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Donaldson (NYSE:DCI) announces its next round of earnings this Thursday, December 03. Here is Benzinga's look at Donaldson's Q1 earnings report.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Sell-side analysts expect Donaldson's EPS to be near $0.44 on sales of $614.99 million. Donaldson EPS in the same period a year ago totaled $0.51. Sales were $672.70 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Thursday, earnings would be down 13.73%. Revenue would be down 8.58% from the same quarter last year. Donaldson's reported EPS has stacked up against analyst estimates in the past like this:
Shares of Donaldson were trading at $53.31 as of December 01. Over the last 52-week period, shares are down 2.84%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Donaldson is scheduled to hold the call at 10:00:00 ET and can be accessed here.
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