NYSE$DCI

Donaldson Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Donaldson's third quarter sales were the highest in its history, driven by strength in the Engine segment and recovery in the Industrial segment.

Donaldson reported record third-quarter sales of $765 million, a 21.5% increase year-over-year. EPS increased 32% to $0.66. The company raised its fiscal year 2021 sales guidance to 9-11% growth and GAAP EPS to $2.20-$2.26.

  • Third quarter sales reached a record $765 million, up 21.5% from 2020.
  • Earnings per share increased 32% to $0.66 compared to $0.50 in the previous year.
  • Gross margin improved by 50 basis points to 33.7%, driven by volume leverage and pricing activities.
  • Fiscal year 2021 sales guidance was increased to a range of 9% to 11% growth.

Headline financials

Total Revenue

$765M

Previous: $630M+21.5%
EPS (adj)

$0.66

Previous: $0.50+32.0%
Gross Margin

33.7%

Previous: 33.2%+1.5%
Operating Margin

14.3%

Previous: 13.4%+6.7%
Effective Tax Rate

23.9%

Previous: 24.9%-4.0%
Capital Expenditures

-$40.2M

Previous: -$106M+62.1%
Free Cash Flow

$265M

Previous: $159M+66.9%
Net Income

$84.4M

Previous: $63.4M+33.1%
Operating Income

$109M

Previous: $84.5M+29.5%
Gross Profit

$258M

Previous: $209M+23.3%
Cash & Equivalents

$215M

Previous: $327M-34.1%
Total Assets

$2.35B

Previous: $2.34B+0.7%
Stock-Based Comp

$1.4M

Previous: $1.4M+0.0%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$765M

Q3 2021+21.5%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Donaldson is increasing its fiscal 2021 guidance due to strong third quarter fiscal 2021 results, current backlog levels, and incoming order rates. GAAP EPS is expected to be between $2.20 and $2.26. The Company expects full-year sales to increase between 9% and 11% versus fiscal 2020.

Tailwinds

  • Strong third quarter fiscal 2021 results
  • Current backlog levels
  • Incoming order rates
  • Full-year sales to increase between 9% and 11% versus fiscal 2020
  • Off-Road, On-Road, and Aftermarket are expected to show strong growth.

Headwinds

  • Ongoing weakness in commercial aerospace
  • Expected sales decline in Aerospace and Defense
  • Higher raw material and freight costs
  • Second half sales mix pressure, primarily in the Engine segment
  • Increased incentive compensation expense

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 2021

Historical avgQ3 2021

-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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