Filtration equipment manufacturer Donaldson (NYSE: DCI) will be announcing earnings results tomorrow morning. Here’s what to look for.
Donaldson missed analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $870 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ constant currency revenue estimates and a miss of analysts’ adjusted operating income estimates.
Is Donaldson a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Donaldson’s revenue to grow 2.2% year on year to $948 million, slowing from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Donaldson has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Donaldson’s peers in the gas and liquid handling segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Helios’s revenues decreased 7.8% year on year, beating analysts’ expectations by 3.8%, and Flowserve reported revenues up 5.2%, topping estimates by 3.6%. Helios traded up 7.3% following the results while Flowserve’s stock price was unchanged.
Read our full analysis of Helios’s results here and Flowserve’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 6.3% on average over the last month. Donaldson is up 5.3% during the same time and is heading into earnings with an average analyst price target of $69.80 (compared to the current share price of $70.15).
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