Executive Summary
Overview of QQ3 2024: Parker Hannifin delivered a quarter characterized by resilient revenue and steady margin execution, underpinned by strong cash generation. Revenue reached $5.074B, up 0.25% year over year and 5.26% quarter over quarter, while gross margin held at 35.4% and operating margin at 19.8%. Net income rose 22.96% YoY to $726.6M and diluted EPS was $5.56, reflecting disciplined cost control and favorable product mix. EBITDA was $1.272B, with depreciation and amortization at $0.228B, signaling ongoing investment in capability alongside strong operating leverage.
Key Performance Indicators
Key Insights
Revenue: $5,074.36M; YoY change: +0.25%; QoQ change: +5.26%\nGross Profit: $1,797.72M; gross margin 35.43%; YoY change +4.46%; QoQ +4.02%\nOperating Income: $1,005.71M; operating margin 19.82%; YoY +10.69%; QoQ +7.50%\nNet Income: $726.57M; net margin 14.32%; YoY +22.96%; QoQ +6.56%\nEPS (reported): $5.65; EPS (diluted): $5.56; Weighted average shares: 128.50M (basic), 130.59M (diluted)\nEBITDA: $1,272.07M; EBITDA margin 25.07% (approx)\nCash Flow: Net cash from operating activities $795.09M; fr...
Financial Highlights
Revenue: $5,074.36M; YoY change: +0.25%; QoQ change: +5.26%\nGross Profit: $1,797.72M; gross margin 35.43%; YoY change +4.46%; QoQ +4.02%\nOperating Income: $1,005.71M; operating margin 19.82%; YoY +10.69%; QoQ +7.50%\nNet Income: $726.57M; net margin 14.32%; YoY +22.96%; QoQ +6.56%\nEPS (reported): $5.65; EPS (diluted): $5.56; Weighted average shares: 128.50M (basic), 130.59M (diluted)\nEBITDA: $1,272.07M; EBITDA margin 25.07% (approx)\nCash Flow: Net cash from operating activities $795.09M; free cash flow $715.88M; investing cash flow $(63.18)M; financing cash flow $(700.29)M; cash at end of period $405.48M.\nBalance Sheet: Total assets $29.58B; total liabilities $17.98B; total equity $11.59B; cash and equivalents $0.41B; net debt $10.97B; debt-to-capitalization ~0.495; interest coverage ~8.13x.\nCapital Allocation: Dividends paid $190.47M; share repurchases $(102.56)M; net debt and financing activity implying continued focus on value return with prudent leverage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.07B |
0.25% |
5.26% |
| Gross Profit |
1.80B |
4.46% |
4.02% |
| Operating Income |
1.01B |
10.69% |
7.50% |
| Net Income |
726.57M |
22.96% |
6.56% |
| EPS |
5.65 |
22.56% |
6.40% |
Key Financial Ratios
operatingProfitMargin
19.8%
operatingCashFlowPerShare
$6.19
freeCashFlowPerShare
$5.57
dividendPayoutRatio
26.2%
Management Commentary
No earnings call transcript data provided in the input. As such, management commentary and theme-based quotes could not be extracted from the transcript. Key insights below are drawn from the reported results and typical market context; please provide the transcript to enrich this section with verbatim management guidance and quotes.
Forward Guidance
No explicit forward guidance is included in the QQ3 2024 materials provided. Given the quarter’s margin stability and cash generation, the near-term drivers to watch include: (1) demand trajectory in diversified industrials and aerospace end-markets, (2) pricing realizations and mix as supply chains normalize, and (3) ongoing efficiency actions that sustain operating leverage. Investors should monitor backlogs, capex plans, and any guidance updates on aerospace programs, as well as potential tailwinds from volume/mix and price recovery in linear motion and control systems.