Donaldson Posts Upbeat Q1 Earnings, But Lowers FY16 Forecast

reported better-than-expected earnings for its fiscal first quarter, but the company's sales missed analysts' estimates. The company also lowered its earnings outlook for the full year. The Minneapolis, Minnesota-based company reported quarterly net earnings of $38.5 million, or $0.29 per share. Excluding items, the company's adjusted earnings came in at $0.34 per share. Its revenue slipped 9.8 percent year-over-year to $538 million. However, analysts were expecting a profit of $0.33 per share on revenue of $552 million. The average estimate among 13 Estimize users was for earnings of $0.34 per share and revenue of $553.77 million. Gross margin shrank 1.9 percentage points to 33.1 percent from 35.0 percent, while operating expense rate widened to 22.8 percent from 22.1 percent. During first quarter, the company repurchased 2.07 million shares of its common stock for a total of $68.0 million. "Our first quarter performance reflects disciplined management of the business in light of continued and persistent pressures related to reduced Customer demand, economic uncertainty and currency translation," said Tod Carpenter, president and chief executive officer of Donaldson. "Our focus remains on supporting our Customers, enhancing operational efficiency and investing for growth." For the full year, Donaldson now projects adjusted earnings of $1.49 to $1.69 per share, versus prior forecast of $1.57 to $1.77 per share. It expects revenue of $2.2 billion to $2.3 billion. Donaldson shares fell 0.16 percent to close at $30.52 yesterday.