NYSE$DCI

Donaldson Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record second quarter earnings driven by strong sales growth and effective expense management.

Donaldson Company reported a strong second quarter with record sales of $802.5 million, an 18.2% increase from the previous year. GAAP EPS increased by 30.4% to $0.57, and adjusted EPS increased by 9.8% to $0.52. The company is increasing its fiscal year 2022 sales and EPS guidance.

  • Second quarter sales increased by 18.2% year-over-year, reaching a record $802.5 million.
  • GAAP EPS increased by 30.4% to $0.57, while adjusted EPS increased by 9.8% to $0.52.
  • The Engine Products segment sales increased by 19.8%, driven by growth in Aerospace and Defense, Off-Road, and Aftermarket.
  • The Industrial Products segment sales rose by 14.6%, with strong growth in Gas Turbine Systems and Industrial Filtration Solutions.

Headline financials

Total Revenue

$803M

Previous: $679M+18.2%
EPS (adj)

$0.57

Previous: $0.52+9.6%
Gross Margin

31.1%

Previous: 33.2%-6.3%
Operating Margin

11.9%

Previous: 11.2%+6.3%
Effective Tax Rate

24.1%

Previous: 23.9%+0.8%
Capital Expenditures

-$33.5M

Previous: -$30.4M-10.2%
Free Cash Flow

$46.3M

Previous: $172M-73.1%
Net Income

$71.8M

Previous: $56.2M+27.8%
Operating Income

$95.7M

Previous: $76.1M+25.8%
Gross Profit

$250M

Previous: $225M+10.9%
Cash & Equivalents

$170M

Previous: $207M-17.8%
Total Assets

$2.49B

Previous: $2.27B+9.7%
Stock-Based Comp

$4.4M

Previous: $3.9M+12.8%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$803M

Q2 2022+18.2%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Donaldson is increasing its fiscal 2022 sales and EPS guidance to reflect a better-than-expected sales outlook given first half performance combined with additional pricing realization planned in the second half of the year.

Tailwinds

  • Net sales are projected to increase between 11% and 15% year-over-year.
  • Fiscal 2022 GAAP EPS is now expected to be between $2.66 and $2.76.
  • Engine sales are projected to increase between 12% to 16% compared with 2021.
  • Aerospace and Defense sales are also projected to increase versus previous expectations due to improved commercial aerospace market conditions and market share gains.
  • Industrial sales are expected to increase between 9% and 13% compared with 2021.

Headwinds

  • Currency translation is forecast to negatively impact sales by approximately 2%.
  • Fiscal 2022 gross margin is expected to be down between 1 to 1.5 percentage points compared with 2021.
  • Inflationary pressures were greater than expected in the first half and are anticipated to continue through the balance of the year.
  • Fiscal 2022 operating margin is forecast to be between 14.0% and 14.4%.
  • The Company anticipates fiscal 2022 interest expense of approximately $14.0 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.0%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.4%

Avg return

30 days after

54%

36 / 67 earnings

Positive

+10.1%

Q4 2018

Best reaction

-11.7%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-11.7%-10.9%-19.7%
Q1 2026+7.6%+2.9%+2.7%
Q4 2025+8.5%+5.3%+7.1%
Q3 2025-0.1%+1.7%+3.0%
Q2 2025-2.4%-2.5%-3.1%
Q1 2025-6.0%-6.6%-13.8%
Q4 2024-3.9%-2.3%-0.8%
Q3 2024+3.7%+1.7%-1.2%
Q2 2024+6.7%+8.3%+11.2%
Q1 2024+3.5%+5.3%+11.2%
Q4 2023+4.0%+5.8%-2.5%
Q3 2023-7.7%-8.9%-2.5%
Q2 2023+4.9%+4.5%+3.3%
Q1 2023+3.1%+0.7%-0.5%
Q4 2022-2.3%-3.9%-7.4%
Q3 2022+2.6%+1.9%-7.1%
Q2 2022+0.2%-7.5%+0.2%
Q1 2022+0.9%+2.2%+5.0%
Q4 2021-7.5%-9.5%-12.8%
Q3 2021+2.4%+0.5%+2.8%
Q2 2021-4.9%-4.4%-4.9%
Q1 2021+3.0%+3.0%+5.2%
Q4 2020-7.8%-10.3%-7.0%
Q3 2020+3.5%+7.2%-3.6%
Q2 2020-4.9%-4.1%-25.9%
Q1 2020-2.8%+0.7%+5.1%
Q4 2019+7.4%+8.7%+8.2%
Q3 2019+0.7%+1.2%+4.0%
Q2 2019-5.9%-4.6%+1.9%
Q1 2019-9.3%-13.7%-26.1%
Q4 2018+10.1%+13.1%+13.6%
Q3 2018-2.9%-1.2%-5.2%
Q2 2018-5.7%-3.1%-4.7%
Q1 2018-0.2%-0.7%+0.9%
Q4 2017-6.7%-5.1%-0.5%
Q3 2017-2.6%-5.8%-5.0%
Q2 2017+5.1%+5.0%+6.0%
Q1 2017+6.8%+8.6%+3.7%
Q4 2016-1.9%-2.8%-2.1%
Q3 2016+8.6%+9.4%+3.5%
Q2 2016+7.5%
Q1 2016+3.1%
Q4 2015-1.6%
Q3 2015+2.2%
Q2 2015-2.0%
Q1 2015-7.6%
Q4 2014+3.6%
Q3 2014-7.0%
Q2 2014-2.7%
Q1 2014+0.0%
Q4 2013-3.5%
Q3 2013+1.8%
Q2 2013-2.8%
Q1 2013+5.7%
Q4 2012+1.4%
Q3 2012+6.0%
Q2 2012-3.5%
Q1 2012-2.8%
Q4 2011+2.4%
Q4 2009+2.4%
Q4 2010+2.4%
Q3 2010-2.9%
Q3 2011-2.9%
Q2 2011+1.2%
Q2 2010+1.2%
Q1 2011+0.0%
Q1 2010+0.0%

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