U.S. filtration products maker's fiscal Q4 sales rose 8%, beating analyst expectations
Adjusted EPS for fiscal Q4 increased 11.7%
Company sees record sales and EPS for fiscal 2027, with margin expansion
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$1.06 bln
$1.04 bln (5 Analysts)
Q4 Net earnings
$129.30 mln
Q4 Gross Profit
$383.90 mln
Q4 Operating income
$176.60 mln
Outlook for fiscal 2027
Donaldson projects fiscal 2027 sales growth of 5.5% to 9.5%, including 2% from Facet
Company forecasts fiscal 2027 EPS between $4.22 and $4.38, including $0.12 Facet dilution
Operating margin for fiscal 2027 expected between 16.6% and 17.2%, up from 16.0% adjusted in 2026
Drivers behind the quarter
VOLUME AND PRICING - Co said Q4 sales growth was driven by higher volume and pricing benefits
SEGMENT PERFORMANCE - Mobile Solutions Aftermarket and On-Road sales grew, Industrial Solutions benefited from Facet in Aerospace and Defense, Life Sciences saw double-digit Disk Drive growth
GROSS MARGIN EXPANSION - Co attributed higher Q4 gross margin to increased volume, pricing and mix, partially offset by higher input costs and Power Generation production inefficiencies
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Donaldson Company, Inc. is $91.00, about 2.4% below its August 25 closing price of $93.26
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
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