The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Donaldson missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins increased, and net margins expanded.
Donaldson chalked up revenue of $580.9 million. The eight analysts polled by S&P Capital IQ foresaw sales of $603.1 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $537.1 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 $0.70. The nine earnings estimates compiled by S&P Capital IQ forecast $0.71 per share. GAAP EPS of $0.70 for Q2 were 25% higher than the prior-year quarter's $0.56 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 34.6%, 70 basis points worse than the prior-year quarter. Operating margin was 12.9%, 30 basis points better than the prior-year quarter. Net margin was 9.3%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $652.9 million. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $2.53 billion. The average EPS estimate is $3.37.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Donaldson is hold, with an average price target of $69.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.