Analyst Note| Joshua Aguilar |
Narrow moat rated Parker Hannifin had a very solid fiscal third quarter outing. On the heels of its outperformance, management raised both its top- and bottom-line guidance. Current full-year top-line guidance now stands at 4.5% year over year growth at the midpoint (implying a flat year over year organic sales guide), while adjusted EPS sits at $14.80 at the midpoint. Given Parker’s well-documented history of conservative guides and typical seasonality, we raise our own projections to 4.7% year over year in the firm’s reported top-line, and to $14.93 on an adjusted EPS basis. The latter figure sits just under the upper-bound range of management’s guidance for adjusted EPS.