Donaldson (NYSE:DCI) Stock

Donaldson

Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.

Donaldson Co Inc

DCI ADVISORS LTD by DCI ADVISORS LTD

Baird analyst Richard Eastman maintains Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) with a Outperform and raises the price target from $76 to $78.

News

Price Target

Analyst Ratings

Baird Maintains Outperform on Donaldson, Raises Price Target to $78

WIIM

DCI stock has given up its prior gain. Donaldson shares were trading higher after the company raised its FY25 adjusted EPS guidance above estimates.

Donaldson Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) announced its <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/b45741021/donaldson-reports-third-quarter-fiscal-year-2025-sales-and-earnings" rel="noreferrer noopener">third-quarter results</a> on Tuesday. Sales rose 1.3%&nbsp;year over year (Y/Y) to&nbsp;$940.1 million,&nbsp;led by favorable pricing and volume growth. It missed the consensus estimate of&nbsp;$943.02 million.
GAAP net earnings significantly decreased to $57.8 million (or 48 cents per share) from $113.5 million (or 92 cents per share) in the prior year. This drop was primarily due to $65.8 million in pre-tax, non-recurring net charges, including a substantial $62.0 million impairment of intangible assets for two upstream bioprocessing businesses.
The company reported adjusted EPS of&nbsp;99 cents&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">in line with the consensus</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/health-care/25/06/45743008/mercks-dealmaking-intensifies-with-moonlake-bid-as-keytruda-patent-cliff-nears-report" rel="noreferrer noopener">Merck&#8217;s Dealmaking Intensifies With MoonLake Bid As Keytruda Patent Cliff Nears: Report</a>
By Segment, Mobile Solutions sales declined 0.4% Y/Y due to lower volumes, and aftermarket sales rose 3.3% Y/Y, aided by strong OE channel demand and independent channel market share gains.
Industrial Filtration Solutions sales upped 5.3% Y/Y&nbsp;on strong volume and pricing growth, while Aerospace and Defense sales rose&nbsp;27.1%&nbsp;Y/Y, led by strong Aerospace end-market conditions.
Life Sciences segment sales increased&nbsp;0.7% Y/Y, led by continued strength in Disk Drive market and higher Food and Beverage replacement part sales.
Gross margin stood at&nbsp;34.2%&nbsp;in the quarter compared to 35.6% a year ago quarter owing to higher manufacturing costs, including footprint optimization initiatives.&nbsp;
Year-to-date, Donaldson paid&nbsp;$96.9&nbsp;million&nbsp;in dividends and repurchased shares worth&nbsp;$273.8&nbsp;million.
Last month, the Board of Directors increased cash dividend per share by 11.1% from the prior quarterly dividend&nbsp;to 30 cents, payable on June 30, 2025, to&nbsp;shareholders&nbsp;of record <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45701926/donaldson-company-increases-quarterly-cash-dividend-11-1" rel="noreferrer noopener">as&nbsp;on June 16, 2025</a>.
Donaldson revised its&nbsp;FY25 guidance&nbsp;for adjusted EPS to $3.64-$3.70&nbsp;(vs. consensus of&nbsp;$3.60) from the&nbsp;previous <a target="_blank" href="https://www.benzinga.com//node/44008563" rel="noreferrer noopener">range of&nbsp;$3.60-$3.68</a>.
The company revised sales growth to be up 1%&nbsp;to&nbsp;3%&nbsp;(vs. earlier guidance of flat to up&nbsp;4%), with pricing expected to contribute one percentage point of the increase and impacts from currency translation and tariffs to be immaterial.
Donaldson projects mobile sales growth to be&nbsp;flat to up 2% (vs. down&nbsp;1%&nbsp;to up&nbsp;3% prior), Industrial sales growth of&nbsp;2% and 4% (vs. 1%&nbsp;to&nbsp;5% earlier), and Life Sciences sales to increase in the high single digits.
For the full year, Donaldson anticipates repurchasing approximately&nbsp;3.5% and 4.0%&nbsp;of its shares outstanding.
Tod Carpenter, chairman, president, and chief executive officer, said, &#8220;For the full year, we expect to generate record sales and adjusted earnings. Importantly, our region-for-region footprint combined with the speed of decision making following our organizational redesign contribute to our expectation that the net impact on earnings from current tariffs will be immaterial.&#8221;
Investors can gain exposure to the stock via&nbsp;VanEck Green Infrastructure ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RNEW#NASDAQ">RNEW</a>) and&nbsp;VanEck Environmental Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EVX#NYSE">EVX</a>).
Price Action: DCI shares are trading higher by 6.98% to $74.00 premarket at last check Tuesday.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/futures/25/06/45740778/us-stocks-likely-to-open-lower-expert-highlights-technical-analysis-showing-sp-500s-recovery-is-real-and-not-a-bull-trap-or-bear-market-rally" target="_blank" rel="noreferrer noopener">US Stocks Likely To Open Lower: Expert Highlights Technical Analysis Showing S&amp;P 500&#8217;s &#8216;Recovery Is Real&#8217; And Not A &#8216;Bull Trap&#8217; Or &#8216;Bear Market Rally&#8217;</a></li>
</ul>
Photo via Shutterstock

