NYSE$DCI

Donaldson Company · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported record sales and earnings, driven by volume growth and pricing benefits.

Donaldson reported a strong second quarter with sales up 5.8% to $876.7 million and EPS of $0.81, a 15.9% increase compared to the previous year. The company is raising its fiscal 2024 operating margin and EPS guidance and is on track to deliver record full-year sales and EPS.

  • Second quarter sales increased by 5.8% to $876.7 million compared to 2023.
  • GAAP EPS increased by 15.9% to $0.81 compared to 2023.
  • Gross margin was 35.2%, up 90 basis points from 34.3% in 2023.
  • The company is raising fiscal 2024 operating margin and EPS guidance.

Headline financials

Total Revenue

$877M

Previous: $828M+5.8%
EPS

$0.81

Previous: $0.75+8.0%
Gross Margin

35.2%

Previous: 34.3%+2.6%
Operating Margin

14.8%

Previous: 14.0%+5.7%
Effective Tax Rate

23.5%

Previous: 24.1%-2.5%
Capital Expenditures

-$44.5M

Previous: -$57.6M+22.7%
Free Cash Flow

$181M

Previous: $163M+10.8%
Net Income

$98.7M

Previous: $86M+14.8%
Operating Income

$130M

Previous: $116M+11.5%
Gross Profit

$309M

Previous: $284M+8.5%
Cash & Equivalents

$194M

Previous: $179M+8.0%
Total Assets

$2.78B

Previous: $2.58B+7.9%
R&D Expense

$22.1M

No prior period
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$877M

Q2 2024+5.8%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Full-year EPS is forecast to be between $3.24 and $3.32. Sales are expected to increase between 3% and 7% year over year. Operating margin is expected to improve to between 15.0% and 15.4%.

Tailwinds

  • Full-year EPS is forecast to be between $3.24 and $3.32, up from prior guidance of between $3.14 and $3.30.
  • Sales are expected to increase between 3% and 7% year over year, with a pricing benefit of approximately 2% and a currency translation tailwind of roughly 1%.
  • Mobile sales are forecast to increase between 1% and 5% versus 2023.
  • Industrial sales are expected to increase between 3% and 7% compared with prior year.
  • Life Sciences sales are forecast to grow approximately 20% year over year.

Headwinds

  • Continued softening end-market conditions, including in the agriculture markets and in China, are expected to drive a low double-digit decrease in Off-Road sales.
  • On-Road sales are projected to be flat versus prior year.
  • Operating margin is expected to improve to between 15.0% and 15.4%, Year over year gross margin improvement is forecast to offset investments in the Life Sciences segment.
  • Interest expense is forecast to be approximately $23 million.
  • Donaldson projects a fiscal 2024 effective income tax rate of between 24% and 25%.

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 2024

Historical avgQ2 2024

-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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