The upcoming report from Donaldson (DCI) is expected to reveal quarterly earnings of $0.82 per share, indicating an increase of 9.3% compared to the year-ago period. Analysts forecast revenues of $891.18 million, representing an increase of 5.3% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Ahead of a compa ...

Donaldson Company, Inc. (DCI) is poised to gain from solid momentum across its segments. The Mobile Solutions segment has been benefiting from higher volume in the aftermarket business, driven by healthy demand for replacement filters for both air and liquid filtration applications. The Industrial Solutions segment is driven by persistent strength in the aerospace and defense business. Robust momentum in the commercial aerospace and rotorcraft markets, as well as solid demand in defense markets due to the m ...

Group 1 - The core viewpoint is that Donaldson Company, Inc. (NYSE: DCI) has been upgraded to a Buy rating due to improving margins and strong volume in the Mobility segment, along with positive fundamentals in the Industrial Solutions and Life Sciences segments [1] Group 2 - The investment strategy involves purchasing undervalued profitable stocks with strong balance sheets and minimal debt, and potentially writing calls against positions for additional income [1]

Donaldson Company, Inc. (DCI) announced that it would open a distribution center in Olive Branch, MS. This new center will boost the company's ability to meet increasing customer demand in the mobile solutions aftermarket, which includes heavy-duty trucking, construction, mining and agriculture sectors. Located in the Memphis, TN metropolitan area, the new distribution center will expand Donaldson's warehouse space by 200,000 square feet. The Olive Branch facility will provide important space for business g ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended July 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________ Commission File Number: 1-7891 DONALDSON COMPANY, INC. (Exact name of registrant as specified in its charter) Delaware 41-0222640 (State or other jurisdi ...

A month has gone by since the last earnings report for Donaldson (DCI) . Shares have added about 3.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Donaldson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Donaldson Q4 Earnings Top Estimates & Revenues Miss Donal ...

Group 1: Company Expansion and Services - Donaldson Company, Inc. (DCI) has launched its filtration services in France, Germany, and Austria, aiming to expand its presence in the food and beverage markets [1][3] - The filtration services will assist manufacturers in operating their filtration systems, offering on-site support and customized solutions to meet sustainability, efficiency, and effectiveness goals [2] - DCI's new services for the Life Sciences sector are backed by a century of reliable service and will leverage a network of over 1,000 engineers, scientists, and specialists globally [3] Group 2: Financial Performance and Market Conditions - DCI currently holds a Zacks Rank of 4 (Sell), with its shares gaining 11.1% year-to-date, compared to the industry's growth of 25.3% [4] - The company is experiencing weakness in both on-road and off-road businesses due to lower equipment production linked to soft industrial markets, particularly in the United States and China [4] - Challenges in the dust collection and power generation sectors within the industrial filtration solutions business are also noted as concerning [4]

Core Viewpoint - Donaldson Company, Inc. reported strong adjusted earnings for Q4 fiscal 2024, exceeding estimates, but total revenues fell short of expectations despite year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share for Q4 fiscal 2024 were 94 cents, surpassing the Zacks Consensus Estimate of 88 cents, marking a 20% increase year over year [1]. - Total revenues reached $935.4 million, missing the Zacks Consensus Estimate of $941 million, but reflecting a 6.4% year-over-year increase (7.6% at constant currency) [2]. - The cost of sales increased by 3.7% year over year to $600.6 million, while gross profit rose by 11.6% to $334.8 million, resulting in a gross margin of 35.8%, up 170 basis points [5]. Segment Performance - Mobile Solutions segment, accounting for 61.5% of net sales, reported sales of $575.3 million, a 6.1% year-over-year increase, driven by a 12.6% rise in aftermarket sales [3]. - Industrial Solutions segment generated revenues of $287.8 million, up 3.9% year over year, with a notable 39.7% growth in Aerospace and Defense [4]. - Life Sciences segment revenues were $72.3 million, reflecting a 20.7% year-over-year increase, benefiting from volume growth in Disk Drive and Food and Beverage businesses [4]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q4 fiscal 2024 were $232.7 million, up from $187.1 million in the same quarter of fiscal 2023, while long-term debt decreased to $483.4 million from $496.6 million [7]. - The company generated net cash of $492.5 million from operating activities, a decrease of 9.6% year over year, with free cash flow down 4.3% to $407.6 million [8]. Fiscal 2025 Outlook - For fiscal 2025, adjusted earnings per share are expected to be in the range of $3.56-$3.72, with sales anticipated to increase by 2-6% from fiscal 2024 levels [10]. - Segment-wise, Mobile Solutions sales are expected to be flat to increase by 4%, while Industrial Solutions sales are projected to rise by 4-8% [11]. - Capital expenditure is forecasted to be between $85 million and $105 million, with free cash flow conversion expected to be in the range of 85-95% [12].

