No Material Surprises During Parker’s Third Quarter as We Maintain Fair Value

We see no reason to change our fair value estimate of $325 following narrow-moat-rated Parker Hannifin's fiscal third-quarter results. Sales of $4.09 billion (up 9% year on year, or 11% on an organic basis) during the quarter marginally exceeded our expectations by just over $30 million, while adjusted EPS of $4.83 (up 17% year on year) was right in line with what we were forecasting during the quarter. Because of the difficult operating environment, we marginally decreased our full-year sales expectations by just under $60 million (now $15.76 billion), but we did lift adjusted EPS by 11 cents to $18.30 (less than a 1% variance from before) and kept adjusted segment operating margins roughly the same.