William Blair Has Positive View of Donaldson FY2026 Earnings

Key Points

• William Blair has increased its FY2026 earnings per share estimate for Donaldson to $3.97, up from a previous estimate of $3.86, surpassing the consensus estimate of $3.64.
• Donaldson reported a quarterly EPS of $1.03, beating analyst estimates by $0.01, with revenue of $980.70 million, reflecting a year-over-year increase of 4.8%.
• The company recently declared a quarterly dividend of $0.30 per share, resulting in an annualized yield of 1.5% and a payout ratio of 39.34%.

Donaldson Company, Inc. (NYSE:DCI - Free Report) - Equities research analysts at William Blair upped their FY2026 earnings per share estimates for Donaldson in a report released on Thursday, August 28th. William Blair analyst B. Drab now expects that the industrial products company will post earnings of $3.97 per share for the year, up from their prior estimate of $3.86. The consensus estimate for Donaldson's current full-year earnings is $3.64 per share.

Donaldson (NYSE:DCI - Get Free Report) last released its quarterly earnings data on Wednesday, August 27th. The industrial products company reported $1.03 earnings per share for the quarter, beating analysts' consensus estimates of $1.02 by $0.01. The company had revenue of $980.70 million for the quarter, compared to the consensus estimate of $951.59 million. Donaldson had a return on equity of 29.50% and a net margin of 9.94%.The company's quarterly revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.94 earnings per share. Donaldson has set its FY 2026 guidance at 3.920-4.080 EPS.

Several other research analysts have also issued reports on DCI. Wall Street Zen lowered Donaldson from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Robert W. Baird raised their price objective on shares of Donaldson from $78.00 to $85.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. Stifel Nicolaus raised their price objective on shares of Donaldson from $69.00 to $84.00 and gave the stock a "hold" rating in a report on Thursday, August 28th. Finally, Morgan Stanley raised their price objective on shares of Donaldson from $69.00 to $72.00 and gave the stock an "underweight" rating in a report on Tuesday. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $80.33.

Donaldson Price Performance

Donaldson stock traded up $0.21 during mid-day trading on Monday, hitting $79.83. 140,565 shares of the company were exchanged, compared to its average volume of 596,593. The company has a quick ratio of 1.24, a current ratio of 1.93 and a debt-to-equity ratio of 0.43. The business has a fifty day moving average of $72.97 and a 200 day moving average of $69.37. Donaldson has a 1-year low of $57.45 and a 1-year high of $83.31. The company has a market capitalization of $9.30 billion, a PE ratio of 26.19, a price-to-earnings-growth ratio of 1.89 and a beta of 1.01.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of DCI. Colonial Trust Co SC acquired a new position in Donaldson during the fourth quarter valued at approximately $25,000. Cullen Frost Bankers Inc. acquired a new position in Donaldson during the first quarter valued at approximately $29,000. Hantz Financial Services Inc. grew its holdings in Donaldson by 5,112.5% during the second quarter. Hantz Financial Services Inc. now owns 417 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 409 shares during the period. NewSquare Capital LLC acquired a new position in Donaldson during the second quarter valued at approximately $34,000. Finally, Brooklyn Investment Group raised its holdings in Donaldson by 113.9% during the 1st quarter. Brooklyn Investment Group now owns 601 shares of the industrial products company's stock worth $40,000 after buying an additional 320 shares during the period. Institutional investors and hedge funds own 82.81% of the company's stock.

Insider Transactions at Donaldson

In other news, Director Trudy A. Rautio sold 31,900 shares of the company's stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $79.96, for a total transaction of $2,550,724.00. Following the transaction, the director directly owned 29,330 shares in the company, valued at approximately $2,345,226.80. This represents a 52.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, President Guillermo Briseno sold 13,500 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $79.03, for a total transaction of $1,066,905.00. Following the transaction, the president owned 25,309 shares of the company's stock, valued at approximately $2,000,170.27. This represents a 34.79% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 63,900 shares of company stock worth $5,129,264. Corporate insiders own 2.70% of the company's stock.

Donaldson Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 27th. Stockholders of record on Tuesday, August 12th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Tuesday, August 12th. Donaldson's dividend payout ratio is presently 39.34%.

Donaldson Company Profile

Donaldson Company, Inc manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems.