NYSE$DCI

Donaldson Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record sales and earnings, with Q4 sales increasing by 25.2% and EPS rising by 32%.

Donaldson Company reported a strong fourth quarter and full-year fiscal 2021, achieving record sales and earnings. Q4 sales increased by 25.2% compared to the previous year, and GAAP EPS rose by 32%. The company's performance reflects strong execution and strategic investments, positioning it well for continued success in fiscal 2022.

  • Achieved record sales and earnings in fiscal 2021.
  • Q4 sales increased 25.2% versus Q4 2020.
  • Q4 GAAP EPS of $0.66, up 32% compared to fiscal 2020.
  • Drove year-over-year growth in gross margin and leveraged expenses.

Headline financials

Total Revenue

$773M

Previous: $617M+25.2%
EPS (adj)

$0.66

Previous: $0.50+32.0%
Gross Margin

34.4%

Previous: 33.7%+2.1%
Operating Margin

14.5%

Previous: 13.4%+8.2%
Effective Tax Rate

26.0%

Previous: 21.1%+23.2%
Capital Expenditures

$18.8M

Previous: $18.2M+3.3%
Free Cash Flow

$77.5M

Previous: $104M-25.2%
Net Income

$84.3M

Previous: $64.2M+31.3%
Operating Income

$112M

Previous: $82.5M+35.8%
Gross Profit

$266M

Previous: $208M+27.8%
Cash & Equivalents

$223M

Previous: $237M-5.8%
Total Assets

$2.4B

Previous: $2.24B+6.9%
Stock-Based Comp

$2.6M

Previous: $3.6M-27.8%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$773M

Q4 2021+25.2%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Donaldson expects fiscal 2022 GAAP EPS between $2.50 and $2.66, and net sales are projected to increase between 5% and 10%.

Tailwinds

  • Fiscal 2022 Engine sales are projected to increase between 5% and 10%.
  • On-Road sales are projected to be up in the low single-digits.
  • Off-Road sales are projected to increase in the low double-digits.
  • Engine Aftermarket sales are projected to grow in the mid-single-digits.
  • Industrial sales are projected to increase between 6% and 11%.

Headwinds

  • Fiscal 2022 gross margin is expected to be flat to down slightly compared to 2021, primarily due to increased raw material costs.
  • The first half of fiscal 2022 is expected to experience more significant gross margin pressure than the second half due to the timing of pricing actions and the comparison to favorable raw material costs in the first half of 2021.
  • Special Applications sales are expected to decline in the low single-digit range, primarily driven by expected declines in disk drive filter sales
  • Currency translation is not expected to have a material impact on sales.
  • Raw material costs are expected to increase.

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 Q4 2021

Historical avgQ4 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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