NYSE$DCI
Donaldson Company · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Donaldson's Q3 2020 sales declined due to the COVID-19 pandemic, but cost controls mitigated the profit impact. The company maintains a strong financial position and ample liquidity.
Donaldson Company reported a decrease in sales and earnings for the third quarter of 2020, primarily due to the impact of the COVID-19 pandemic. However, cost control measures helped to mitigate the profit impact. The company's financial position remains strong with ample liquidity.
- Third quarter sales declined by 11.7 percent, or 9.7 percent in local currency.
- Operating margin decreased by 0.6 percentage points, while EBITDA margin was flat compared to the prior year.
- Net earnings were $63.4 million, or $0.50 per share, compared to $75.2 million, or $0.58 per share in Q3 2019.
- The company maintains a strong financial position with ample liquidity to support operational and strategic needs.
Headline financials
Revenue & EPS history
Donaldson · Revenue · Quarterly
$630M
Forward guidance
While the magnitude and duration of the impact from the COVID-19 pandemic on certain aspects of the Company’s financial performance remains uncertain, Donaldson expects May 2020 sales to be down about 24 percent, reflecting relative outperformance in replacement parts versus new equipment, and, on a regional basis, Asia Pacific sales are expected to be the strongest while sales in the Americas are expected to be the weakest, To maintain a strong financial position, which was further augmented with an incremental 364-day facility that provides an additional $100 million in liquidity, The pace of capital expenditures will continue to slow as strategic projects related to capacity expansion and research and development capabilities near completion, and Fiscal 2020 share repurchase will total 1.6 percent of outstanding shares, reflecting what has already been completed year-to-date through the third quarter.
Tailwinds
- Replacement parts are outperforming new equipment.
- Asia Pacific sales are expected to be the strongest.
- The company will maintain a strong financial position.
- Liquidity was augmented with an incremental facility providing an additional $100 million.
- Fiscal 2020 share repurchase will total 1.6 percent of outstanding shares.
Headwinds
- The magnitude and duration of the impact from the COVID-19 pandemic on certain aspects of the Company’s financial performance remains uncertain.
- May 2020 sales are expected to be down about 24 percent.
- Sales in the Americas are expected to be the weakest.
- Capital expenditures will continue to slow as strategic projects near completion.
- The company withdrew its financial targets for fiscal years 2020 and 2021.
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 Q3 2020
-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
| Quarter | Report date | Reaction (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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