Earnings Alerts

Donaldson Co (DCI) Earnings: 1Q Adjusted EPS Surpasses Estimates with Strong Performance

By December 3, 2024 No Comments
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  • Donaldson’s first-quarter adjusted earnings per share (EPS) exceeded analyst expectations at 83 cents, with predictions at 82 cents.
  • Actual EPS for the quarter was 81 cents after accounting for restructuring and other charges.
  • Gross margin slightly missed estimates, coming in at 35.5% compared to the expected 35.7%.
  • Net sales reached $900.1 million, surpassing the forecast of $893.5 million.
  • Mobile Solutions sales outperformed expectations, achieving $572.4 million versus the anticipated $562.9 million.
  • Industrial Solutions sales marginally lagged at $257.6 million against the $259.2 million estimate.
  • Life Sciences sales were slightly below projections, with $70.1 million compared to the expected $70.8 million.
  • Donaldson maintains its adjusted full-year EPS forecast (excluding first-quarter restructuring charges) between $3.56 and $3.72, aligning with prior guidance.
  • Industrial sales are projected to grow between 4% and 8% for 2024.
  • Adjusted operating margin for 2024 is anticipated to range from 15.3% to 15.9%, benefitting from strong gross margins and efficient expense management, compared to the previous margin of 15.2% (15.4% adjusted).
  • The company received 2 buy ratings, 5 hold ratings, and 2 sell ratings from analysts.

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Donaldson Co on Smartkarma

Analyst coverage of Donaldson Company Inc on Smartkarma by Baptista Research showcases a positive outlook on the company’s financial performance. In a report titled “Donaldson Company Inc: Will The Aftermarket and Off-Road Growth in Mobile Solutions Last? – Major Drivers,” the company is lauded for achieving record-breaking sales, margins, and EPS in fiscal year 2024. With sales exceeding $3.5 billion and an operating margin of 15.4%, the firm delivered an adjusted EPS of $3.42, marking a 13% year-over-year growth. Strong cash conversion and shareholder returns through dividends and buybacks further underpin the robust performance.

Continuing their analysis, in another report titled “Donaldson Company Inc.: Initiation of Coverage – Expansion in Life Sciences Sector & Other Major Drivers,” Baptista Research highlights the company’s adept navigation of the competitive landscape and growth avenues in the third quarter of fiscal 2024. With a 6% increase in total sales to a record $928 million and a 22% rise in EPS to $0.92, alongside a decade-high operating margin, the firm demonstrates short-term operational success. Particularly in Mobile Solutions, strong volume growth from the aftermarket business signals sustainable revenue streams and solid market performance.


A look at Donaldson Co Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth4
Resilience3
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Donaldson Co has a promising long-term outlook. With solid scores in Growth and Momentum, the company is positioned for future expansion and market traction. The company’s focus on innovation and forward progress is reflected in these scores, indicating potential for sustained growth in the coming years.

Additionally, Donaldson Co shows resilience in challenging market conditions and maintains a respectable Dividend score, providing investors with a decent income opportunity. While there is room for improvement in the Value score, overall, the company’s outlook is positive. Donaldson Company, Inc. is a global manufacturer of filtration systems and replacement parts, catering to various industries worldwide with a diverse product portfolio.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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