Earnings

Guidance

Movers

Market Vectors Environmental Services Index Fund

RNEW

Donaldson CEO Says Tariff Impact Is Immaterial, Raises Annual Profit Outlook

Donaldson shares are trading higher after the company raised its FY25 adjusted EPS guidance above estimates.

Donaldson Revised Guidance For FY25 Sales To Be Up 1% To 3% (From Flat To Up 4% Earlier)

Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) raises FY2025 Adj EPS guidance from $3.60-$3.68 to $3.64-$3.70 vs $3.60 analyst estimate..

Donaldson Raises FY2025 Adj EPS Guidance from $3.60-$3.68 to $3.64-$3.70 vs $3.60 Est

Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) reported quarterly earnings of $0.99 per share which met the analyst consensus estimate. This is a 7.61 percent increase over earnings of $0.92 per share from the same period last year. The company reported quarterly sales of $940.10 million which missed the analyst consensus estimate of $943.02 million by 0.31 percent. This is a 1.31 percent increase over sales of $927.90 million the same period last year.

Earnings Misses

Donaldson Q3 Adj. EPS $0.99, Inline, Sales $940.10M Miss $943.02M Estimate

U.S. stock futures fell on Tuesday, pulling back after a higher close on Monday. Futures of major benchmark indices declined in premarket.
Trade tensions escalated as <a href="https://www.benzinga.com/news/politics/25/06/45715447/xi-jinpings-china-dismisses-trumps-groundless-accusations-on-geneva-trade-deal-breach-vows-strong-retaliation">China&#8217;s Commerce Ministry dismissed</a> President Donald Trump&#8216;s allegations that Beijing had violated the Geneva trade agreement. The ministry asserted that China had fully implemented and consistently honored the deal struck last month in Geneva.
The Chinese government declared that the U.S. had &#8220;groundlessly&#8221; accused China of breaching the trade agreement. It pledged to take strong action to protect its interests.
Meanwhile, the 10-year Treasury bond yielded 4.41% and the two-year bond was at 3.92%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 95.3% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Futures</td>
<td>Change (+/-)</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>-0.43%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.46%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.42%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.49%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.45% at $590.04, while the QQQ declined 0.36% to $521.35, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Cues From Last Session:
U.S. stocks wrapped up Monday higher. Most sectors within the S&amp;P 500 ended positively, spearheaded by strong performances in energy, communication services, and information technology stocks. However, industrial stocks went against the grain, finishing the session lower.
Wall Street closed out last month strong, with the S&amp;P 500 up more than 6.2% in May and the Nasdaq surging 9.6%. Both indices had their best months since November 2023, while the Dow gained 3.9% for the month.
Trade tensions flared as President Trump announced weekend plans to <a href="https://www.benzinga.com/news/topics/25/05/45708977/trump-doubles-steel-tariffs-to-50-saying-it-will-secure-american-jobs-backs-us-steels-takeover-by-japans-nippon">double tariffs on steel and aluminum</a> imports to 50% starting June 4. 
In corporate news, Campbell&#8217;s Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPB#NASDAQ">CPB</a>) reported better-than-expected third-quarter results. Meanwhile, Lyra Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYRA#NASDAQ">LYRA</a>) shares skyrocketed over 310% on Monday after its ENLIGHTEN 2 Phase 3 trial of LYR-210 met its primary endpoint.
On the economic front, the ISM manufacturing PMI dropped to 48.5 in May from April&#8217;s 48.7, missing market estimates of 49.5. U.S. construction spending also fell, declining 0.4% month-over-month in April to an annual rate of $2,152.4 billion, following a revised 0.8% drop in March.
The Dow Jones index ended 35 points or 0.084% higher at 42,305.48, whereas the S&amp;P 500 index rose 0.41% to 5,935.94. Nasdaq Composite advanced 0.67% to 19,242.61, and the small-cap gauge, Russell 2000, gained 0.19% to end at 2,070.16.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>0.67%</td>
<td>19,242.61</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>0.041%</td>
<td>5,935.94</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>0.084%</td>
<td>42,305.48</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>0.19%</td>
<td>2,070.16</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
As the S&amp;P 500 index rebounded from its April slump, Adam Turnquist, LPL Financial's chief technical strategist, pointed to strong indicators of a genuine recovery, noting the index&#8217;s reversal of its short-term downtrend and a doubling of its uptrend during this period.
A chart from LPL Financial illustrates this shift: on April 8, the S&amp;P 500&#8217;s uptrend accounted for just 29.4%, with downtrends at 70.2%. By May 29, however, the index had swiftly recovered, with uptrends doubling to 60% and downtrends decreasing to 39%.
