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709700.0 | 2022-03-09 00:00:00 UTC | Tetra Tech (TTEK) Buys Axiom, Boosts Data Analytics Offerings | DCI | https://www.nasdaq.com/articles/tetra-tech-ttek-buys-axiom-boosts-data-analytics-offerings | nan | nan | Tetra Tech, Inc. TTEK yesterday announced that it completed the acquisition of Axiom Data Science. The financial terms of the transaction have been kept under wraps.
The company’s shares declined 3.7% yesterday to eventually close the trading session at $152.53.
Inside the Headlines
Based in Anchorage, AK, Axiom is a software development company engaged in developing scalable solutions to perform research in geological, ecological and ocean sciences. The company’s services are used across several private, academic, federal and non-governmental organizations.
The acquisition of Axiom will help Tetra Tech in boosting its capabilities in advanced analytics for projects related to oceans and ecosystems. This will enable the company to provide advanced climate data analytics solutions to its customers, supporting them in the decision-making process for projects related to climate change.
Axiom will be integrated into the company’s Government Services Group business segment. The segment offers consulting and engineering services globally for a wide range of U.S. government clients. Some of the notable services offered are environmental monitoring, water and waste management, sustainable infrastructure design, and various civil infrastructure master planning. Net sales of Government Services Group were $327.1 million in first-quarter fiscal 2022 (ended December 2021).
Other Notable Acquisitions
The latest transaction is in sync with Tetra Tech’s policy of acquiring businesses for expanding its market share, product offerings and customer base. The company completed the acquisition of Piteau Associates in March 2022, Enterprise Automation in October 2021, Hoare Lea in July 2021, Kaizen Company in May 2021 and IBRA-RMAC Automation Systems in April 2021. In fiscal 2021 and the first quarter of fiscal 2022, the company spent $84.9 million and $8.9 million for acquisitions, respectively.
Zacks Rank, Estimates and Price Performance
Tetra Tech, with an $8.2-billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is likely to benefit from high federal government spending, strong demand for its solutions and services, and a strong backlog level. Also, acquisitions made by the company over the past few quarters are likely to prove advantageous.
In the past 60 days, the Zacks Consensus Estimate for the company’s fiscal 2022 (ending September 2022) earnings has increased 3.1% to $4.28, while the same for fiscal 2023 (ending September 2023) has been raised 3.3% to $4.63.
Image Source: Zacks Investment Research
Its shares have gained 3.3% against a decline of 3.8% recorded by the industry in the past six months.
Other Key Picks
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
Dover Corporation DOV presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 12.34%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s earnings estimates have increased 4.1% for 2022 in the past 60 days. Its shares have lost 15.8% in the past six months.
Donaldson Company, Inc. DCI presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 4.16%, on average.
In the past 60 days, Donaldson’s earnings estimates have increased 0.7% for fiscal 2022 (ending July 2022). DCI’s shares have lost 15.9% in the past six months.
Heritage-Crystal Clean, Inc. HCCI presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 51.49%, on average.
In the past 60 days, Heritage-Crystal’s earnings estimates have increased 3.4% for 2022. HCCI’s shares have inched up 0.1% in the past six months.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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HeritageCrystal Clean, Inc. (HCCI): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 15.9% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 15.9% in the past six months. | Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 15.9% in the past six months. | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 15.9% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | 74937201-661d-443e-98f5-016f26d8115a |
709701.0 | 2022-03-08 00:00:00 UTC | Here's Why Donaldson (DCI) is Poised for a Turnaround After Losing 9.9% in 4 Weeks | DCI | https://www.nasdaq.com/articles/heres-why-donaldson-dci-is-poised-for-a-turnaround-after-losing-9.9-in-4-weeks | nan | nan | Donaldson (DCI) has been beaten down lately with too much selling pressure. While the stock has lost 9.9% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
Here is How to Spot Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why DCI Could Experience a Turnaround
The RSI reading of 26.79 for DCI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for DCI has increased 0.8%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, DCI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson (DCI) has been beaten down lately with too much selling pressure. Here's Why DCI Could Experience a Turnaround The RSI reading of 26.79 for DCI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Over the last 30 days, the consensus EPS estimate for DCI has increased 0.8%. | Moreover, DCI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson (DCI) has been beaten down lately with too much selling pressure. | Here's Why DCI Could Experience a Turnaround The RSI reading of 26.79 for DCI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Moreover, DCI currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Donaldson (DCI) has been beaten down lately with too much selling pressure. | Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson (DCI) has been beaten down lately with too much selling pressure. Here's Why DCI Could Experience a Turnaround The RSI reading of 26.79 for DCI is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. | 24feea80-2c2a-4b0c-9b87-6184a804181e |
709702.0 | 2022-03-08 00:00:00 UTC | Zebra's (ZBRA) Reflexis Solution Selected by North Shore Bank | DCI | https://www.nasdaq.com/articles/zebras-zbra-reflexis-solution-selected-by-north-shore-bank | nan | nan | Zebra Technologies Corporation ZBRA announced that it was chosen by North Shore Bank to offer its Reflexis Banking solution for streamlining the latter’s branch operations and enhancing workers’ productivity.