Financial Data and Key Metrics Changes - Fiscal 2024 was a record year for the company, with sales surpassing $3.5 billion, an operating margin of 15.4%, and adjusted EPS of $3.42, reflecting a 13% increase year-over-year [4][10] - Cash conversion exceeded 97%, significantly above historical averages, with $286 million returned to shareholders through dividends and share buybacks [4][10] - Fourth quarter sales increased by 6% year-over-year to $935 million, driven primarily by volume, with price contributing approximately 1% [7][10] Business Line Data and Key Metrics Changes - In Mobile Solutions, total sales were $575 million, a 6% increase, with Aftermarket sales growing 13% to $453 million [8][10] - Industrial Solutions saw sales rise 4% to $288 million, with Aerospace and Defense sales increasing approximately 40% to $50 million [9][10] - Life Sciences segment sales grew 21% to $72 million, primarily due to Disk Drive sales rebounding from previous lows [10] Market Data and Key Metrics Changes - The company experienced mixed end-market conditions, with Mobile Solutions facing declines in first-fit businesses, particularly in China, where sales decreased 19% year-over-year [8][9] - Industrial Filtration Solutions (IFS) sales declined 1.5% due to weaker dust collection demand in Europe [9] - Life Sciences growth is expected to be low-double-digits, driven by legacy businesses, despite a slower ramp-up in bioprocessing [18][22] Company Strategy and Development Direction - The company is focused on advancing filtration technologies and has set strategic initiatives aligned with its 2030 ESG ambitions [4][10] - The acquisition of a 49% stake in Medica S.p.A. is aimed at enhancing capabilities in hollow fiber membrane technology for bioprocessing applications [6][10] - The company remains committed to a diversified technology-led portfolio to penetrate existing markets and enter new ones [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025, forecasting sales growth between 2% and 6% and adjusted EPS between $3.56 and $3.72 [10][19] - The outlook for Life Sciences has been adjusted downward due to macro pressures and constrained customer capital spending, with profitability expected to be approximately breakeven [18][22] - Management highlighted the importance of maintaining strong relationships with original equipment manufacturers (OEMs) and leveraging pricing opportunities [28][36] Other Important Information - The company plans to continue increasing R&D investments, particularly in Life Sciences and Industrial Services, while maintaining a focus on capital deployment strategies [20][21] - Capital expenditures for fiscal 2025 are projected between $85 million and $105 million, with a continued emphasis on growth investments [19][20] Q&A Session Summary Question: Insights on Life Sciences trends and outlook - Management expects low-double-digit growth in food and beverage, muted growth in bioprocessing, and gradual recovery in disk drive sales [27] Question: Drivers of margin expansion in Mobile Solutions - Key drivers include share gains in Aftermarket, favorable sales mix, and improved manufacturing efficiency [28] Question: Impact of first-fit business recovery on margins - A recovery in first-fit business could lead to a mix impact, but management believes they can weather these changes [44] Question: Details on the NAPA partnership - The partnership leverages the company's technology and strong customer relationships, contributing to growth in the independent channel [39][41] Question: Sales cadence for fiscal 2025 - The sales cadence is expected to be closer to a 49-51 split between the first and second halves of the fiscal year [48] Question: R&D investment trends - R&D spending is expected to increase both in dollars and as a percentage of sales, reflecting the company's commitment to innovation [51]

Financial Performance - Revenue for the quarter ended July 2024 was $935.4 million, up 6.4% year-over-year [1] - EPS was $0.94, compared to $0.78 in the year-ago quarter [1] - Revenue missed the Zacks Consensus Estimate of $941.12 million by -0.61% [1] - EPS exceeded the consensus estimate of $0.88 by +6.82% [1] Segment Performance Industrial Products - Net sales were $287.80 million, below the estimate of $298.61 million but up 3.9% year-over-year [3] - Earnings before income taxes were $57.80 million, above the estimate of $55.90 million [10] Mobile Solutions - Net sales were $575.30 million, exceeding the estimate of $564.79 million [4] - Earnings before income taxes were $105.20 million, above the estimate of $102.18 million [10] - Off-Road net sales were $89.90 million, below the estimate of $93.66 million [8] - On-Road net sales were $32.90 million, below the estimate of $36.06 million [9] - Aftermarket net sales were $452.50 million, above the estimate of $436.03 million [10] Life Sciences - Net sales were $72.30 million, below the estimate of $80.24 million but up 20.7% year-over-year [5] - Earnings before income taxes were -$0.90 million, below the estimate of $1.88 million [10] Industrial Solutions - Industrial Filtration Solutions net sales were $237.40 million, below the estimate of $252.94 million [6] - Aerospace and Defense net sales were $50.40 million, above the estimate of $43.19 million [7] Corporate and Unallocated - Earnings before income taxes were -$22.70 million, below the estimate of -$12.93 million [11] Stock Performance - Shares of Donaldson returned -0.4% over the past month, compared to the Zacks S&P 500 composite's +3.2% change [11] - The stock currently has a Zacks Rank 3 (Hold) [11]