Friday, November 22, 2024

Parker-Hannifin boosts profit forecast on strong aerospace demand

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(Reuters) – Parker-Hannifin raised its full year profit forecast after posting a quarterly profit that exceeded Wall Street estimates on Thursday, driven by strong demand for its parts in the aerospace segment.

Aerospace suppliers are benefiting from a surge in product orders against a strong travel demand backdrop, even as the industry struggles with persistent supply chain issues.

Parker, which supplies aerospace parts such as airframes and engine components to planemakers including Boeing and Airbus, reported an adjusted first-quarter profit of $6.20 per share, surpassing analysts’ average estimate of $6.14, according to LSEG data.

The company’s aerospace segment saw sales rise to $1.45 billion, compared to the $1.23 billion it posted a year ago.

The Cleveland, Ohio-based company now expects full-year 2025 adjusted earnings per share between $26.35 and $27.05, up from its previous estimate of $26.30 to $27.00.

Parker said its updated outlook reflects recent divestitures in its Diversified Industrial Segment, but also warned of near-term pressure in some industrial markets.

Total sales rose about 1.2% to $4.9 billion, largely in line with analysts’ expectations.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Tasim Zahid)

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