The company’s shares declined 3.2% yesterday to eventually close the trading session at $381.65.
Based in Brookfield, WI, North Shore Bank is a mutual savings bank with a significant presence across eastern Wisconsin and northern Illinois. The bank specializes in providing a wide range of financial services like personal banking, home equity lines of credit, mortgage services and others.
Inside the Headlines
Zebra’s Reflexis for Banking is an artificial intelligence (AI)-powered workforce management solution that allows users to gain detailed insight into branch execution and staffing procedures.
The company’s advanced solution will facilitate North Shore Bank in optimizing branch staffing, automating forecasting and scheduling-related tasks, and streamlining execution and communication across the branch network, thus, enhancing its operational performance. As noted, the streamline of operations and digitization of the inspection process at the North Shore Bank will enable its staff to provide improved services for its customers.
It is worth noting that the company’s Reflexis solution has a solid customer base worldwide, which includes several renowned brands and top banks.
Other Notable Buyouts
Zebra’s acquisition of antuit.ai (October 2021) has been strengthening the planning and demand forecasting module for its retail software portfolio. Also, the buyout of Fetch Robotics (August 2021) enhanced its capability to offer a comprehensive line of advanced robotics solutions to customers. The Reflexis Systems, Inc. acquisition (September 2020) boosted its software offerings. In the third and fourth quarters of 2021, acquired assets contributed 1.3% and 0.8% to the company’s net sales, respectively.
Zacks Rank, Price Performance and Estimate Revisions
Zebra, with $20.3 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is poised to benefit from the robust demand for its products and solutions, acquired assets, and strong cash flows in the quarters ahead.
In the past six months, the company’s share price has decreased 33.9% compared with the industry’s decline of 29.6%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Zebra’s earnings is pegged at $19.45 for 2022, up 0.9% from the 30-day-ago figure. The consensus estimate for 2023 earnings is pegged at $21.76, up 3.4% over the same time frame.
Other Stocks to Consider
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
Dover Corporation DOV presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 12.34%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s earnings estimates have been unchanged for 2022 in the past 30 days. Its shares have lost 13.6% in the past six months.
Donaldson Company, Inc. DCI presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 4.16%, on average.
In the past 30 days, Donaldson’s earnings estimates have increased 0.7% for fiscal 2022 (ending July 2022). DCI’s shares have lost 19.3% in the past six months.
Heritage-Crystal Clean, Inc. HCCI presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 51.49%, on average.
In the past 30 days, Heritage-Crystal’s earnings estimates have increased 3.4% for 2022. HCCI’s shares have lost 2.7% in the past six months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Dover Corporation (DOV): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report
HeritageCrystal Clean, Inc. (HCCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 19.3% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 19.3% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 19.3% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 19.3% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | 4b38d203-0e66-4970-98c7-ffaf8d14b1db |
709703.0 | 2022-03-07 00:00:00 UTC | Tetra Tech (TTEK) Acquires Piteau, Enhances Product Offerings | DCI | https://www.nasdaq.com/articles/tetra-tech-ttek-acquires-piteau-enhances-product-offerings | nan | nan | Tetra Tech, Inc. TTEK, on Mar 3, announced that it completed the acquisition of Piteau Associates. The financial terms of the transaction were kept under wraps.
The company’s shares gained 0.9% to eventually close the trading session at $159.97 on Friday.
Inside the Headlines
Headquartered in Vancouver, British Columbia, Piteau is engaged in offering a complete range of hydrogeological, geotechnical and environmental consulting services to several sectors, including mining, industrial, resources and municipal. The company’s services are used worldwide to solve difficult geotechnical and water-related challenges in the natural resource industry.
The acquisition of Piteau will facilitate Tetra Tech in strengthening its position in the sustainable water management industry, apart from enhancing its customer reach. The addition of Piteau’s strong expertise in sustainable natural resource analytics will help Tetra Tech boost its capabilities in advanced analytics for providing water management and geotechnical solutions to its commercial resource management customers.
Piteau will be part of the company’s Commercial/International Services Group business segment. The segment offers various services like environmental remediation, infrastructure and related environmental and geotechnical services, as well as engineering and project management services. Net sales of Commercial/International Services Group were $352.2 million in first-quarter fiscal 2022 (ended December 2021).
Other Notable Buyouts
Tetra Tech acquired Coanda Research & Development in February 2021, IBRA-RMAC Automation Systems in April 2021, Kaizen Company in May 2021, Hoare Lea in July 2021, and Enterprise Automation in October 2021. In fiscal 2021 and the first quarter of fiscal 2022, the company spent $84.9 million and $8.9 million for acquisitions, respectively.
Zacks Rank, Estimates and Price Performance
Tetra Tech, with an $8.6-billion market capitalization, currently carries a Zacks Rank #2 (Buy). High federal government spending, along with strong demand for the company’s services, will be beneficial. Also, acquisitions made by the company over the past few quarters are likely to prove advantageous.
In the past 30 days, the Zacks Consensus Estimate for the company’s fiscal 2022 (ending September 2022) earnings has increased 3.1% to $4.28, while the same for fiscal 2023 (ending September 2023) has been raised 3.3% to $4.63.
The company’s shares have gained 8% against a 2.7% decline recorded by the industry in the past six months.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
Dover Corp. DOV presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 12.34%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s earnings estimates have been unchanged for 2022 in the past 30 days. Its shares have lost 13.6% in the past six months.
Donaldson Company, Inc. DCI presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 4.16%, on average.
In the past 30 days, Donaldson’s earnings estimates have increased 0.7% for fiscal 2022 (ending July 2022). DCI’s shares have lost 16.5% in the past six months.
Heritage-Crystal Clean, Inc. HCCI presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 51.49%, on average.
In the past 30 days, Heritage-Crystal’s earnings estimates have increased 3.4% for 2022. HCCI’s shares have inched up 0.3% in the past six months.
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Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
HeritageCrystal Clean, Inc. (HCCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 16.5% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 16.5% in the past six months. | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 16.5% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Donaldson Company, Inc. DCI presently has a Zacks Rank #2. DCI’s shares have lost 16.5% in the past six months. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | c6097b17-c0d0-4354-990e-15b56b1752dc |
709704.0 | 2022-03-03 00:00:00 UTC | Donaldson (DCI) Q2 Earnings Lag Estimates, Revenues Beat | DCI | https://www.nasdaq.com/articles/donaldson-dci-q2-earnings-lag-estimates-revenues-beat | nan | nan | Donaldson Company, Inc.’s DCI second-quarter fiscal 2022 (ended Jan 31, 2021) earnings missed the Zacks Consensus Estimate by 8.1%, while sales surpassed the same by 3.6%.
The company’s earnings in the reported quarter were 57 cents per share, lagging the Zacks Consensus Estimate of 62 cents. The bottom line improved 9.6% from the year-ago quarter’s 52 cents. Sales growth in the reported quarter more than offset the headwinds stemming from supply-chain constraints and higher cost of raw material.
Revenue Results
In the fiscal second quarter, Donaldson’s net sales were $802.5 million, reflecting year-over-year growth of 18.2%. The top line surpassed the Zacks Consensus Estimate of $774 million.
Region-wise, the company’s net sales in the United States/Canada increased 22.6% year over year. The top line expanded 20.2% in Europe, the Middle East and Africa, 5.5% in the Asia Pacific and 26.9% in Latin America.
The company reports revenues under the following segments — Engine Products and Industrial Products. A brief snapshot of the segmental sales is provided below:
Engine Products’ (accounting for 69% of net sales in second-quarter fiscal 2022) sales were $554.1 million, reflecting year-over-year growth of 19.8%.
The results were positively impacted by growth of 22.6% in Off-Road, 29.6% in Aerospace and Defense and 20.6% in Aftermarket sales. However, sales declined 0.7% in On-Road.
Revenues generated from Industrial Products (accounting for 31% of net sales in second-quarter fiscal 2022) were $248.4 million, increasing 14.6% from the year-ago quarter.
Results benefited from sales growth of 14.1% in Industrial Filtration Solutions, 9.8% in Special Applications and 26.3% in Gas Turbine Systems.
Donaldson Company, Inc. Price, Consensus and EPS Surprise
Donaldson Company, Inc. price-consensus-eps-surprise-chart | Donaldson Company, Inc. Quote
Margin Profile
In the quarter, Donaldson’s cost of sales increased 21.8% year over year to $552.7 million. Gross profit jumped 10.9% to $249.8 million, while gross margin declined 210 basis points (bps) to 31.1%. The margin results were negatively impacted by higher raw material costs, labor and freight, partially offset by volume growth and favorable pricing.
Operating expenses increased 3.2% year over year to $154.1 million. Operating profit in the quarter under review soared 25.8% to $95.7 million. Operating margin was 11.9%, up 70 bps year over year.
Effective tax rate in the quarter was 24.1% compared with 23.9% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting second-quarter fiscal 2022, Donaldson’s cash and cash equivalents were $170.4 million, down 15.1% from $200.8 million recorded in the last reported quarter. Long-term debt was up 1.1% sequentially to $553.9 million.
In the first six months of fiscal 2022, the company repaid the long-term debt of $75 million.
In the reported quarter, it generated net cash of $36.9 million from operating activities, reflecting a decrease of 49.6% from the year-ago figure. Capital expenditure (net) totaled $15.2 million compared with $11.6 million in the year-ago quarter. Free cash flow decreased 64.9% to $21.7 million.
In the first six months of fiscal 2022, the company used $115.6 million for repurchasing shares and $54.6 million for paying out dividends.
Outlook
For fiscal 2022 (ending July 2022), Donaldson anticipates benefiting from solid demand for its products. However, supply-chain challenges weigh on the company.
It expects earnings per share of $2.66-$2.76 compared with $2.57-$2.73 predicted earlier. Sales are anticipated to increase 11-15% year over year compared with 8-12% guided previously. Movements in foreign currencies are expected to have a negative impact of 2% on sales.
On a segmental basis, Engine Products sales are anticipated to increase 12-16% year over year. The segment’s performance is likely to benefit from growth in Off-Road and Aftermarket sales. Also, growth in Aerospace and Defense sales is anticipated. However, supply chain issues might hurt On-Road sales.
Sales growth for Industrial Products is anticipated to be 9-13% year over year. The segment is likely to gain from solid momentum in Industrial Filtration Solutions, Gas Turbine Systems and Special Applications.
Operating margin is expected to be 14-14.4% for fiscal 2022. Interest expenses are predicted to be $14 million. Other income is likely to be $7-$11 million. Effective tax rate is anticipated to be 24-26%.
Capital expenditure for the fiscal year is expected to be $90-$110 million. Free cash flow conversion is anticipated to be 70-80%. Share buybacks will account for 2% of outstanding shares.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the Zacks Industrial Products sector are discussed below.
Franklin Electric Co., Inc. FELE presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 17.44%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have increased 10.9% for 2022. FELE’s shares have lost 8.2% in the past three months.
Standex International Corporation SXI presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022). SXI’s shares have gained 1.5% in the past three months.
AZZ Inc. AZZ presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 16.90%, on average.
AZZ’s earnings estimates have been stable for fiscal 2022 (ended February 2022, results awaited) in the past 30 days. AZZ’s shares have declined 7.4% in the past three months.
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AZZ Inc. (AZZ): Free Stock Analysis Report
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Franklin Electric Co., Inc. (FELE): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc.’s DCI second-quarter fiscal 2022 (ended Jan 31, 2021) earnings missed the Zacks Consensus Estimate by 8.1%, while sales surpassed the same by 3.6%. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Revenues generated from Industrial Products (accounting for 31% of net sales in second-quarter fiscal 2022) were $248.4 million, increasing 14.6% from the year-ago quarter. | Donaldson Company, Inc.’s DCI second-quarter fiscal 2022 (ended Jan 31, 2021) earnings missed the Zacks Consensus Estimate by 8.1%, while sales surpassed the same by 3.6%. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Engine Products’ (accounting for 69% of net sales in second-quarter fiscal 2022) sales were $554.1 million, reflecting year-over-year growth of 19.8%. | Donaldson Company, Inc.’s DCI second-quarter fiscal 2022 (ended Jan 31, 2021) earnings missed the Zacks Consensus Estimate by 8.1%, while sales surpassed the same by 3.6%. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Revenues generated from Industrial Products (accounting for 31% of net sales in second-quarter fiscal 2022) were $248.4 million, increasing 14.6% from the year-ago quarter. | Donaldson Company, Inc.’s DCI second-quarter fiscal 2022 (ended Jan 31, 2021) earnings missed the Zacks Consensus Estimate by 8.1%, while sales surpassed the same by 3.6%. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Revenue Results In the fiscal second quarter, Donaldson’s net sales were $802.5 million, reflecting year-over-year growth of 18.2%. | e0571735-3384-4f44-9dee-f939b4486ce5 |
709705.0 | 2022-03-02 00:00:00 UTC | Donaldson (DCI) Q2 Earnings Miss Estimates | DCI | https://www.nasdaq.com/articles/donaldson-dci-q2-earnings-miss-estimates | nan | nan | Donaldson (DCI) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -8.06%. A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.55 per share when it actually produced earnings of $0.61, delivering a surprise of 10.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $802.5 million for the quarter ended January 2022, surpassing the Zacks Consensus Estimate by 3.64%. This compares to year-ago revenues of $679.1 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on theearnings call
Donaldson shares have lost about 10.9% since the beginning of the year versus the S&P 500's decline of -9.7%.
