The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Donaldson missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share contracted.
Margins contracted across the board.
Donaldson tallied revenue of $596.0 million. The nine analysts polled by S&P Capital IQ looked for net sales of $605.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.34. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. GAAP EPS of $0.34 for Q2 were 2.9% lower than the prior-year quarter's $0.35 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 33.4%, 120 basis points worse than the prior-year quarter. Operating margin was 11.9%, 100 basis points worse than the prior-year quarter. Net margin was 8.5%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $675.2 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $2.55 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 $36.67.
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