Filtration equipment manufacturer Donaldson (NYSE: DCI) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Donaldson met analysts’ revenue expectations last quarter, reporting revenues of $896.3 million, up 3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Donaldson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Donaldson’s revenue to grow 4.2% year on year, improving from the 1.3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Donaldson has missed Wall Street’s revenue estimates multiple 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. Gorman-Rupp delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 3.5%, and ITT reported revenues up 32.7%, topping estimates by 9.8%. Gorman-Rupp traded up 16% following the results while ITT was down 2.3%.
Read our full analysis of Gorman-Rupp’s results here and ITT’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 5.2% on average over the last month. Donaldson is down 3.9% during the same time and is heading into earnings with an average analyst price target of $96.40 (compared to the current share price of $81.89).
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