Donaldson Company Down 8.47% To $58.68 After Earnings

Donaldson Company Inc (DCI) surpassed earnings projections on 5/31/2023 for Q3 2023.

Analyst expectations for Donaldson Company earnings per share (EPS) were at $0.74, with the company surpassing those estimates with a reported EPS of $0.76, leading to a positive surprise of $0 per share (3%). Donaldson Company's earnings rose 13% year-over-year as the firm reported an EPS of $0.67 in its year-ago quarter. The positive annual growth shows the Industrials company is performing well amid recent economic conditions.

Consensus analyst estimates were at $868.4 million. The Industrials company managed to surpass those expectations for its third quarter with revenue of $875.7 million, a positive revenue surprise of $7.3 million (1%). The firm managed 3% growth year-over-year due to Donaldson Company reporting quarterly revenue of $853.2 million in its year-ago quarter. Donaldson Company achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 8.47% to $58.68 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Donaldson Company a Bullish Sentiment Rank from InvestorsObserver.

Donaldson Company has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 91, putting Donaldson Company in the top 25% of stocks. The firm was recently trading at a 52-week high of $66.96 on March 3, 2023 and set a 52-week low on June 21, 2022 at $46.

Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into two segments: engine products and industrial products. Donaldson generated approximately $2.9 billion in revenue and $385 million in operating income in its fiscal 2021.