LPL Financial attributed this change to <a href="https://www.benzinga.com/markets/equities/25/06/45739065/sp-500-reverses-short-term-downtrend-after-april-lows-technical-evidence-shows-recovery-is-real-and-not-a-bull-trap-or-bear-market-rally">significant technical progress</a> throughout May. He explained, "The index has reversed a short-term downtrend and continues to hold above its recent price gap above the 200-day moving average (dma)."
Turnquist suggests that a close above the May high of 5,969 points could pave the way for the index to retest its previous high of 6,144 points.
He emphasized, "There is a growing list of technical evidence that suggests this recovery is real, and not a ‘bull trap' or ‘bear market rally.' For investors, this means dips above support should be used as buying opportunities."
This positive outlook follows a strong May for the broader market, which saw a 6.2% gain—its best month since November 2023 and its strongest May since 1990. Turnquist also noted that historically, when the index rallies 3% or more in May, a month often associated with the &#8220;Sell in May and Go Away&#8221; adage, year-end returns average 8.9%, with positive returns in 73% of such periods.
Meanwhile, the Senior Economist at WisdomTree and former professor at the University of Pennsylvania, Jeremy Siegel, said, &#8220;I remain bullish on equities presuming tariffs remain in the 10% for all, 30% for China, range.&#8221;
Highlighting that Trump has doubled the tariffs on steel and aluminum, Seigel added, &#8220;If he goes no further, the current upward trend can continue. The market's resilience, despite noise on tariffs, inflation, and politics, tells me that investors see the same economy I do: strong productivity, solid consumer spending, and stabilizing inflation.&#8221;
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>
Upcoming Economic Data
Here&#8217;s what investors will keep an eye on Tuesday:
<ul class="wp-block-list">
<li>April&#8217;s factory orders and job openings data will be out by 10:00 a.m. ET.</li>
<li>Chicago Fed President Austan Goolsbee will speak at 12:45 p.m., Federal Reserve Governor Lisa Cook will speak at 1:00 p.m., and Dallas Fed President Lorie Logan will speak at 3:30 p.m. ET.</li>
</ul>
Stocks In Focus:
<ul class="wp-block-list">
<li>Dollar General Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) rose 1.37% in premarket on Tuesday as analysts expect it to report quarterly earnings of $1.48 per share on revenue of $10.31 billion, before the opening bell.</li>
<li>Signet Jewelers Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SIG#NYSE">SIG</a>) was up 1.80% ahead of its earnings, which are supposed to be released before the opening bell. Analysts expect earnings of $1.03 per share on revenue of $1.52 billion.</li>
<li>Ferguson Enterprises Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FERG#NYSE">FERG</a>) declined 0.99% as analysts expect it to report quarterly earnings of $2.02 per share on revenue of $7.42 billion, before the opening bell.</li>
<li>Credo Technology Group Holding Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>) jumped 12.8% after reporting fourth-quarter revenue of $170.03 million, beating analyst estimates of $162.96 million.</li>
<li>MoonLake Immunotherapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MLTX#NASDAQ">MLTX</a>) surged 19.05% following reports that Merck held talks to acquire the Swiss biotech company for over $3 billion.</li>
<li>Donaldson Company Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) fell 0.39% ahead of its earnings, which are supposed to be released before the opening bell. Analysts expect earnings of 95 cents per share on revenue of $933.45 million.</li>
<li>Ollie&#8217;s Bargain Outlet Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OLLI#NASDAQ">OLLI</a>) edged 0.45% higher as analysts expect it to report quarterly earnings of 71 cents per share on revenue of $565.75 million, before the opening bell.</li>
<li>Rocket Lab USA Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) was trading 0.90% higher after the successful launch of the 10th Electron mission for multi-launch customer BlackSky.</li>
</ul>
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 0.34% to hover around $62.73 per barrel.
Gold Spot US Dollar fell 0.58% to hover around $3,361.51 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.21% at the 98.9110 level.
Asian markets closed mixed on Tuesday as India's S&amp;P BSE Sensex, Japan's Nikkei 225 indices declined. While South Korea's Kospi, Australia's ASX 200, China&#8217;s CSI 300, and Hong Kong's Hang Seng indices rose. European markets were lower in early trade.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/economic-data/25/06/45740592/trump-sets-july-8-deadline-for-trade-deals-demands-best-offers-from-global-partners-by-wednesday-report">Trump Sets July 8 Deadline For Trade Deals, Demands Best Offers From Global Partners By Wednesday: Report</a></li>
</ul>
Photo courtesy: Shutterstock

