Donaldson Earnings: What Investors Need to Know

Donaldson Company, Inc. (NYSE:DCI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Donaldson Company, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.26% to $0.49 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Decreased 3.63% to $633 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Donaldson Company, Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.45. It beat the average revenue estimate of $620.54 million.

Quoting Management: “While global economic conditions in many of our end markets remained challenging, we delivered record fourth quarter net income and earnings per share,” said Bill Cook, Donaldson’s CEO. “Our overall sales were down from the fourth quarter of last year primarily due to our Engine Products OEM businesses in the U.S. and Asia and our Industrial Products businesses. However, we also had a number of businesses and regions that saw year-over-year increases. Our Engine Aftermarket sales increased 3 percent from last year and have now grown sequentially for the second straight quarter. Regionally, we achieved strong local currency sales growth in Latin America, India, and our European Engine business in the quarter.”

Key Stats (on next page)…

Revenue increased 2.2% from $619.37 million in the previous quarter. EPS increased 6.52% from $0.46 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.4 to a profit $0.39. For the current year, the average estimate is a profit of $1.62, which is the same with that ninety days ago.

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

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