What's in the Offing for Donaldson (DCI) in Q4 Earnings?
Donaldson Company, Inc DCI is scheduled to release fourth-quarter fiscal 2023 (ended Jul 31, 2023) earnings numbers on Aug 29, before market open.
The company has an impressive earnings surprise history. It trumped the Zacks Consensus Estimate in three of the preceding four quarters, while matching estimates in one. The average beat was 4.6%.
Let’s see how things have shaped up for Donaldson’s fiscal fourth quarter.
Donaldson Company, Inc. Price and EPS Surprise
Donaldson Company, Inc. price-eps-surprise | Donaldson Company, Inc. Quote
Factors to Note
Weakness in the Life Sciences segment due to continued disk drive market softness is likely to have weighed on Donaldson’s fiscal fourth-quarter performance. The adversity is likely to have been partly offset by the June 2023 acquisition of Univercells Technologies.
The escalating cost of sales and selling, general and administrative expenses, might have dented the company’s bottom line. Foreign currency headwinds are likely to have dented DCI’s top line. Nevertheless, the acquisitions of Isolere Bio and Purilogics are expected to have contributed to the top line.
The Mobile Solutions segment is expected to have benefited from high levels of global equipment production in Off-Road and On-Road and pricing actions. The Zacks Consensus Estimate for Mobile Solutions revenues indicates a 1.8% increase from the sequential quarter’s reported figure.
Strength in the commercial aerospace industry and industrial gases’ part sales are expected to have aided the Industrial Solutions segment. The consensus mark for segmental revenues suggests an approximate 2% increase from the sequential quarter’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Donaldson’s fiscal fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here, as you will see below.
Earnings ESP: Donaldson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 78 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Donaldson currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Donaldson’s third-quarter fiscal 2023 earnings of 76 cents per share beat the Zacks Consensus Estimate by 2.7% and sales beat the same by 0.5%. The bottom line improved 13.4% from the year-ago fiscal quarter’s figure of 67 cents per share. Net sales of $875.7 million inched up 2.6% year over year.
Performance of Some Industrial Companies
Below we discuss some industrial companies that recently reported earnings numbers.
Enersys ENS, carrying a Zacks Rank #2, reported first-quarter fiscal 2024 (ended Jul 2, 2023) adjusted earnings (excluding 29 cents from non-recurring items) of $1.89 per share, which surpassed the Zacks Consensus Estimate of $1.80. The bottom line surged 64.4% year over year due to lower cost of sales. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enersys’ total revenues of $908.6 million missed the Zacks Consensus Estimate of $953 million. The top line inched up 1.1% year over year due to a 9% increase in price/mix. Organic sales in the quarter decreased 8%.
Berry Global Group, Inc. BERY, carrying a Zacks Rank #3, reported third-quarter fiscal 2023 (ended Jul 1, 2023) adjusted earnings (excluding 72 cents from non-recurring items) of $1.90 per share, which missed the Zacks Consensus Estimate of $1.97. The bottom line decreased 6.4% year over year, primarily due to weakness in the consumer and industrial end markets.
Berry Global’s net sales of $3,229 million missed the Zacks Consensus Estimate of $3,461.6 million. The top line decreased 13.3% year over year due to a 7% dip in volumes, and lower selling prices, which declined $250 million due to the pass-through of lower resin costs.
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Donaldson Company, Inc. (DCI) : Free Stock Analysis Report
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