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Jul 31, 2022
Donaldson Q4 2022 Earnings Report
Reported record fourth quarter and full-year earnings with sales up 15.1% compared to fiscal 2021.
Key Takeaways
Donaldson reported a strong fourth quarter and full-year 2022, with sales reaching over $3 billion. The company achieved record profits despite a challenging operating environment and returned $281 million to shareholders. Looking forward, Donaldson anticipates continued high demand and pricing tailwinds for fiscal year 2023.
Fourth quarter sales increased by 15.1% compared to fiscal year 2021.
GAAP EPS for the fourth quarter was $0.81.
Adjusted EPS for the fourth quarter increased by 27.3% to $0.84.
The company forecasts sales to increase between 1% and 5% for fiscal year 2023, with an EPS forecast of $2.91 to $3.07.
Forward Guidance
Donaldson expects fiscal 2023 EPS between $2.91 and $3.07. Full-year 2023 net sales are projected to increase between 1% and 5% versus the prior year, including benefits from pricing of approximately 6% and a negative impact from currency translation of approximately 4%.
Positive Outlook
- Pricing benefits of approximately 6% are expected to boost sales.
- Mid-single digit growth in Aftermarket and Aerospace and Defense is anticipated.
- Elevated levels of equipment utilization across end-markets will contribute to growth in Aftermarket.
- Continued strength in the commercial aerospace industry will drive Aerospace and Defense sales.
- Industrial dust collection and Process Filtration sales are expected to continue the momentum seen in fiscal 2022.
Challenges Ahead
- Currency translation is expected to have a negative impact of approximately 4%.
- Modest declines are expected in On-Road and Off-Road sales.
- Strategic exiting of lower-margin programs will negatively impact On-Road and Off-Road sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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