(Reuters) – Motion and control technologies manufacturer Parker Hannifin raised its full-year profit forecast on Thursday, after sales of its aerospace systems almost doubled in the first quarter.
Shares of the company rose more than 4% to $386.06 in premarket trading.
Parker now expects annual earnings per share between $18.73 and $19.53, compared with its previous estimate of $18.05 to $19.05.
A worldwide rebound in travel demand following the pandemic has led to an aviation boom, powering demand for parts and components used in manufacturing jets.
The company’s aerospace systems segment, which makes flight control, hydraulic, fuel-inerting and thermal-management parts, posted quarterly sales growth of 90% to $1.3 billion.
It generated an operating income of $327.6 million, compared with $149.4 million a year ago.
The Cuyahoga, Ohio-based company reported an adjusted profit of $5.96 per share for the quarter ended Sept. 30, compared with $5.33 estimated by analysts, according to LSEG data.
The company, which caters to sectors ranging from industrial to aerospace, reported revenue of $4.85 billion, compared with estimates of $4.88 billion.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Devika Syamnath)
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