Fueled by strong global demand for its industrial products, Parker Hannifin (NYSE:PH) reported on Thursday a 120.9% improvement in second-quarter profit, however its shares slid more than 4% as traders booed the worse-than-expected results.
The maker of motion and control technologies posted net income of $231.8 million, or $1.39 a share, compared with $105 million, or 64 cents a share, in the same quarter last year, but missing the Street’s view of $1.30.
Revenue for the Cleveland, Ohio-based company was $2.9 billion, up 21.7% from $2.4 billion a year ago, ahead of average analyst estimates polled by Thomson Reuters of $2.74 billion.
Sales were led by its industrial North America and International segments, both up about 23% to $1 billion. Parker Hannifin’s aerospace unit climbed 14.7% to $459.6 million, while its climate and industrial controls segment grew 22.6% to $214.3 million.
Parker Hannifin CEO Don Washkewicz attributed the improvements to strong levels of demand across many markets. Total orders grew 29%.
“We were able to deliver sales increases in every segment, as total organic sales increased 22%,” he said. “This was another quarter that demonstrated our ability to leverage our strong revenue performance into increased operating margins and earnings.”
Given the strong first-half results, the company increased its full-year earnings guidance to the range of $5.80 to $6.20 a share.