Pre-Market Outlook

CRDO

FERG

LYRA

MLTX

OLLI

RKLB

US Stocks Likely To Open Lower: Expert Highlights Technical Analysis Showing S&P 500's 'Recovery Is Real' And Not A 'Bull Trap' Or 'Bear Market Rally'

<h3>Companies Reporting Before The Bell</h3>
• NIO (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) is likely to report quarterly loss at $0.22 per share on revenue of $1.71 billion. 
• National Energy Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NESR#NASDAQ">NESR</a>) is projected to report earnings for its first quarter. 
• Ollie's Bargain Outlet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OLLI#NASDAQ">OLLI</a>) is projected to report quarterly earnings at $0.77 per share on revenue of $570.27 million. 
• Citi Trends (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTRN#NASDAQ">CTRN</a>) is expected to report quarterly loss at $0.26 per share on revenue of $193.28 million. 
• Ferguson Enterprises (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FERG#NYSE">FERG</a>) is likely to report quarterly earnings at $2.29 per share on revenue of $7.45 billion. 
• Signet Jewelers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SIG#NYSE">SIG</a>) is estimated to report quarterly earnings at $1.27 per share on revenue of $1.54 billion. 
• Dollar General (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) is estimated to report quarterly earnings at $1.46 per share on revenue of $10.25 billion. 
• Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) is likely to report quarterly earnings at $0.96 per share on revenue of $960.74 million. 
<h3>Companies Reporting After The Bell</h3>
• Yext (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YEXT#NYSE">YEXT</a>) is estimated to report quarterly earnings at $0.14 per share on revenue of $113.64 million. 
• Guidewire Software (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>) is likely to report quarterly earnings at $0.42 per share on revenue of $279.91 million. 
• Sportsman's Warehouse (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPWH#NASDAQ">SPWH</a>) is expected to report quarterly loss at $0.47 per share on revenue of $238.25 million. 
• Mama's Creations (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAMA#NASDAQ">MAMA</a>) is projected to report quarterly earnings at $0.02 per share on revenue of $32.74 million. 
• CrowdStrike Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) is estimated to report quarterly earnings at $0.96 per share on revenue of $1.11 billion. 
• Couchbase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BASE#NASDAQ">BASE</a>) is estimated to report earnings for its first quarter. 
• Hewlett Packard (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) is expected to report quarterly earnings at $0.50 per share on revenue of $7.92 billion. 
• HealthEquity (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HQY#NASDAQ">HQY</a>) is projected to report quarterly earnings at $0.89 per share on revenue of $320.41 million. 
• Asana (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASAN#NYSE">ASAN</a>) is projected to report quarterly earnings at $0.02 per share on revenue of $185.47 million. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ASAN

