Donaldson (NYSE:DCI) Announces Quarterly Earnings Results

Key Points

• Donaldson exceeded quarterly expectations, reporting EPS of $1.15 versus the $1.13 consensus and revenue of $1.06 billion compared with estimates of $1.04 billion.
• The company declared a quarterly dividend of $0.32 per share, equivalent to $1.28 annually and a 1.4% yield, with a payout ratio of 34.41%.
• Analysts maintain a generally positive outlook, with Donaldson holding a consensus “Moderate Buy” rating and a $99.50 average price target; institutional investors own 82.81% of the stock.

Donaldson (NYSE:DCI - Get Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported $1.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.02, FiscalAI reports. Donaldson had a net margin of 11.52% and a return on equity of 29.17%. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.04 billion.

Donaldson Stock Performance

Donaldson stock opened at $93.29 on Wednesday. The firm has a 50 day simple moving average of $91.55 and a 200-day simple moving average of $90.52. Donaldson has a 1-year low of $75.58 and a 1-year high of $112.84. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.35 and a quick ratio of 1.55. The stock has a market cap of $10.81 billion, a price-to-earnings ratio of 25.08, a price-to-earnings-growth ratio of 2.11 and a beta of 0.92.

Donaldson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.4%. The ex-dividend date is Monday, August 17th. Donaldson's payout ratio is presently 34.41%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in DCI. Strive Financial Group LLC purchased a new position in shares of Donaldson during the 4th quarter worth $57,000. UMB Bank n.a. lifted its position in Donaldson by 47.9% in the fourth quarter. UMB Bank n.a. now owns 1,115 shares of the industrial products company's stock valued at $99,000 after buying an additional 361 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in Donaldson by 389.1% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,389 shares of the industrial products company's stock worth $114,000 after buying an additional 1,105 shares during the period. Quarry LP increased its position in shares of Donaldson by 23.4% during the third quarter. Quarry LP now owns 1,671 shares of the industrial products company's stock valued at $137,000 after acquiring an additional 317 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of Donaldson by 84.9% during the second quarter. EverSource Wealth Advisors LLC now owns 2,032 shares of the industrial products company's stock valued at $141,000 after acquiring an additional 933 shares during the last quarter. 82.81% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on DCI shares. Robert W. Baird increased their price objective on shares of Donaldson from $95.00 to $105.00 and gave the company an "outperform" rating in a research report on Wednesday, August 19th. Stifel Nicolaus dropped their target price on Donaldson from $96.00 to $91.00 and set a "hold" rating on the stock in a research report on Thursday, June 4th. Wall Street Zen upgraded shares of Donaldson from a "hold" rating to a "buy" rating in a research report on Sunday, August 9th. Weiss Ratings upgraded Donaldson from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, August 20th. Finally, Wells Fargo & Company set a $91.00 price target on shares of Donaldson in a research note on Thursday, June 4th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Donaldson presently has a consensus rating of "Moderate Buy" and a consensus price target of $99.50.

About Donaldson

Donaldson Company, Inc NYSE: DCI is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson's product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.

Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.

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