Donaldson Company (DCI) reported mixed fourth-quarter results as the impact of the pandemic is still being felt. The company saw sequential month-to-month improvements, albeit still comping in negative territory. While the company managed to beat top and bottom-line expectations, the market didn’t react accordingly, sending shares lower by 8% during the trading day.
The story in 2021 is about optimization and improving efficiencies, leading to an expansion in profit margins. Donaldson is done with its growth CAPEX projects and is now focused on optimizing output. Management noted that, even in a flat revenue