BASE

CRWD

CTRN

GWRE

MAMA

NESR

SPWH

YEXT

Earnings Scheduled For June 3, 2025

Donaldson Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) will release its third-quarter financial results before the opening <a href="https://www.benzinga.com/quote/DCI/earnings">bell on Tuesday, June 3.</a>
Analysts expect the Bloomington, Minnesota-based company to report quarterly earnings at 95 cents per share, up from 92 cents per share in the year-ago period. Donaldson projects quarterly revenue of $933.45 million, compared to $927.9 million a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On June 2, Donaldson named Richard Lewis as Chief Operating Officer, effective Aug. 1.
Donaldson shares fell 0.6% to close at $69.17 on Monday.
Benzinga readers can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock Ratings</a> page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate <a href="https://www.benzinga.com/quote/dci/analyst-ratings">analysts have rated the company</a> in the recent period.
<ul class="wp-block-list">
<li>Stifel analyst Nathan Jones maintained a Hold rating and cut the price target from $70 to $63 on April 14, 2025. This analyst has an accuracy rate of 78%.</li>
<li>Baird analyst Richard Eastman maintained an Outperform rating and boosted the price target from $81 to $83 on Dec. 4, 2024. This analyst has an accuracy rate of 74%.</li>
<li>Raymond James analyst Tim Thein initiated coverage on the stock with a Market Perform rating on June 28, 2024. This analyst has an accuracy rate of 68%.</li>
</ul>
Considering buying DCI stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><a href="https://www.benzinga.com/quote/DCI/earnings"><img loading="lazy" decoding="async" width="1024" height="582" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/03030125/image-15-1024x582.png" alt="" class="wp-image-936122" style="width:602px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/03030125/image-15-1024x582.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/03030125/image-15-300x170.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/03030125/image-15-768x436.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/03030125/image-15.png 1132w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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</ul>
Photo via Shutterstock

Markets

Trading Ideas

Donaldson Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Management

Donaldson Appoints Richard Lewis Chief Operating Officer, Effective August 1, 2025

Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) is preparing to release its quarterly earnings on Tuesday, 2025-06-03. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Donaldson to report an earnings per share (EPS) of $0.96.
The announcement from Donaldson is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Earnings Track Record</h3>
Last quarter the company missed EPS by $0.02, which was followed by a 2.22% increase in the share price the next day.
Here's a look at Donaldson's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2025</th>
<th>Q1 2025</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.85</td>
<td>0.82</td>
<td>0.88</td>
<td>0.83</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.83</td>
<td>0.83</td>
<td>0.94</td>
<td>0.92</td>
</tr>
<tr>
<td>Price Change %</td>
<td>2.0%</td>
<td>1.0%</td>
<td>-0.0%</td>
<td>2.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2025/1748872873_0.png" alt="eps graph" />
<h3>Performance of Donaldson Shares</h3>
Shares of Donaldson were trading at $69.55 as of May 30. Over the last 52-week period, shares are down 6.16%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. 
<h3>Analysts' Perspectives on Donaldson</h3>
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Donaldson.
A total of 1 analyst ratings have been received for Donaldson, with the consensus rating being Neutral. The average one-year price target stands at $63.0, suggesting a potential 9.42% downside.
<h3>Understanding Analyst Ratings Among Peers</h3>
The below comparison of the analyst ratings and average 1-year price targets of Watts Water Technologies, Middleby and ESAB, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
<ul>
<li>Analysts currently favor an Buy trajectory for Watts Water Technologies, with an average 1-year price target of $229.0, suggesting a potential 229.26% upside.</li>
<li>Analysts currently favor an Outperform trajectory for Middleby, with an average 1-year price target of $174.33, suggesting a potential 150.65% upside.</li>
<li>Analysts currently favor an Neutral trajectory for ESAB, with an average 1-year price target of $129.4, suggesting a potential 86.05% upside.</li>
</ul>
<h3>Key Findings: Peer Analysis Summary</h3>
The peer analysis summary outlines pivotal metrics for Watts Water Technologies, Middleby and ESAB, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Donaldson</td>
<td>Neutral</td>
<td>-0.76%</td>
<td>$305.90M</td>
<td>6.21%</td>
</tr>
<tr>
<td>Watts Water Technologies</td>
<td>Buy</td>
<td>-2.26%</td>
<td>$272.50M</td>
<td>4.25%</td>
</tr>
<tr>
<td>Middleby</td>
<td>Outperform</td>
<td>-2.19%</td>
<td>$345.93M</td>
<td>2.51%</td>
</tr>
<tr>
<td>ESAB</td>
<td>Neutral</td>
<td>-1.68%</td>
<td>$255.20M</td>
<td>3.66%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Donaldson is at the top for Gross Profit and Return on Equity among its peers. However, it is at the bottom for Revenue Growth.
<h3>Get to Know Donaldson Better</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Donaldson: Financial Performance Dissected</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Challenges: Donaldson's revenue growth over 3 months faced difficulties. As of 31 January, 2025, the company experienced a decline of approximately -0.76%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Donaldson's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 11.02%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Donaldson's ROE excels beyond industry benchmarks, reaching 6.21%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Donaldson's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.19% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Donaldson's debt-to-equity ratio is below the industry average. With a ratio of 0.37, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<a href="https://www.benzinga.com/quote/DCI/earnings">To track all earnings releases for Donaldson visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Donaldson Earnings Preview

Donaldson Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) today announced that its Board of Directors declared a regular cash dividend of 30.0 cents per share, an increase of 11.1% from the prior quarterly dividend of 27.0 cents per share. The dividend is payable June 30, 2025, to shareholders of record on June 16, 2025. Donaldson is a member of the S&amp;P High-Yield Dividend Aristocrats Index and calendar year 2024 marked the 29th consecutive year of annual dividend increases. The Company has paid a cash dividend every quarter for 69 years.

Dividends

Donaldson Company Increases Quarterly Cash Dividend From $0.27 To $0.30 Per Share

On May 14, 2025, Thomas R. Scalf, President, Enterprise Operations and Supply Chain, notified Donaldson Company, Inc. (the "Company") of his decision to retire, effective at the close of business on August 1, 2025.
 &nbsp;
Following his retirement from employment with the Company, Mr. Scalf will provide certain consulting services to the Company through December 31, 2025, to facilitate a smooth transition of his responsibilities. Pursuant to the Consulting Agreement between the Company and Mr. Scalf, entered into on May 14, 2025, Mr. Scalf will receive $40,000 per month during the five-month consulting period.
 &nbsp;

Donaldson Co's Thomas R. Scalf To Retire As President On August 1, 2025

General

Donaldson Life Sciences' Univercells Technologies Announces The Launch Of Its scale-X Nitro Controller

