FX.co ★ Donaldson Q3 Profit Tops Estimates; Lifts FY24 Earnings Outlook Above Market

Donaldson Company, Inc. (DCI), a leading provider of filtration products and solutions, has reported a substantial increase in its third-quarter net earnings, which surged by 21.1% to $113.5 million from $93.7 million in the same period last year.

Earnings per share (EPS) rose to $0.92, marking a 21.7% increase from the previous year's $0.76. The company's sales amounted to $927.9 million, reflecting a 6% growth from $875.7 million in the prior year, driven by volume growth and favorable pricing.

Market analysts, according to Thomson Reuters, had anticipated earnings of $0.83 per share on sales of $915.84 million. It's worth noting that analysts' estimates typically exclude special items.

Donaldson has also revised its fiscal 2024 earnings forecast upwards, motivated by the strong third-quarter results and positive expectations for Q4 performance. The new annual EPS forecast stands between $3.33 and $3.39, up from the previous guidance range of $3.24 to $3.32. For fiscal 2023, the reported EPS was $2.90, with adjusted EPS at $3.04.

Analysts are currently projecting an EPS of $3.27 for the year.

On the sales front, the company anticipates a year-over-year increase between 4% and 6%, factoring in approximately 2% pricing benefits and a negligible impact from currency translation.

Specifically, the company expects mobile sales to rise by 2% to 4%, industrial sales to grow between 6% and 8%, and life sciences sales to see mid-teens growth year-over-year.

The operating margin is projected to be in the range of 15% to 15.4%, compared to the previous year's reported margin of 14% and an adjusted margin of 14.6%.

In pre-market trading on the NYSE, Donaldson's shares were up around 1.5%, trading at $73.05.