What's Next for Donaldson?
While Donaldson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Donaldson: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.70 on $802.25 million in revenues for the coming quarter and $2.68 on $3.14 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Pollution Control is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Ituran (ITRN), another stock in the broader Zacks Industrial Products sector, has yet to report results for the quarter ended December 2021. The results are expected to be released on March 7.
This maker of tracking and communications technology for vehicles is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +36.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ituran's revenues are expected to be $70.03 million, up 10.1% from the year-ago quarter.
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Donaldson Company, Inc. (DCI): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson (DCI) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.62 per share. Donaldson Company, Inc. (DCI): Free Stock Analysis Report The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on theearnings call Donaldson shares have lost about 10.9% since the beginning of the year versus the S&P 500's decline of -9.7%. | Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson (DCI) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.62 per share. Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $802.5 million for the quarter ended January 2022, surpassing the Zacks Consensus Estimate by 3.64%. | Donaldson (DCI) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.62 per share. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $802.5 million for the quarter ended January 2022, surpassing the Zacks Consensus Estimate by 3.64%. | Donaldson (DCI) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.62 per share. Donaldson Company, Inc. (DCI): Free Stock Analysis Report While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. | 505ff920-0c7c-4584-8702-370e6a5ac864 |
709706.0 | 2022-03-01 00:00:00 UTC | Plug Power (PLUG) Reports Q4 Loss, Tops Revenue Estimates | DCI | https://www.nasdaq.com/articles/plug-power-plug-reports-q4-loss-tops-revenue-estimates | nan | nan | Plug Power (PLUG) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -166.67%. A quarter ago, it was expected that this alternative energy company would post a loss of $0.09 per share when it actually produced a loss of $0.19, delivering a surprise of -111.11%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Plug Power, which belongs to the Zacks Manufacturing - Electronics industry, posted revenues of $161.91 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 2.21%. This compares to year-ago revenues of $139.66 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Plug Power shares have lost about 10.4% since the beginning of the year versus the S&P 500's decline of -8.2%.
What's Next for Plug Power?
While Plug Power has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Plug Power: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.09 on $167.41 million in revenues for the coming quarter and -$0.25 on $927.83 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Electronics is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Industrial Products sector, Donaldson (DCI), is yet to report results for the quarter ended January 2022. The results are expected to be released on March 2.
This maker of filtration systems is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +19.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Donaldson's revenues are expected to be $774.3 million, up 14% from the year-ago quarter.
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Plug Power, Inc. (PLUG): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One other stock from the broader Zacks Industrial Products sector, Donaldson (DCI), is yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. | One other stock from the broader Zacks Industrial Products sector, Donaldson (DCI), is yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Plug Power, which belongs to the Zacks Manufacturing - Electronics industry, posted revenues of $161.91 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 2.21%. | One other stock from the broader Zacks Industrial Products sector, Donaldson (DCI), is yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Plug Power (PLUG) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.12. | One other stock from the broader Zacks Industrial Products sector, Donaldson (DCI), is yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report The company has topped consensus revenue estimates four times over the last four quarters. | f97c0b09-70d6-4a30-a637-5f587b7697e9 |
709707.0 | 2022-03-01 00:00:00 UTC | Pre-Market Earnings Report for March 2, 2022 : DLTR, DCI, PDCO, DY, ANF, DIN, GSL, INSW, OSW, AMRX, ICPT, JNCE | DCI | https://www.nasdaq.com/articles/pre-market-earnings-report-for-march-2-2022-%3A-dltr-dci-pdco-dy-anf-din-gsl-insw-osw-amrx | nan | nan | The following companies are expected to report earnings prior to market open on 03/02/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Dollar Tree, Inc. (DLTR)is reporting for the quarter ending January 31, 2022. The discount retail company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.79. This value represents a 15.96% decrease compared to the same quarter last year. In the past year DLTR has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 1.05%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DLTR is 25.46 vs. an industry ratio of 22.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Donaldson Company, Inc. (DCI)is reporting for the quarter ending January 31, 2022. The pollution control company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.62. This value represents a 19.23% increase compared to the same quarter last year. In the past year DCI has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DCI is 20.25 vs. an industry ratio of 30.60.
Patterson Companies, Inc. (PDCO)is reporting for the quarter ending January 31, 2022. The medical/dental supplies company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.50. This value represents a 13.79% decrease compared to the same quarter last year. PDCO missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -28.3%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PDCO is 14.38 vs. an industry ratio of 23.70.
Dycom Industries, Inc. (DY)is reporting for the quarter ending January 31, 2022. The building company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.07. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DY is 60.88 vs. an industry ratio of 10.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Abercrombie & Fitch Company (ANF)is reporting for the quarter ending January 31, 2022. The retail (shoe) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.28. This value represents a 14.67% decrease compared to the same quarter last year. In the past year ANF has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 26.47%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ANF is 8.48 vs. an industry ratio of 7.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Dine Brands Global, Inc. (DIN)is reporting for the quarter ending December 31, 2021. The restaurant company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.28. This value represents a 228.21% increase compared to the same quarter last year. DIN missed the consensus earnings per share in the 4th calendar quarter of 2020 by -33.9%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DIN is 12.88 vs. an industry ratio of -3.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Global Ship Lease, Inc. (GSL)is reporting for the quarter ending December 31, 2021. The shipping company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.26. This value represents a 231.58% increase compared to the same quarter last year. In the past year GSL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 102.33%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for GSL is 7.13 vs. an industry ratio of 28.00.
International Seaways, Inc. (INSW)is reporting for the quarter ending December 31, 2021. The shipping company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.44. This value represents a 15.38% increase compared to the same quarter last year. INSW missed the consensus earnings per share in the 4th calendar quarter of 2020 by -126.09%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for INSW is -8.59 vs. an industry ratio of 28.00.
OneSpaWorld Holdings Limited (OSW)is reporting for the quarter ending December 31, 2021. The leisure (recreational) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.07. This value represents a 75.00% increase compared to the same quarter last year. OSW missed the consensus earnings per share in the 4th calendar quarter of 2020 by -12%. The "days to cover" for this stock exceeds 15 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for OSW is -17.53 vs. an industry ratio of 115.60.
Amneal Pharmaceuticals, Inc. (AMRX)is reporting for the quarter ending December 31, 2021. The drug company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.17. This value represents a 54.55% increase compared to the same quarter last year. AMRX missed the consensus earnings per share in the 4th calendar quarter of 2020 by -8.33%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AMRX is 5.66 vs. an industry ratio of -0.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Intercept Pharmaceuticals, Inc. (ICPT)is reporting for the quarter ending December 31, 2021. The biomedical (gene) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-1.25. This value represents a 20.89% increase compared to the same quarter last year. ICPT missed the consensus earnings per share in the 4th calendar quarter of 2020 by -1.94%. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ICPT is -4.31 vs. an industry ratio of -2.80.
