It's been a good week for Parker-Hannifin Corporation (NYSE:PH) shareholders, because the company has just released its latest third-quarter results, and the shares gained 5.1% to US$642. It looks like a credible result overall - although revenues of US$5.0b were what the analysts expected, Parker-Hannifin surprised by delivering a (statutory) profit of US$7.37 per share, an impressive 28% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Parker-Hannifin's 20 analysts are now forecasting revenues of US$20.6b in 2026. This would be a credible 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.7% to US$25.83 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.8b and earnings per share (EPS) of US$25.77 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Parker-Hannifin
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$708. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Parker-Hannifin analyst has a price target of US$850 per share, while the most pessimistic values it at US$500. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Parker-Hannifin's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2026 being well below the historical 9.5% p.a. growth over the last five years. Compare this to the 183 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.7% per year. Factoring in the forecast slowdown in growth, it looks like Parker-Hannifin is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$708, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Parker-Hannifin analysts - going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Parker-Hannifin you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.