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Oct 31, 2023
Donaldson Q1 2024 Earnings Report
Donaldson's first quarter earnings reflected flat sales and increased EPS.
Key Takeaways
Donaldson reported flat sales of $846.3 million and an EPS of $0.75, up 6.8% versus 2023 GAAP EPS of $0.70. The company's performance was driven by gross margin strength from robust operational performance, with Industrial Solutions being a particular area of strength.
First quarter sales were $846.3 million compared to $847.3 million in fiscal 2023.
EPS of $0.75, up 6.8% versus 2023 GAAP EPS of $0.70.
Gross margin was 35.6%, up 170 basis points from 33.9% in 2023.
Fiscal 2024 sales and EPS projected at record levels, consistent with previous guidance.
Donaldson
Donaldson
Donaldson Revenue by Geographic Location
Revenue by Geographic Location
U.S. / Canada Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Full-year EPS is forecast to be between $3.14 and $3.30. Sales are expected to increase between 3% and 7% year over year.
Positive Outlook
- Sales are expected to increase between 3% and 7% year over year, with a pricing benefit of approximately 2% and a currency translation tailwind of roughly 1%.
- Mobile sales are forecast to increase between 1% and 5% versus 2023.
- Aftermarket sales are projected to increase mid-single digits as a result of higher vehicle utilization rates and market share gains.
- Industrial sales are expected to increase between 3% and 7% compared with prior year.
- Life Sciences sales are forecast to grow approximately 20% compared with 2023 benefitting from increases across all businesses including Food & Beverage, Bioprocessing Equipment and Consumables, and Disk Drive.
Challenges Ahead
- Softening end-market conditions, including in China, are expected to drive a mid-single digit decline in Off-Road sales and flat On-Road sales versus prior year.
- Operating margin is expected to be between 14.7% and 15.3% versus 14.0%, or 14.6% on an adjusted basis, in 2023 with year-over-year gross margin improvement partially offset by investments in the Life Sciences segment.
- Interest expense is forecast to be approximately $23 million.
- Capital expenditures are forecast to be between $95 million and $115 million.
- For the full year, Donaldson anticipates repurchasing approximately 2% of its shares outstanding.
Revenue & Expenses
Visualization of income flow from segment revenue to net income