NYSE$DCI

Donaldson Company · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record fourth quarter and full-year earnings with sales up 15.1% compared to fiscal 2021.

Donaldson reported a strong fourth quarter and full-year 2022, with sales reaching over $3 billion. The company achieved record profits despite a challenging operating environment and returned $281 million to shareholders. Looking forward, Donaldson anticipates continued high demand and pricing tailwinds for fiscal year 2023.

  • Fourth quarter sales increased by 15.1% compared to fiscal year 2021.
  • GAAP EPS for the fourth quarter was $0.81.
  • Adjusted EPS for the fourth quarter increased by 27.3% to $0.84.
  • The company forecasts sales to increase between 1% and 5% for fiscal year 2023, with an EPS forecast of $2.91 to $3.07.

Headline financials

Total Revenue

$890M

Previous: $773M+15.1%
EPS (adj)

$0.84

Previous: $0.66+27.3%
Gross Margin

32.8%

Previous: 34.4%-4.7%
Operating Margin

14.5%

Previous: 14.5%+0.0%
Effective Tax Rate

21.4%

Previous: 26.0%-17.7%
Capital Expenditures

$28.7M

Previous: $18.8M+52.7%
Free Cash Flow

$80.2M

Previous: $77.5M+3.5%
Net Income

$101M

Previous: $84.3M+19.9%
Operating Income

$129M

Previous: $112M+15.4%
Gross Profit

$292M

Previous: $266M+9.7%
Cash & Equivalents

$193M

Previous: $223M-13.2%
Total Assets

$2.6B

Previous: $2.4B+8.3%
Stock-Based Comp

$3.4M

Previous: $2.6M+30.8%

Revenue & EPS history

Donaldson · Revenue · Quarterly

$890M

Q4 2022+15.1%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Donaldson expects fiscal 2023 EPS between $2.91 and $3.07. Full-year 2023 net sales are projected to increase between 1% and 5% versus the prior year, including benefits from pricing of approximately 6% and a negative impact from currency translation of approximately 4%.

Tailwinds

  • Pricing benefits of approximately 6% are expected to boost sales.
  • Mid-single digit growth in Aftermarket and Aerospace and Defense is anticipated.
  • Elevated levels of equipment utilization across end-markets will contribute to growth in Aftermarket.
  • Continued strength in the commercial aerospace industry will drive Aerospace and Defense sales.
  • Industrial dust collection and Process Filtration sales are expected to continue the momentum seen in fiscal 2022.

Headwinds

  • Currency translation is expected to have a negative impact of approximately 4%.
  • Modest declines are expected in On-Road and Off-Road sales.
  • Strategic exiting of lower-margin programs will negatively impact On-Road and Off-Road sales.
  • Off-Road sales are projected to be negatively impacted by a slowdown in Exhaust and Emissions volumes.
  • APAC market weakness is expected to continue to weigh on sales, particularly in the first half of fiscal 2023.

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 2022

Historical avgQ4 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%

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