Stock Track | Donaldson Stock Drops Despite Q4 Earnings Beat on Softer Sales Outlook

Stock Track08-28

Shares of Donaldson Company (DCI) fell 6.13% on Tuesday, despite the company reporting better-than-expected earnings for the fourth quarter of fiscal 2024. The stock's decline was likely driven by a slight miss on revenue and a softer sales outlook for fiscal 2026.

For the fourth quarter, Donaldson reported adjusted earnings per share of $0.94, beating analysts' estimates of $0.89. However, revenue of $935.4 million narrowly missed expectations of $942.8 million.

While Donaldson raised its adjusted EPS guidance for fiscal 2025 to a range of $3.56 to $3.72, the company slightly lowered its sales growth outlook for fiscal 2026 to 3-7%, down from the previous range of 4-8%. This revision was attributed to weaker conditions in the Life Sciences segment.

The Life Sciences segment posted strong growth of 20.7% in the fourth quarter, driven by volume growth in disk drive and food and beverage markets. However, the Mobile Solutions and Industrial Solutions segments reported more modest growth of 6.1% and 3.9%, respectively.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment