Filtration equipment manufacturer Donaldson (NYSE:DCI) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
Donaldson missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $935.4 million, up 6.4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates.
Is Donaldson a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Donaldson’s revenue to grow 5.5% year on year to $892.4 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Donaldson has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Donaldson’s peers in the gas and liquid handling segment, some have already reported their Q3 results, giving us a hint as to what we can expect. IDEX posted flat year-on-year revenue, beating analysts’ expectations by 0.6%, and ITT reported revenues up 7.7%, in line with consensus estimates. IDEX traded up 7.3% following the results while ITT’s stock price was unchanged.
Read our full analysis of IDEX’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 9.7% on average over the last month. Donaldson is up 4.9% during the same time and is heading into earnings with an average analyst price target of $75 (compared to the current share price of $78.05).
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