Parker Hannifin raises profit forecast after order growth
Oct 18 (Reuters) - Parker Hannifin Corp reported a better-than-expected quarterly profit and raised its full-year earnings forecast as orders rose for its control systems used in manufacturing and transport.
Parker shares rose nearly 7 percent to a record high in morning trading.
The company, which also makes flight control, hydraulic and engine systems for the aerospace market, said orders rose 5 percent in the first quarter.
"This was a good quarter following some concerns after several European industrial companies reported disappointing results," Credit Suisse analyst Jamie Cook wrote in a client note.
Parker said the current quarter would benefit from a larger-than-expected gain of $1.68 per share related to a venture with GE Aviation. The joint venture makes fuel nozzles for commercial aircraft engines.
Parker raised its forecast for full-year earnings from continuing operations to $7.78-$8.38 per share from $7.35-$8.15.
However, analysts said that if the gain from the joint venture was to be factored out, the midpoint of Parker's new forecast - $6.40 per share - would be below market estimates.
Analysts on average were expecting a 2014 profit of $6.53 per share, according to Thomson Reuters I/B/E/S.
Parker shares were up 5 percent at $112.41 on the New York Stock Exchange. They touched a high of $113.81.
The stock has gained about a third in the past 12 months and has outperformed the S&P 500 index.