NYSE$DCI

Donaldson Company · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record third quarter sales driven by pricing actions and high demand, but net earnings decreased slightly due to inflation and supply chain constraints.

Donaldson Company reported record third quarter sales of $853.2 million, an 11.5% increase from the previous year. EPS increased to $0.67 from $0.66. However, net earnings decreased slightly by 1.8% to $83.0 million due to persistent inflation and supply chain challenges.

  • Third quarter sales increased 11.5% to a record $853.2 million.
  • GAAP EPS increased to $0.67 from $0.66.
  • Operating margin decreased to 13.0% from 14.3% due to inflation.
  • Fiscal year 2022 sales guidance increased, and EPS range narrowed.

Headline financials

Total Revenue

$853M

Previous: $765M+11.5%
EPS (adj)

$0.67

Previous: $0.66+1.5%
Gross Margin

31.5%

Previous: 33.7%-6.5%
Operating Margin

13.0%

Previous: 14.3%-9.1%
Effective Tax Rate

25.4%

Previous: 23.9%+6.3%
Capital Expenditures

-$56.8M

Previous: -$40.2M-41.3%
Free Cash Flow

$87.1M

Previous: $265M-67.2%
Net Income

$83M

Previous: $84.4M-1.7%
Operating Income

$111M

Previous: $109M+1.5%
Gross Profit

$269M

Previous: $258M+4.3%
Cash & Equivalents

$169M

Previous: $215M-21.6%
Total Assets

$2.52B

Previous: $2.35B+7.0%
Stock-Based Comp

$3.6M

Previous: $1.4M+157.1%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$853M

Q3 2022+11.5%vs Q3 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Fiscal 2022 sales are expected to increase 14.5% to 16.5% over prior year. GAAP EPS is now expected to be between $2.67 and $2.73.

Tailwinds

  • Fiscal 2022 sales are expected to increase 14.5% to 16.5%.
  • Engine sales are projected to increase between 16% and 18%.
  • Industrial sales are expected to increase between 10% and 12%.
  • Share repurchase expectation increased to between 2.0% and 2.5% of shares outstanding.
  • Better-than-expected third quarter performance in Off-Road and Aftermarket.

Headwinds

  • Currency translation is forecast to negatively impact sales by approximately 3%.
  • Fiscal 2022 gross margin is expected to be down between 1.5 and 2.0 percentage points.
  • Fiscal 2022 operating margin is forecast to be between 13.5% and 13.9%.
  • Free cash flow conversion is expected to be between 50% and 60%.
  • Weaker-than-expected third quarter gross margin results drove the revised full-year outlook.

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 2022

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro