Core Viewpoint - Donaldson (DCI) reported a slight decline in revenue for the quarter ended January 2025, with earnings per share (EPS) showing a modest increase compared to the previous year [1] Financial Performance - Revenue for the quarter was $870 million, down 0.8% year-over-year, and below the Zacks Consensus Estimate of $908.65 million, resulting in a surprise of -4.25% [1] - EPS was reported at $0.83, an increase from $0.81 in the same quarter last year, but below the consensus estimate of $0.85, leading to an EPS surprise of -2.35% [1] Segment Performance - Industrial Solutions segment reported net sales of $253.70 million, below the estimated $277.26 million, reflecting a year-over-year decline of -3.7% [4] - Mobile Solutions generated net sales of $547.50 million, slightly below the estimated $555.49 million, with a year-over-year change of -0.5% [4] - Life Sciences segment achieved net sales of $68.80 million, surpassing the estimated $71.47 million, marking a year-over-year increase of +9.2% [4] - Industrial Filtration Solutions within Industrial Solutions reported net sales of $207.50 million, below the estimate of $238.85 million, representing a year-over-year decline of -7.6% [4] - Aerospace and Defense within Industrial Solutions saw net sales of $46.20 million, exceeding the estimate of $38.90 million, with a year-over-year increase of +18.8% [4] - Off-Road Mobile Solutions reported net sales of $80.20 million, below the estimate of $92.06 million, reflecting a year-over-year decline of -12.7% [4] - On-Road Mobile Solutions had net sales of $25.30 million, below the estimate of $29.49 million, with a year-over-year decline of -24.5% [4] - Aftermarket Mobile Solutions reported net sales of $442 million, exceeding the estimate of $431.17 million, with a year-over-year increase of +4% [4] Earnings Before Income Taxes - Mobile Solutions reported earnings before income taxes of $95.50 million, above the estimate of $93.47 million [4] - Industrial Solutions reported earnings before income taxes of $40.90 million, below the estimate of $47.72 million [4] - Life Sciences reported a loss before income taxes of -$0.50 million, better than the estimated loss of -$1.22 million [4] - Corporate and unallocated reported a loss before income taxes of -$10.90 million, slightly worse than the estimate of -$10.67 million [4] Stock Performance - Donaldson's shares returned -1.5% over the past month, compared to the Zacks S&P 500 composite's -2.2% change, indicating relative stability [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - Donaldson reported quarterly earnings of $0.83 per share, missing the Zacks Consensus Estimate of $0.85 per share, but showing an increase from $0.81 per share a year ago, resulting in an earnings surprise of -2.35% [1] - The company posted revenues of $870 million for the quarter ended January 2025, missing the Zacks Consensus Estimate by 4.25%, and down from $876.7 million year-over-year [2] - Over the last four quarters, Donaldson has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Donaldson shares have increased by approximately 2.8% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for assessing future stock performance [4] - The current consensus EPS estimate for the coming quarter is $0.96 on revenues of $961.09 million, and for the current fiscal year, it is $3.64 on revenues of $3.74 billion [7] Industry Context - The Pollution Control industry, to which Donaldson belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Performance - Second quarter sales were $870.0 million, down 0.8% year over year, but up 0.9% in constant currency[1] - GAAP EPS for the second quarter was $0.79, a decrease of 2.2% compared to 2024, while adjusted EPS was $0.83, an increase of 2.5%[1] - Operating income margin decreased to 14.4%, down 40 basis points year over year, while adjusted operating margin increased to 15.2%[7][6] - Full-year adjusted EPS guidance is narrowed to between $3.60 and $3.68, with sales forecasted to be flat to up 4% compared to the prior year[9][10] - Net earnings for the six months ended January 31, 2025, were $194.9 million, up from $190.8 million in the same period of 2024, representing a growth of 1.6%[23] - The company reported net earnings of $95.9 million for the three months ended January 31, 2025, compared to $98.7 million in the same period last year[38] - Adjusted diluted EPS for the three months ended January 31, 2025, was $0.83, up from $0.81 in the prior year[39] - The adjusted EBITDA for the six months ended January 31, 2025, was $327.3 million, an increase from $311.9 million in the prior year[38] Segment Performance - The company generated sales growth in Aftermarket (up 4.0%), Aerospace and Defense (up 18.7%), and Life Sciences (up 9.2%) segments[3][5] - Mobile Solutions segment sales decreased 0.5%, with Off-Road and On-Road sales declining 12.8% and 24.4%, respectively[4] - Industrial Solutions segment sales decreased 3.7%, primarily due to volume declines, while Aerospace and Defense sales grew 18.7%[5] - The Mobile Solutions segment reported net sales of $870.0 million for the three months ended January 31, 2025, down 0.8% from $876.7 million in the same period of 2024[28] - The Industrial Solutions segment saw a 3.7% decrease in net sales to $253.7 million for the three months ended January 31, 2025, compared to $263.4 million in 2024[28] - Life Sciences segment net sales increased by 9.2% to $68.8 million for the three months ended January 31, 2025, compared to $63.0 million in 2024[28] - The Life Sciences segment showed a strong performance with a 12.8% increase in revenue for the six months ended January 31, 2025, driven by a 24.2% growth in the U.S./CA region[32] - The Aerospace and Defense sector within the Industrial Solutions segment experienced a significant revenue increase of 22.6% for the six months ended January 31, 2025[32] - The Aftermarket segment in Mobile Solutions saw a revenue increase of 7.3% for the six months ended January 31, 2025, with a 9.3% growth in the U.S./CA region[32] - The total revenue for the Industrial Solutions segment remained flat with a slight increase of 0.3% for the six months ended January 31, 2025[32] - The On-Road category in Mobile Solutions faced a decline of 19.5% for the six months ended January 31, 2025, particularly impacted in the U.S./CA region[32] Cash Flow and Investments - Capital expenditures are forecasted to be between $85 million and $100 million, with free cash flow conversion expected between 85% and 95%[13] - Free cash flow for the three months ended January 31, 2025, was reported at $71.5 million, compared to $65.8 million in the same period last year[38] - The cash conversion ratio improved to 74.4% for the three months ended January 31, 2025, compared to 66.7% in the same period of 2024[25] - The company anticipates repurchasing 2% to 3% of its outstanding shares during the fiscal year[13] Tax and Liabilities - The effective tax rate for the company was 23.2%, compared to 23.5% in the previous year[8] - The effective tax rate for the six months ended January 31, 2025, was 23.7%, down from 24.2% in the same period of 2024[25] - Total current liabilities decreased slightly to $765.8 million from $782.5 million, a reduction of 2.5%[21] Assets and Overall Growth - Total assets increased to $2,961.3 million as of January 31, 2025, compared to $2,914.3 million on July 31, 2024, reflecting a growth of 1.6%[21] - Total company revenue increased by 2.7% for the six months ended January 31, 2025, with a notable growth of 5.6% in the U.S./CA region[32]

