Donaldson Earnings Preview

Donaldson DCI is preparing to release its quarterly earnings on Tuesday, 2025-06-03. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Donaldson to report an earnings per share (EPS) of $0.96.

The announcement from Donaldson is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

Last quarter the company missed EPS by $0.02, which was followed by a 2.22% increase in the share price the next day.

Here's a look at Donaldson's past performance and the resulting price change:

Performance of Donaldson Shares

Shares of Donaldson were trading at $69.55 as of May 30. Over the last 52-week period, shares are down 6.16%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Perspectives on Donaldson

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Donaldson.

A total of 1 analyst ratings have been received for Donaldson, with the consensus rating being Neutral. The average one-year price target stands at $63.0, suggesting a potential 9.42% downside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Watts Water Technologies, Middleby and ESAB, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Watts Water Technologies, with an average 1-year price target of $229.0, suggesting a potential 229.26% upside.
• Analysts currently favor an Outperform trajectory for Middleby, with an average 1-year price target of $174.33, suggesting a potential 150.65% upside.
• Analysts currently favor an Neutral trajectory for ESAB, with an average 1-year price target of $129.4, suggesting a potential 86.05% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Watts Water Technologies, Middleby and ESAB, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Donaldson is at the top for Gross Profit and Return on Equity among its peers. However, it is at the bottom for Revenue Growth.

Get to Know Donaldson Better

Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.

Donaldson: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Donaldson's revenue growth over 3 months faced difficulties. As of 31 January, 2025, the company experienced a decline of approximately -0.76%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Donaldson's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 11.02%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Donaldson's ROE excels beyond industry benchmarks, reaching 6.21%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Donaldson's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.19% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Donaldson's debt-to-equity ratio is below the industry average. With a ratio of 0.37, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Donaldson visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.