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.
Comments