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Jul 31, 2023
Donaldson Q4 2023 Earnings Report
Donaldson reported a decrease in fourth quarter sales by 1.2% compared to fiscal 2022, but full-year sales increased by 3.8%.
Key Takeaways
Donaldson reported GAAP net earnings of $91.9 million for the fourth quarter and $358.8 million for the full year. Fourth quarter sales decreased by 1.2%. The company provided fiscal year 2024 sales guidance of 3% to 7% growth and EPS outlook of $3.14 to $3.30.
Fourth quarter sales decreased 1.2% compared to fiscal 2022.
Full-year sales increased 3.8%.
Fourth quarter GAAP EPS was $0.75.
Fourth quarter adjusted EPS was $0.78.
Donaldson
Donaldson
Forward Guidance
Full-year EPS is expected to be between $3.14 and $3.30. Sales are projected to increase between 3% and 7% over prior year.
Positive Outlook
- Mobile sales are forecast to increase between 1% and 5% year over year.
- 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 grow between 3% and 7% versus 2023.
- IFS sales are forecast to increase mid-single digits with strength across most businesses, including dust collection and industrial services.
- Life Sciences sales are forecast to grow approximately 20% compared with prior year benefitting from an increase in sales in all businesses including Food & Beverage, Bioprocessing Equipment and Consumables, and Disk Drive.
Challenges Ahead
- Aerospace and Defense sales are projected to decrease low-single digits after cycling difficult comparisons in 2023.
- Investments in the Life Sciences segment will partially offset increasing gross margin.
- Effective income tax rate of between 24 and 26% is expected.
- Capital expenditures are forecast to be between $95 million and $115 million.
- Unspecified ongoing investments are expected.