Donaldson Q1 Earnings Beat Expectations

Donaldson Company, Inc. (NYSE: DCI) reported better-than-expected earnings for the fiscal third quarter.The Minneapolis, Minnesota-based company reported a quarterly profit of $46.4 million, or $0.33 per share, versus a year-ago profit of $67.3 million, or $0.46 per share. Excluding certain items, the company's profit slipped to $0.36 per share from $0.46 per share.Its revenue dropped 9 percent to $568 million. However, analysts were expecting earnings of $0.35 per share on revenue of $569.24 million.The average estimate among 4 Estimize users was for earnings of $0.37 per share and revenue of $571.58 million.Its engine-product sales declined 9 percent, while revenue from industrial products slipped 10 percent in the quarter.Gross margin shrank to 33.8 percent from 35.8 percent, while operating margin declined to 11.4 percent from 14.9 percent.During third quarter, the company repurchased 717 thousand shares of its common stock for a total of $27.0 million."Our third quarter results, and our full-year sales and earnings forecast, are in line with the guidance provided earlier this month, which reflects a slowdown of the Aftermarket business combined with continued pressure from Off-Road end markets and the strong U.S. dollar," said Tod Carpenter, Donaldson's CEO.For the year, Donaldson now expects adjusted earnings of $1.53 to $1.59 per share, on revenue of around $2.35 billion.Donaldson shares closed at $35.64 yesterday.