<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.isolerebio.com%2F&amp;esheet=54243241&amp;newsitemid=20250424252130&amp;lan=en-US&amp;anchor=Isolere+Bio+by+Donaldson&amp;index=1&amp;md5=3db5e8d0847384827cd19b0b45763e74">Isolere Bio by Donaldson</a>, an innovative bioprocessing technology provider, proudly announces the availability of its manufacturing-grade IsoTag&#x2122; AAV reagent for the purification of Adeno-associated Virus (AAV) vectors. As indicated <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.isolerebio.com%2Farticles%2Fresearch-grade-isotag-aav-reagent-announcement&amp;esheet=54243241&amp;newsitemid=20250424252130&amp;lan=en-US&amp;anchor=during+the+launch+of+the+research-grade+reagent&amp;index=2&amp;md5=2fe070e9555e7100349c16f41a752593">during the launch of the research-grade reagent</a> in October 2024, this final advancement in product grade now includes production with validated processes and the availability of a full suite of documentation, including a Regulatory Support File (RSF), validation guide and full design history upon customer request. Additionally, the U.S. Food and Drug Administration (FDA) has acknowledged its receipt of the recently submitted Drug Master File (DMF) for the IsoTag&#x2122; AAV reagent, which will support and streamline clinical manufacturing using the reagent.
 &nbsp;

Isolere Bio By Donaldson Announces Availability Of Manufacturing-grade IsoTag AAV Reagent For Purification Of AAV Vectors

In the current session, Donaldson Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) is trading at $61.70, after a 1.66% decrease. Over the past month, the stock decreased by 9.65%, and in the past year, by 14.83%. With performance like this, long-term shareholders are more likely to start looking into the company's price-to-earnings ratio. 

<img src="https://www.benzinga.com/files/images/story/2025/1745272822_0.png" alt="Past Year Chart" />

<h3>Comparing Donaldson P/E Against Its Peers</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Compared to the aggregate P/E ratio of the 25.15 in the Machinery industry, Donaldson Inc. has a lower P/E ratio of 18.35. Shareholders might be inclined to think that the stock might perform worse than it's industry peers. It's also possible that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1745272822_1.png" alt="Guage" />

In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company's market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company's stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

Intraday Update

Price Over Earnings Overview: Donaldson

Stifel analyst Nathan Jones maintains Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) with a Hold and lowers the price target from $70 to $63.

Stifel Maintains Hold on Donaldson, Lowers Price Target to $63

In a new SEC filing on April 11, it was revealed that Owens, Board Member at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>), executed a significant exercise of company stock options.
What Happened: Owens, Board Member at Donaldson, exercised stock options for 18,700 shares of DCI stock. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964425000045//Archives/edgar/data/29644/000002964425000045/0000029644-25-000045-index.htm">U.S. Securities and Exchange Commission</a> on Friday. The exercise price of the options was $28.43 per share.
As of Friday morning, Donaldson shares are down by 0.0%, with a current price of $62.15. This implies that Owens's 18,700 shares have a value of $630,564.
<h3>Delving into Donaldson's Background</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Breaking Down Donaldson's Financial Performance</h3>
Revenue Challenges: Donaldson's revenue growth over 3 months faced difficulties. As of 31 January, 2025, the company experienced a decline of approximately -0.76%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Holistic Profitability Examination:
<ul>
<li>
Gross Margin: With a low gross margin of 35.16%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Donaldson exhibits below-average bottom-line performance with a current EPS of 0.8.
</li>
</ul>
Debt Management: Donaldson's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.37.
Insights into Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Donaldson's P/E ratio of 18.17 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: With a P/S ratio of 2.09 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a below-average EV/EBITDA ratio of 11.83, Donaldson presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
</li>
</ul>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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<h3>Navigating the Impact of Insider Transactions on Investments</h3>
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>Breaking Down the Significance of Transaction Codes</h3>
When dissecting transactions, the focal point for <a href="https://www.benzinga.com/money/investing-tools">investors</a> is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Major Exercise Alert: James Owens Exercises Options Worth $630K At Donaldson

Ginkgo Bioworks and partners awarded $29 million contract by ARPA-H to develop distributed manufacturing of essential medicines using wheat germ cell-free expression systems

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