Core Viewpoint - Wall Street analysts forecast that Donaldson (DCI) will report quarterly earnings of $0.85 per share, reflecting a year-over-year increase of 4.9%, with anticipated revenues of $908.65 million, showing a 3.6% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter, indicating that analysts have not changed their initial forecasts during this period [2]. - Changes in earnings projections are crucial for predicting investor reactions to the stock, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Estimates - Analysts estimate 'Net Sales- Industrial Solutions segment' at $277.26 million, indicating a year-over-year change of +5.3% [5]. - 'Net Sales- Mobile Solutions' is expected to reach $555.49 million, reflecting a change of +0.9% from the year-ago quarter [5]. - The 'Net Sales- Life Sciences segment' is projected to be $71.47 million, suggesting a year-over-year increase of +13.4% [5]. Segment-Specific Sales Estimates - 'Net Sales- Industrial Solutions- Industrial Filtration Solutions' is estimated at $238.85 million, indicating a +6.4% change from the prior-year quarter [6]. - 'Net Sales- Industrial Solutions- Aerospace and Defense' is projected to be $38.90 million, with no change from the year-ago quarter [6]. - 'Net Sales- Mobile Solutions- Off-Road' is expected to reach $92.06 million, reflecting a +0.2% change from the prior-year quarter [7]. - 'Net Sales- Mobile Solutions- On-Road' is estimated at $29.49 million, suggesting a -12% year-over-year change [7]. - 'Net Sales- Mobile Solutions- Aftermarket' is projected to be $431.17 million, indicating a +1.5% change year-over-year [8]. Earnings Before Income Taxes - The consensus estimate for 'Earnings / (loss) before income taxes- Mobile Solutions' is $93.47 million, down from $99.20 million reported in the same quarter last year [8]. - For 'Earnings / (loss) before income taxes- Industrial Solutions', the estimate stands at $47.72 million, slightly up from $47.40 million reported in the same quarter last year [9]. Stock Performance - Shares of Donaldson have shown a return of -4.8% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [9].

Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score assesses stocks based on recent price changes and earnings estimate trends to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] Stock Highlight: Donaldson Company, Inc. (DCI) - Donaldson Company, Inc. is a filtration systems manufacturer with a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for momentum investors [11] - The company has seen a 6.5% increase in share price over the past four weeks, with three analysts revising earnings estimates upwards for fiscal 2025 [11][12] - The Zacks Consensus Estimate for DCI has risen by $0.01 to $3.64 per share, with an average earnings surprise of 7.1%, making it a noteworthy option for investors [12]

Core Viewpoint - The company maintains a bullish stance on Donaldson Company, Inc. (NYSE: DCI) despite its returns trailing the S&P 500 in previous bullish commentaries [1]. Group 1: Investment Strategy - The investment strategy focuses on buying undervalued profitable stocks with strong balance sheets and minimal debt [1]. - The company also engages in writing calls against positions to generate additional income when opportunities arise [1]. - Risk management is implemented through position sizing and the use of trailing stop losses over time [1].

Core Viewpoint - Donaldson Company, Inc. (DCI) is highlighted as a stock to watch due to its upward earnings estimate revisions and solid performance metrics, making it an attractive option for investors [12][25]. Company Overview - Donaldson Company, Inc. is headquartered in Bloomington, MN, and specializes in manufacturing and selling filtration systems and replacement parts globally. The company was founded in 1915 [11]. Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $3.64 per share. DCI has an average earnings surprise of 7.1% [12]. Zacks Rank and Style Scores - DCI currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid position in the market [25]. - The company also boasts a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 18.68, which is appealing to value investors [20]. Investment Potential - With a strong Zacks Rank and top-tier Value and VGM Style Scores, DCI is recommended for investors looking for potential growth opportunities [26].

For Immediate ReleaseChicago, IL – December 12, 2024 – Today, Zacks Equity Research Donaldson Co., Inc. (DCI) , Tetra Tech, Inc. (TTEK) and Atmus Filtration Technologies Inc. (ATMU) .Industry: Pollution ControlLink: https://www.zacks.com/commentary/2381985/3-pollution-control-stocks-poised-to-gain-on-prospering-industry-trendsThe Zacks Pollution Control industry is well-poised to benefit from the healthy demand for air pollution abatement products, thanks to rising greenhouse gas emissions and growing aware ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q _____________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

Donaldson Company, Inc. (DCI) reported first-quarter fiscal 2025 (ended Oct. 31, 2024) adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 82 cents. The bottom line increased 10.7% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.DCI’s Revenue ResultsTotal revenues of $900.1 million beat the Zacks Consensus Estimate of $891 million. The top line increased 6.4% year over year (up 5% at constant currency), driven by strength in afterm ...