percent sales growth to $1.53 billion from last year, and the industrial international business generated $1.38 billion in sales, a 3.1 percent increase over last year.

Sales for the company's aerospace business edged down 0.4 percent to $617.62 million from the year-ago quarter. Meanwhile, adjusted net sales for the aerospace business, excluding sales related to GE joint venture last year, grew 8.6 percent.

Parker Hannifin's total orders for the fourth quarter grew 4 percent from last year, this being the fourth consecutive quarter of year-over-year positive order growth.

"Fiscal 2014 was a transitional year as we worked through the most significant restructuring in our history. I am proud that our global team was able to stay focused and still deliver record sales and strong earnings and cash flow for the year, which included record fourth quarter operating cash flow," Chairman, President and CEO Don Washkewicz said in a statement.

Looking ahead to fiscal 2015, the company expects adjusted earnings in a range of $7.25 to $8.05 per share, excluding anticipated restructuring expenses of about $0.25 per share. Street is currently looking for full-year 2015 earnings of $8.12 per share.

"In fiscal year 2015, we anticipate generally stable macroeconomic conditions. As always, we will stay the course by executing the Win Strategy, which has helped us deliver consistent results and are poised to deliver another year of record earnings performance for Parker," Washkewicz added.

In Wednesday's regular trading session, PH is currently trading at $110.05, down $4.97 or 4.32% on a volume of 1,610 shares.