Motion and control technologies producer Parker-Hannifin Corporation (PH) said Tuesday that its first quarter earnings rose 12% from last year, beating Wall Street’s view, and lifted both its full-year outlook and its quarterly dividend payout.

The Cleveland-based company reported first quarter net income of $312.1 million, or $2.01 per share, compared with $279.6 million, or $1.68 per share, in the year-ago period.

Revenue rose 5% from last year to $3.39 billion.

On average, Wall Street analysts expected a much smaller profit of $1.71 per share, on lower revenue of $3.27 billion.

Looking ahead, PH boosted its full-year earnings outlook to a range of $7.30 to $7.50 per share, up from a prior forecast of $6.90 to $7.30. Analysts currently expect $6.37 per share for the year.

In a separate announcement, the company raised its quarterly dividend payout by 5.1% to 41 cents per share (up from 39 cents). The new dividend will be paid on June 1, 2012, to shareholders of record as of May 10.

Parker-Hannifin shares rose $2.37, or +2.9%, in premarket trading Tuesday.

The Bottom Line
Shares of Parker-Hannifin (PH) will now have a 2.03% dividend yield, based on the higher dividend payout and last night’s closing stock price of $80.94. The stock has technical support in the $75 price area. If the shares can firm up, we see overhead resistance around the $85-$91 price levels.

Parker-Hannifin Corporation (PH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

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