Donaldson Earnings: Here’s Why Investors are Not Excited Now

Donaldson Company, Inc. (NYSE:DCI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.38%.

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Donaldson Company, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.46 in the quarter as EPS of $0.46 in the year-earlier quarter.

Revenue: Decreased 4.3% to $619.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Donaldson Company, Inc. reported adjusted EPS income of $0.46 per share. By that measure, the company missed the mean analyst estimate of $0.49. It missed the average revenue estimate of $659.41 million.

Quoting Management: “Our overall sales growth during the quarter continued to be challenged by the global economic environment,” said Bill Cook, Donaldson’s CEO. “On the positive side, our Gas Turbine Products’ sales increased 35 percent as we delivered a number of large projects to our Customers. We also achieved solid sales growth in several regions including Latin America, South Africa, and India. But these strong performances were offset by significant declines in our Engine Products’ OEM businesses in the U.S. and Japan. During the quarter, we continued to see many of our major OEM On-Road and Off-Road Customers reduce their equipment production schedules in response to their weaker end-market demand.”

Key Stats (on next page)…

Revenue increased 3.92% from $596.04 million in the previous quarter. EPS increased 35.29% from $0.34 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.51 and has not changed. For the current year, the average estimate has moved down from a profit of $1.76 to a profit of $1.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]