Jounce Therapeutics, Inc. (JNCE)is reporting for the quarter ending December 31, 2021. The drug company's consensus earnings per share forecast from the 6 analysts that follow the stock is $-0.23. This value represents a 126.74% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for JNCE is -4.97 vs. an industry ratio of -0.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. (DCI)is reporting for the quarter ending January 31, 2022. In the past year DCI has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DCI is 20.25 vs. an industry ratio of 30.60. | Donaldson Company, Inc. (DCI)is reporting for the quarter ending January 31, 2022. In the past year DCI has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DCI is 20.25 vs. an industry ratio of 30.60. | Donaldson Company, Inc. (DCI)is reporting for the quarter ending January 31, 2022. In the past year DCI has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DCI is 20.25 vs. an industry ratio of 30.60. | Donaldson Company, Inc. (DCI)is reporting for the quarter ending January 31, 2022. In the past year DCI has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DCI is 20.25 vs. an industry ratio of 30.60. | 9c533dab-2a3c-41b3-9701-82b17dda4747 |
709708.0 | 2022-02-24 00:00:00 UTC | Oversold Conditions For Donaldson | DCI | https://www.nasdaq.com/articles/oversold-conditions-for-donaldson | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $51.02 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 28.9. A bullish investor could look at DCI's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DCI shares:
Looking at the chart above, DCI's low point in its 52 week range is $51.02 per share, with $69.35 as the 52 week high point — that compares with a last trade of $51.68.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $51.02 per share. A bullish investor could look at DCI's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DCI shares: Looking at the chart above, DCI's low point in its 52 week range is $51.02 per share, with $69.35 as the 52 week high point — that compares with a last trade of $51.68. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $51.02 per share. A bullish investor could look at DCI's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DCI shares: Looking at the chart above, DCI's low point in its 52 week range is $51.02 per share, with $69.35 as the 52 week high point — that compares with a last trade of $51.68. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $51.02 per share. A bullish investor could look at DCI's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DCI shares: Looking at the chart above, DCI's low point in its 52 week range is $51.02 per share, with $69.35 as the 52 week high point — that compares with a last trade of $51.68. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $51.02 per share. A bullish investor could look at DCI's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DCI shares: Looking at the chart above, DCI's low point in its 52 week range is $51.02 per share, with $69.35 as the 52 week high point — that compares with a last trade of $51.68. | 3f25d986-5ae0-4c7f-bfb5-4764ca45318a |
709709.0 | 2022-02-23 00:00:00 UTC | Donaldson (DCI) Reports Next Week: Wall Street Expects Earnings Growth | DCI | https://www.nasdaq.com/articles/donaldson-dci-reports-next-week%3A-wall-street-expects-earnings-growth | nan | nan | The market expects Donaldson (DCI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on March 2, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of filtration systems is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +19.2%.
Revenues are expected to be $768.2 million, up 13.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Donaldson?
For Donaldson, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Donaldson will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Donaldson would post earnings of $0.55 per share when it actually produced earnings of $0.61, delivering a surprise of +10.91%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Donaldson doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Donaldson Company, Inc. (DCI): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The market expects Donaldson (DCI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. | The market expects Donaldson (DCI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | The market expects Donaldson (DCI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | The market expects Donaldson (DCI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. | d609f300-ee4c-4a94-a568-177174936ac0 |
709710.0 | 2022-02-18 00:00:00 UTC | Donaldson Co. Inc. Shares Near 52-Week Low - Market Mover | DCI | https://www.nasdaq.com/articles/donaldson-co.-inc.-shares-near-52-week-low-market-mover | nan | nan | Donaldson Co. Inc. (DCI) shares closed today at 1.6% above its 52 week low of $52.73, giving the company a market cap of $6B. The stock is currently down 9.7% year-to-date, down 10.3% over the past 12 months, and up 36.5% over the past five years. This week, the Dow Jones Industrial Average fell 2.5%, and the S&P 500 fell 2.7%.
Trading Activity
Trading volume this week was 41.0% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 1.0.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 51.2%
The company's stock price performance over the past 12 months beats the peer average by -12.6%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 223.7% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co. Inc. (DCI) shares closed today at 1.6% above its 52 week low of $52.73, giving the company a market cap of $6B. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.0. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 51.2% The company's stock price performance over the past 12 months beats the peer average by -12.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 223.7% higher than the average peer. | Donaldson Co. Inc. (DCI) shares closed today at 1.6% above its 52 week low of $52.73, giving the company a market cap of $6B. This week, the Dow Jones Industrial Average fell 2.5%, and the S&P 500 fell 2.7%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 51.2% The company's stock price performance over the past 12 months beats the peer average by -12.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 223.7% higher than the average peer. | Donaldson Co. Inc. (DCI) shares closed today at 1.6% above its 52 week low of $52.73, giving the company a market cap of $6B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 51.2% The company's stock price performance over the past 12 months beats the peer average by -12.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 223.7% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Donaldson Co. Inc. (DCI) shares closed today at 1.6% above its 52 week low of $52.73, giving the company a market cap of $6B. This week, the Dow Jones Industrial Average fell 2.5%, and the S&P 500 fell 2.7%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. | 6c42b777-ed4b-40b5-afd5-0c8ed50a6a1d |
709711.0 | 2022-02-14 00:00:00 UTC | Analysts Expect AIVL To Hit $111 | DCI | https://www.nasdaq.com/articles/analysts-expect-aivl-to-hit-%24111 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. AI Enhanced Value Fund ETF (Symbol: AIVL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $110.87 per unit.
