Released on November 2, 2023, Parker Hannifin Corp (PH, Financial)'s earnings report for the first quarter of fiscal 2024 shows a strong performance. The company reported record sales of $4.8 billion, a 15% increase compared to $4.2 billion in the first quarter of fiscal 2023. The net income was $650.8 million, a significant increase from $387.9 million in the prior year quarter. Adjusted net income was $776.4 million, a 26% increase compared to $615.5 million in the first quarter of fiscal 2023.
Financial Highlights
Earnings per share (EPS) were $4.99, compared to $2.98 in the first quarter of fiscal 2023. Adjusted earnings per share increased by 26% to $5.96 compared to $4.74 in the prior year quarter. The company's year-to-date cash flow from operations in fiscal 2024 was $650.0 million, or 13.4% of sales, compared to $457.4 million, or 10.8% of sales, in the prior year.
CEO Commentary
“This was another standout quarter for Parker and a reflection of how well our global team members continue to drive operational excellence throughout our business," said Chief Executive Officer Jenny Parmentier. “With a continued focus on improvement through execution of The Win Strategy™ and our transformed portfolio we are consistently driving strong performance. We achieved record performance with all segments delivering adjusted operating margins above 24%. This quarter marks the one year anniversary of Meggitt joining Parker, which helped contribute to an outstanding quarter for the Aerospace Systems segment. Our strategy is working and will continue to drive shareholder value.”
Segment Results and Outlook
The Diversified Industrial Segment reported a 5% increase in North American first quarter sales to $2.2 billion and a 2.5% increase in International first quarter sales to $1.4 billion. The Aerospace Systems Segment reported a 65% increase in first quarter sales to $1.2 billion. The company expects total sales growth in fiscal 2024 to be in the range of 2.5% to 5.5%.
Financial Tables Summary
The Consolidated Statement of Income shows net sales of $4,847,488 in Q1 2024, up from $4,232,775 in Q1 2023. The net income attributable to common shareholders was $650,827 in Q1 2024, a significant increase from $387,854 in Q1 2023. The reconciliation of organic growth shows a sales growth of 14.5% in Q1 2024, compared to 12.5% in Q1 2023.
Explore the complete 8-K earnings release (here) from Parker Hannifin Corp for further details.
