The 10-second takeaway
For the quarter ended Oct. 31 (Q1), Donaldson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Donaldson reported revenue of $588.9 million. The eight analysts polled by S&P Capital IQ looked for revenue of $584.7 million on the same basis. GAAP reported sales were 3.2% lower than the prior-year quarter's $608.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. GAAP EPS of $0.36 for Q1 were 20% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.7%, 160 basis points worse than the prior-year quarter. Operating margin was 12.5%, 230 basis points worse than the prior-year quarter. Net margin was 9.2%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $612.2 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $2.56 billion. The average EPS estimate is $1.76.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Donaldson is hold, with an average price target of $36.17.
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