DCI - Donaldson Non-GAAP EPS of $0.76 beats by $0.02 revenue of $875.7M beats by $6.6M

2023-05-31 06:01:22 ET

• Donaldson press release ( NYSE: DCI ): Q3 Non-GAAP EPS of $0.76 beats by $0.02 .
• Revenue of $875.7M (+2.6% Y/Y) beats by $6.6M .

• Fiscal 2023 full-year GAAP EPS is expected to be between $2.90 and $2.96, inclusive of $0.10 of first half restructuring and other charges. Adjusted EPS is forecast between $3.00 and $3.06. Sales are projected to increase between 3% and 5% over prior year, driven by an approximate 8% increase in pricing and a negative impact from currency translation of roughly 4%.

  Fiscal 2023 Mobile sales are forecast to increase between 2% and 4% year over year as high levels of global equipment production are expected to drive mid-single digit and high-single digit growth in On-Road and Off-Road sales, respectively. Aftermarket sales are projected to increase low-single digits.

  Fiscal 2023 Industrial sales are expected to increase between 11% and 13% versus 2022. Robust end-market demand across the segment is forecast to drive a year-over-year sales increase in IFS and Aerospace and Defense of low-double digits and mid-teens, respectively.

  Fiscal 2023 Life Sciences sales are expected to decline between 10% and 12% compared with prior year due to continued Disk Drive market weakness and bioprocessing equipment delivery timing.

  Fiscal 2023 GAAP operating margin is forecast to be between 13.9% and 14.3% and adjusted operating margin is expected to be between 14.4% and 14.8%. Prior year GAAP and adjusted operating margin were 13.4% and 13.5%, respectively.

  Fiscal 2023 interest expense is projected to be approximately $20 million and other income is expected to be between $6 million and $10 million. Donaldson expects a fiscal 2023 effective income tax rate of approximately 24%.

  Fiscal 2023 capital expenditures are expected to be between $115 million and $130 million and free cash flow conversion is forecast between 105% and 115%. For the full year, Donaldson expects to repurchase approximately 2% of its shares outstanding.

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