Donaldson (DCI) Q3 Earnings Report Preview: What To Look For

Filtration equipment manufacturer Donaldson (NYSE:DCI) will be reporting earnings this Thursday before market hours. Here’s what to expect.

Donaldson beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $980.6 million, up 4.8% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

Is Donaldson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Donaldson’s revenue to grow 2.6% year on year to $923.1 million, slowing from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 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. SPX Technologies delivered year-on-year revenue growth of 22.6%, beating analysts’ expectations by 2.2%, and Flowserve reported revenues up 3.6%, falling short of estimates by 2.7%. SPX Technologies traded up 12.7% following the results while Flowserve was also up 30.9%.

Read our full analysis of SPX Technologies’s results here and Flowserve’s results here.

Investors in the gas and liquid handling segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Donaldson is up 4.4% during the same time and is heading into earnings with an average analyst price target of $83.60 (compared to the current share price of $88.16).

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