Donaldson Q3 Profit Tops Estimates; Lifts FY24 Earnings Outlook Above Market

(RTTNews) - Donaldson Company, Inc. (DCI), a provider of filtration products and solutions, reported Tuesday that its third-quarter net earnings climbed 21.1 percent to $113.5 million from last year's $93.7 million.

Earnings per share were $0.92, up 21.7 percent from $0.76 last year.

Sales of $927.9 million were up 6 percent from prior year's $875.7 million, as a result of volume growth and pricing benefits.

Analysts on average expected the company to report earnings of $0.83 per share on sales of $915.84 million, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Further, Donaldson raised its fiscal 2024 earnings outlook driven by third-quarter results and its expectations for strong performance in the fourth quarter.

Earnings per share for the year is now forecast to be between $3.33 and $3.39, higher than prior guidance of between $3.24 and $3.32. In fiscal 2023, reported earnings per share were $2.90 and adjusted earnings per share were $3.04.

The Street is looking for earnings of $3.27 per share for the year.

Sales for the year are expected to increase between 4 percent and 6 percent year over year, with a pricing benefit of approximately 2 percent and a negligible impact from currency translation.

The company projects mobile sales to increase between 2 percent and 4 percent, Industrial sales to increase between 6 percent and 8 percent; and Life Sciences sales to grow mid-teens year over year.

Operating margin is expected to be between 15 percent and 15.4 percent, compared to last year's reported margin of 14 percent, or adjusted margin of 14.6 percent.

In pre-market activity on the NYSE, Donaldson shares were gaining around 1.5 percent to trade at $73.05.

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