Analyst Note| Joshua Aguilar |
Narrow-moat-rated Parker Hannifin had a very solid fiscal second quarter that outperformed our expectations. We raise our fair value estimate to $328 from $325, due solely to time value of money, somewhat offset by a higher share repurchase price assumption. During the quarter, total revenue rose over 22% on a reported basis to $4.675 billion or 11% on an organic basis. Organic sales results were led by the diversified industrial segment, which grew in double-digits in both North America and international, though North America led the way. Results were broad-based, however, as all businesses grew their top line organically (aerospace grew organic revenue midsingle digits).