The 10-second takeaway
For the quarter ended April 30 (Q3), Donaldson missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share didn't change.
Margins grew across the board.
Donaldson logged revenue of $619.4 million. The nine analysts polled by S&P Capital IQ expected revenue of $659.5 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 $0.46. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.46 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.8%, 50 basis points better than the prior-year quarter. Operating margin was 15.9%, 70 basis points better than the prior-year quarter. Net margin was 11.3%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $636.4 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $2.50 billion. The average EPS estimate is $1.67.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Donaldson is hold, with an average price target of $36.00.
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