Filtration equipment manufacturer Donaldson (NYSE: DCI) will be reporting earnings this Wednesday morning. Here’s what to expect.
Donaldson missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $940.1 million, up 1.3% year on year. It was a mixed quarter for the company, with full-year EPS guidance beating analysts’ expectations but a slight miss of analysts’ constant currency revenue 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 1.9% year on year to $953.5 million, slowing from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.02 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Helios’s revenues decreased 3.4% year on year, beating analysts’ expectations by 5.5%, and Gorman-Rupp reported revenues up 5.6%, topping estimates by 2.5%. Helios traded up 30.7% following the results while Gorman-Rupp was also up 9.9%.
Read our full analysis of Helios’s results here and Gorman-Rupp’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 3.3% on average over the last month. Donaldson is up 4.6% during the same time and is heading into earnings with an average analyst price target of $72.40 (compared to the current share price of $75.34).
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