- Parker-Hannifin Corp (NYSE:PH) reported third-quarter FY23 sales growth of 23.9% year-over-year to $5.06 billion and +12% on an organic basis, beating the consensus of $4.76 billion.
- Adjusted EPS improved to $5.93 from $4.38 in 3Q22, beating the consensus of $5.01.
- Segment Sales: Diversified Industrial North America $2.3 billion (+16% Y/Y), Diversified Industrial International $1.5 billion (+6% Y/Y), and Aerospace Systems $1.2 billion (+89% Y/Y).
- Total segment operating margin contracted to 18.8% from 20.3% in 3Q22 and, on an adjusted basis, expanded to 23.2% from 22.7%.
- EBITDA margin expanded to 22.4% from 15.7% last year, and the Adjusted margin expanded 160 bps to 24.2%.
- Parker Hannifin’s net cash provided by operating activities YTD totaled $1.79 billion, compared to $1.55 billion in 3Q22.
- It held cash and cash equivalent of $534.83 million as of March 31, 2023. The company reduced debt by $615 million in the quarter.
- Orders increased 2% Y/Y, with a 4% decrease in Diversified Industrial North America businesses and a 4% decline in Diversified Industrial International businesses.
- Orders increased by 25% Y/Y in the Aerospace Systems Segment on a rolling 12-month average basis.
- In April, PH Board raised its regular quarterly cash dividend by 11% to $1.48 per share over the previous quarterly cash dividend of $1.33. The dividend is payable June 2, 2023, to shareholders of record as of May 12, 2023.
- FY23 Guidance, raised: Parker-Hannifin expects organic sales growth to be ~10% (prior view 6%-8%). PH raised its Adjusted EPS forecast from $19.20-$19.70 to $20.60-$20.90 versus the $19.66 consensus.
- Price Action: PH shares are trading higher by 2.02% at $329.73 on the last check Thursday.
Sam Altman-Led OpenAI Refutes New York Times’ Allegations, Blames ‘Rare Bug’ For ChatGPT Regurgitating Content
OpenAI, led by Sam Altman, has responded to The New York Times' lawsuit, claiming that the newspaper's portrayal of their use of Times content in training AI is incomplete and that instances of verbatim text reproduction are a rare error.
