Donaldson Firm, Inc. DCI reported first-quarter fiscal 2025 (ended Oct. 31, 2024) adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 82 cents. The underside line elevated 10.7% yr over yr.
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DCI’s Income Outcomes
Whole revenues of $900.1 million beat the Zacks Consensus Estimate of $891 million. The highest line elevated 6.4% yr over yr (up 5% at fixed foreign money), pushed by power in aftermarket arising from market share features and buyer destocking.
Area-wise, Donaldson’s web gross sales in the US/Canada elevated 7% yr over yr. The metric elevated 5% yr over yr in Europe, the Center East and Africa and 6% in Latin America. Additionally, web gross sales within the Asia Pacific improved 7%.
Donaldson stories revenues below three segments, particularly Cellular Options, Industrial Options and Life Sciences.
A short snapshot of segmental gross sales is supplied under.
The Cellular Options section’s (accounting for 63.6% of web gross sales) gross sales had been $572.4 million, indicating a year-over-year rise of 6%. Outcomes benefited from a ten.7% enchancment in aftermarket gross sales. Nonetheless, gross sales fell 5.9% in Off-Street and 15% in On-Street companies in the course of the quarter.
Revenues generated from the Industrial Options section (28.6%) had been $257.6 million, up 4.6% yr over yr. Outcomes benefited from gross sales development of 26.8% in Aerospace and Protection companies.
Revenues generated from the Life Sciences section (7.8%) had been $70.1 million, up 16.6% yr over yr. The outcomes benefited from quantity development in Disk Drive and Meals and Beverage companies.
Donaldson’s Margin Profile
Within the fiscal first quarter, Donaldson’s price of gross sales inched up 6.4% yr over yr to $580.5 million. Gross revenue jumped 6.2% to $319.6 million. The gross margin decreased 10 foundation factors (bps) to 35.5% resulting from larger prices.
Working bills rose 7.1% yr over yr to $188.8 million. Working revenue elevated 4.9% to $130.8 million. The working margin was 14.5%, up 20 bps yr over yr.
The efficient tax charge was 24.2% in contrast with 25.1% within the year-ago quarter.
Donaldson Firm, Inc. Worth, Consensus and EPS Shock
Donaldson Company, Inc. price-consensus-eps-surprise-chart | Donaldson Firm, Inc. Quote
Stability Sheet & Money Movement of DCI
Exiting the fiscal first quarter, Donaldson’s money and money equivalents had been $221.2 million in contrast with $232.7 million within the fourth quarter of fiscal 2024. Lengthy-term debt was $538.6 million in contrast with $483.4 million within the fourth quarter of fiscal 2024.
Within the first three months of fiscal 2025, the corporate generated web money of $72.9 million from working actions, indicating a lower of 47.2% yr over yr. Capital expenditure (web) totaled $25.0 million in contrast with $23.2 million within the year-ago fiscal interval. Free money movement decreased 58.3% to $47.9 million. In the identical time-frame, administration didn’t repay any long-term debt.
It used $74.9 million to repurchase shares and $32.4 million to pay out dividends in the course of the first three months of fiscal 2025.
Donaldson’s FY25 Outlook
For fiscal 2025 (ending July 2025), Donaldson expects adjusted earnings per share to be within the vary of $3.56-$3.72 in contrast with $3.42 in fiscal 2024. Gross sales are anticipated to extend within the 2-6% band from the fiscal 2024 stage. Optimistic pricing is projected to have an accretive influence of 1%.
On a segmental foundation, Cellular Options’ gross sales are anticipated to be flat to extend 4% from the fiscal 2024 stage. Industrial Options’ gross sales are envisioned to leap within the vary of 4-8% from the year-ago determine. The corporate forecasts its Life Sciences section’s gross sales to extend within the low-double-digit vary.
Curiosity bills are predicted to be roughly $21 million whereas different earnings is projected to be within the vary of $16-$20 million. The efficient tax charge is anticipated to be between 23% and 25%.
Capital expenditure is anticipated to be between $85 million and $105 million. Free money movement conversion is anticipated to be within the vary of 85-95%.
DCI’s Zacks Rank
The corporate presently carries a Zacks Rank #3 (Maintain). You may see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Efficiency of Different Industrial Corporations
Avery Dennison Company AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The underside line elevated 9% yr over yr, pushed by larger quantity and productiveness features.
Whole revenues grew 4.1% yr over yr to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Applied sciences Company JBT reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% larger than the prior-year quarter. The determine beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million elevated 12.4% from the year-ago quarter. The highest line surpassed the consensus estimate of $445 million.
A. O. Smith Company’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The underside line decreased 8.9% on a year-over-year foundation.
Web gross sales of $902.6 million missed the consensus estimate of $913 million. The highest line decreased 4% yr over yr resulting from decrease gross sales in China and decreased volumes of water heaters in North America.
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