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Apr 30, 2021
Donaldson Q3 2021 Earnings Report
Donaldson's third quarter sales were the highest in its history, driven by strength in the Engine segment and recovery in the Industrial segment.
Key Takeaways
Donaldson reported record third-quarter sales of $765 million, a 21.5% increase year-over-year. EPS increased 32% to $0.66. The company raised its fiscal year 2021 sales guidance to 9-11% growth and GAAP EPS to $2.20-$2.26.
Third quarter sales reached a record $765 million, up 21.5% from 2020.
Earnings per share increased 32% to $0.66 compared to $0.50 in the previous year.
Gross margin improved by 50 basis points to 33.7%, driven by volume leverage and pricing activities.
Fiscal year 2021 sales guidance was increased to a range of 9% to 11% growth.
Donaldson
Donaldson
Forward Guidance
Donaldson is increasing its fiscal 2021 guidance due to strong third quarter fiscal 2021 results, current backlog levels, and incoming order rates. GAAP EPS is expected to be between $2.20 and $2.26. The Company expects full-year sales to increase between 9% and 11% versus fiscal 2020.
Positive Outlook
- Strong third quarter fiscal 2021 results
- Current backlog levels
- Incoming order rates
- Full-year sales to increase between 9% and 11% versus fiscal 2020
- Off-Road, On-Road, and Aftermarket are expected to show strong growth.
Challenges Ahead
- Ongoing weakness in commercial aerospace
- Expected sales decline in Aerospace and Defense
- Higher raw material and freight costs
- Second half sales mix pressure, primarily in the Engine segment
- Increased incentive compensation expense