Filtration equipment manufacturer Donaldson (NYSE:DCI) will be reporting earnings this Wednesday before market open. Here's what investors should know.
Donaldson beat analysts' revenue expectations last quarter, reporting revenues of $995.1 million, up 5.9% year on year. It was a strong quarter for the company, with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' EBITDA estimates.
Is Donaldson a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members.
This quarter, the market is expecting Donaldson's revenue to grow 6.6% year on year, improving from the 4.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Donaldson has missed Wall Street's revenue estimates multiple times over the last two years.
Looking at Donaldson's peers in the gas and liquid handling segment, some have already reported their Q2 results, giving us a hint as to what we can expect. SPX Technologies delivered year-on-year revenue growth of 22.9%, beating analysts' expectations by 5.8%, and Parker-Hannifin reported revenues up 9.8%, topping estimates by 3.3%. SPX Technologies traded up 10.2% following the results while Parker-Hannifin was also up 7.7%.
Read our full analysis of SPX Technologies's results here and Parker-Hannifin's results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the gas and liquid handling stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Donaldson's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $98.80 (compared to the current share price of $92.47).
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