Management expects -3% to 0% sales growth not positive at all. Now here comes the interesting part, the company issued guidance for Fiscal 2020 that looks like there will be little growth. In fact for FY2019 the company saw records in revenue, earnings, and free cash flow which signals it is still operating fundamentally strong. However, the company is still integrating acquisitions as well as taking on new ones to help it continue the record performance it is recognizing in earnings. While this normally would signal trouble in the business, much of this is due to a general weakening in the global macro-economic environment. Orders increased 10% in the Aerospace Systems Segment on a rolling 12-month average basis.Orders decreased 8% in the Diversified Industrial International businesses.Orders decreased 4% in the Diversified Industrial North America businesses.The company highlighted the following decreased in each division. The company saw a decline in revenue which was impacted by a decrease in orders and currency translations as well as a divestiture. Parker-Hannifin recently reported earnings that beat expectations but missed slightly on the top line. This should produce positive returns for investors, hopefully for the next 25 years as well. In the long term, the company has a strategy that should position it to continue being the dominant player in each of the industries it operates in. With recent earnings showing the company is doing fairly well, I decided to add shares to my portfolio on the pullback. The company touches lives in a variety of ways and yet is not a familiar name to most consumers. The company has continued to grow its presence in a variety of industries which has quietly made it a consortium of sorts. In an investment in this conglomerate 25 years ago would have led to a 1183% return, not too shabby. The company was founded in 19117 and has quietly raised its dividend for 62 years in a row. Parker-Hannifin Corporation ( NYSE: PH) is one of the least talked about dividend kings I know of.
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