Donaldson (NYSE:DCI) Issues FY 2027 Earnings Guidance

Key Points

• Donaldson issued FY 2027 guidance for adjusted earnings per share of $4.22–$4.38, below the $4.40 consensus estimate, while revenue guidance of $4.1–$4.3 billion broadly brackets the $4.2 billion consensus.
• The company’s latest quarter exceeded expectations, with EPS of $1.15 versus the $1.13 estimate and revenue of $1.06 billion versus $1.04 billion. Shares traded near $93.29, with analysts maintaining a “Moderate Buy” consensus and an average price target of $99.50.
• Donaldson declared a quarterly dividend of $0.32 per share, equating to $1.28 annually and a 1.4% yield; institutional investors and hedge funds own approximately 82.81% of the stock.

Donaldson (NYSE:DCI - Get Free Report) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 4.220-4.380 for the period, compared to the consensus earnings per share estimate of 4.400. The company issued revenue guidance of $4.1 billion-$4.3 billion, compared to the consensus revenue estimate of $4.2 billion.

Wall Street Analysts Forecast Growth

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

Donaldson Trading Up 0.9%

Shares of DCI stock opened at $93.29 on Wednesday. The firm has a market capitalization of $10.81 billion, a P/E ratio of 25.08, a P/E/G ratio of 2.11 and a beta of 0.92. Donaldson has a twelve month low of $75.58 and a twelve month high of $112.84. The company has a quick ratio of 1.55, a current ratio of 2.35 and a debt-to-equity ratio of 0.35. The stock's fifty day simple moving average is $91.55 and its 200 day simple moving average is $90.52.

Donaldson (NYSE:DCI - Get Free Report) last posted its earnings results on Tuesday, August 25th. The industrial products company reported $1.15 EPS for the quarter, beating the consensus estimate of $1.13 by $0.02. Donaldson had a return on equity of 29.17% and a net margin of 11.52%.The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.04 billion. As a group, sell-side analysts predict that Donaldson will post 3.96 EPS for the current fiscal year.

Donaldson Announces Dividend

The firm 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 dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Monday, August 17th. Donaldson's payout ratio is presently 34.41%.

Hedge Funds Weigh In On Donaldson

A number of hedge funds have recently modified their holdings of DCI. Strive Financial Group LLC acquired a new stake in Donaldson in the fourth quarter valued at $57,000. UMB Bank n.a. grew its position in shares of Donaldson by 47.9% in the 4th 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. grew its position in shares of Donaldson by 389.1% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,389 shares of the industrial products company's stock valued at $114,000 after buying an additional 1,105 shares during the last quarter. Quarry LP increased its stake in shares of Donaldson by 23.4% in the third quarter. Quarry LP now owns 1,671 shares of the industrial products company's stock valued at $137,000 after buying an additional 317 shares during the period. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Donaldson by 84.9% in the second quarter. EverSource Wealth Advisors LLC now owns 2,032 shares of the industrial products company's stock valued at $141,000 after buying an additional 933 shares during the period. Institutional investors and hedge funds own 82.81% of the company's stock.

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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