US$1,134 - That's What Analysts Think Parker-Hannifin Corporation (NYSE:PH) Is Worth After These Results

It's been a good week for Parker-Hannifin Corporation (NYSE:PH) shareholders, because the company has just released its latest full-year results, and the shares gained 10.0% to US$1,074. Parker-Hannifin reported US$21b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$28.48 beat expectations, being 4.6% higher than what the analysts expected. 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.

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Taking into account the latest results, the consensus forecast from Parker-Hannifin's 22 analysts is for revenues of US$23.0b in 2027. This reflects a reasonable 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.7% to US$31.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$22.6b and earnings per share (EPS) of US$30.64 in 2027. 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.

View our latest analysis for Parker-Hannifin

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.0% to US$1,134. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Parker-Hannifin, with the most bullish analyst valuing it at US$1,358 and the most bearish at US$680 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 6.9% growth on an annualised basis. That is in line with its 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.9% annually. It's clear that while Parker-Hannifin's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Parker-Hannifin analysts - going out to 2029, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Parker-Hannifin you should be aware of.

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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.