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Apr 30, 2023
Donaldson Q3 2023 Earnings Report
Donaldson's Q3 2023 sales and earnings were reported, with sales increasing by 2.6% year over year and operating margin up by 120 basis points.
Key Takeaways
Donaldson reported a 2.6% increase in sales to $875.7 million and a 14.0% increase in EPS to $0.76 for the third quarter of 2023. The operating margin also improved to 14.2%.
Third quarter sales increased 2.6% year over year to $875.7 million.
Operating margin was 14.2%, up 120 basis points from the prior year.
EPS of $0.76 increased 14.0% versus 2022.
Donaldson maintained its fiscal 2023 sales and EPS outlook.
Forward Guidance
Fiscal 2023 full-year GAAP EPS is expected to be between $2.90 and $2.96. Sales are projected to increase between 3% and 5% over prior year.
Positive Outlook
- Sales are projected to increase between 3% and 5% over prior year.
- Mobile sales are forecast to increase between 2% and 4% year over year.
- Industrial sales are expected to increase between 11% and 13% versus 2022.
- GAAP operating margin is forecast to be between 13.9% and 14.3%.
- Free cash flow conversion is forecast between 105% and 115%.
Challenges Ahead
- Fiscal 2023 Life Sciences sales are expected to decline between 10% and 12% compared with prior year.
- There will be a negative impact from currency translation of roughly 4%.
- Fiscal 2023 interest expense is projected to be approximately $20 million.
- Capital expenditures are expected to be between $115 million and $130 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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