It's been a good week for Parker-Hannifin Corporation (NYSE:PH) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.1% to US$707. It looks like a credible result overall - although revenues of US$4.7b were what the analysts expected, Parker-Hannifin surprised by delivering a (statutory) profit of US$7.25 per share, an impressive 37% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Parker-Hannifin

Taking into account the latest results, Parker-Hannifin's 17 analysts currently expect revenues in 2025 to be US$20.0b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$24.36, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.2b and earnings per share (EPS) of US$23.20 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$747, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Parker-Hannifin at US$865 per share, while the most bearish prices it at US$500. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Parker-Hannifin's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Parker-Hannifin's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 9.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Parker-Hannifin is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Parker-Hannifin following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Parker-Hannifin's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$747, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Parker-Hannifin going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Parker-Hannifin that you need to take into consideration.

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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.