Parker-Hannifin Corp ( PH ) reported third-quarter fiscal 2024 sales growth of 0.3% year-over-year to $5.07 billion and +1% on an organic basis, beating the consensus of $5.06 billion.

Orders were flat YoY, with a 4% decrease in Diversified Industrial North American businesses and an 8% decline in Diversified Industrial International businesses. 

Orders increased by 15% Y/Y in the Aerospace Systems Segment on a rolling 12-month average basis.

Adjusted EPS improved to $6.51 from $5.93 in the third quarter of 2023, beating the consensus of $6.12.

Segment Sales: Diversified Industrial North America $2.23 billion (-4.7% Y/Y), Diversified Industrial International $1.43 billion (-5.9 Y/Y), and Aerospace Systems $1.41 billion (+17.9% Y/Y).

Adjusted EBITDA margin expanded by 130 bps to 25.5%. The total segment operating margin for the quarter was 21.5%, up 265 bps YoY, and on an adjusted basis, the segment operating margin expanded 144 bps Y/Y to 24.7%.

Parker-Hannifin’s operating cash flow year-to-date totaled $2.147 billion, compared to $1.79 billion in the comparable period. It held cash and equivalents of $415.4 million as of March-end.

“We are increasing our outlook for fiscal 2024 based on the strong third quarter performance delivered by our team members and double-digit organic growth in aerospace. Parker remains well positioned to continue producing record performance and creating shareholder value by executing The Win Strategy,” commented Chairman and Chief Executive Officer Jenny Parmentier.

Last month, Parker-Hannifin ( PH ) Board declared a quarterly cash dividend of $1.63 per share to shareholders of record as of May 10 and payable June 7. The dividend represents a 10% increase over the previous quarterly cash dividend of $1.48 per share.

2024 Outlook, updated: The company raised its adjusted EPS expectation to $24.65 to $24.85 (prior $23.90-$24.50) versus the consensus of $24.43.

Parker-Hannifin ( PH ) revised the total sales growth outlook to ~4% (from the prior 3% to 5%) and segment operating margin to ~24.6% on an adjusted basis. Sees Free cash flow of ~$3 billion.

Price Action: PH shares are trading lower by 2.77% At $527.94 at the last check Thursday.