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Friday, October 19, 2012

McDonald's Corporation (NYSE:MCD) & Parker-Hannifin Corporation (NYSE:PH) Tumble On Earnings


Parker-Hannifin Corporation(NYSE:PH) has posted poor results for the quarter and has also cut its annual forecast due to weak economic conditions.

For the quarter ended September 30, the net income of the company which makes control systems for manufacturing and transport industries fell 19 percent to $239.7 million or $1.50 a share.  Last year, the company had earned $297 million or $1.91 a share in the same quarter.  Analysts had expected the company to make $1.73 a share. The sales of the company fell from $3.23 billion to $3.21 billion.
The international industrial segment of the Cleveland based company performed badly.

 As the company is seeing a sharp drop in industrial orders, it expects its earnings this year to be weak.  It had earlier given guidance in the range of $7.10 to $7.90 a share, while analysts had estimated annual earnings of $7.50.  But the company has now revised its guidance and expects to make only $6.15 to $6.75 a share.

Parker shares dropped 7.60 percent to $78.62.

McDonald's Corporation(NYSE:MCD) has declared its results for the third quarter.  The net income has fallen 4 percent.  While the strong dollar hurt international income, severe competition hurt U.S. profits.
 The world’s largest hamburger chain earned a net income of $1.46 billion which works out to $1.43 a share, compared to $1.51 billion and $1.40 a share in the same quarter last year.  According to analyst estimates, the company should have earned $1.47 a share.  The strength in the dollar cost the company 8 cents a share.  Revenues in this quarter were flat at $7.15 billion; last year revenues were $7.17 billion and analysts had expected the same this year.

McDonald’s shares dropped $3.50 or 3.77 percent to $89.36.

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