UPDATE: Donaldson Posts Weaker-Than-Expected FQ1 Earnings, Lowers Outlook

Donaldson Company

reported a weaker-than-expected earnings for the fiscal first quarter and lowered its forecast for the year. The Minneapolis, Minnesota-based company reported quarterly net income of $55.9 million, or $0.40 per share, compared to $62 million, or $0.41 per share, in the year-ago period. Its revenue fell to $596.5 million from $599 million in the period. However, analysts were expecting earnings of $0.42 per share on revenue of $622.6 million. Gross margin narrowed to 35.0% from 35.8%. Operating expenses rose to $132.1 million from $122.6 million. Bill Cook, Donaldson's CEO said, “While current conditions in some of our end markets remain mixed, we will continue to make our key long-term investments and utilize our well diversified portfolio of global filter businesses as we execute our plan to grow to $5 billion in revenues by FY21.” For the full year, Donaldson projects earnings of $1.77 to $1.97 per share on revenue of $2.5 billion to $2.6 billion. The company had earlier expected earnings of $1.81 to $2.01 per share on revenue of $2.57 billion to $2.67 billion. Donaldson shares fell 0.37% to close at $42.75 yesterday.