With AIVL trading at a recent price near $98.44 per unit, that means that analysts see 12.63% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of AIVL's underlying holdings with notable upside to their analyst target prices are Valvoline Inc (Symbol: VVV), Globus Medical Inc (Symbol: GMED), and Donaldson Co. Inc. (Symbol: DCI). Although VVV has traded at a recent price of $32.11/share, the average analyst target is 30.80% higher at $42.00/share. Similarly, GMED has 26.29% upside from the recent share price of $69.22 if the average analyst target price of $87.42/share is reached, and analysts on average are expecting DCI to reach a target price of $67.25/share, which is 25.98% above the recent price of $53.38. Below is a twelve month price history chart comparing the stock performance of VVV, GMED, and DCI:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
WisdomTree U.S. AI Enhanced Value Fund ETF AIVL $98.44 $110.87 12.63%
Valvoline Inc VVV $32.11 $42.00 30.80%
Globus Medical Inc GMED $69.22 $87.42 26.29%
Donaldson Co. Inc. DCI $53.38 $67.25 25.98%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WisdomTree U.S. AI Enhanced Value Fund ETF AIVL $98.44 $110.87 12.63% Valvoline Inc VVV $32.11 $42.00 30.80% Globus Medical Inc GMED $69.22 $87.42 26.29% Donaldson Co. Inc. DCI $53.38 $67.25 25.98% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of AIVL's underlying holdings with notable upside to their analyst target prices are Valvoline Inc (Symbol: VVV), Globus Medical Inc (Symbol: GMED), and Donaldson Co. Inc. (Symbol: DCI). Similarly, GMED has 26.29% upside from the recent share price of $69.22 if the average analyst target price of $87.42/share is reached, and analysts on average are expecting DCI to reach a target price of $67.25/share, which is 25.98% above the recent price of $53.38. | Three of AIVL's underlying holdings with notable upside to their analyst target prices are Valvoline Inc (Symbol: VVV), Globus Medical Inc (Symbol: GMED), and Donaldson Co. Inc. (Symbol: DCI). Similarly, GMED has 26.29% upside from the recent share price of $69.22 if the average analyst target price of $87.42/share is reached, and analysts on average are expecting DCI to reach a target price of $67.25/share, which is 25.98% above the recent price of $53.38. WisdomTree U.S. AI Enhanced Value Fund ETF AIVL $98.44 $110.87 12.63% Valvoline Inc VVV $32.11 $42.00 30.80% Globus Medical Inc GMED $69.22 $87.42 26.29% Donaldson Co. Inc. DCI $53.38 $67.25 25.98% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, GMED has 26.29% upside from the recent share price of $69.22 if the average analyst target price of $87.42/share is reached, and analysts on average are expecting DCI to reach a target price of $67.25/share, which is 25.98% above the recent price of $53.38. Three of AIVL's underlying holdings with notable upside to their analyst target prices are Valvoline Inc (Symbol: VVV), Globus Medical Inc (Symbol: GMED), and Donaldson Co. Inc. (Symbol: DCI). Below is a twelve month price history chart comparing the stock performance of VVV, GMED, and DCI: Below is a summary table of the current analyst target prices discussed above: | WisdomTree U.S. AI Enhanced Value Fund ETF AIVL $98.44 $110.87 12.63% Valvoline Inc VVV $32.11 $42.00 30.80% Globus Medical Inc GMED $69.22 $87.42 26.29% Donaldson Co. Inc. DCI $53.38 $67.25 25.98% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of AIVL's underlying holdings with notable upside to their analyst target prices are Valvoline Inc (Symbol: VVV), Globus Medical Inc (Symbol: GMED), and Donaldson Co. Inc. (Symbol: DCI). Similarly, GMED has 26.29% upside from the recent share price of $69.22 if the average analyst target price of $87.42/share is reached, and analysts on average are expecting DCI to reach a target price of $67.25/share, which is 25.98% above the recent price of $53.38. | cc88fe0a-2144-42da-b2c5-02e4f86b9845 |
709712.0 | 2022-02-03 00:00:00 UTC | Tetra Tech (TTEK) Tops Q1 Earnings Estimates, Hikes FY22 View | DCI | https://www.nasdaq.com/articles/tetra-tech-ttek-tops-q1-earnings-estimates-hikes-fy22-view | nan | nan | Tetra Tech, Inc. TTEK reported better-than-expected results for first-quarter fiscal 2022 (ended December 2021). Its earnings beat the Zacks Consensus Estimate by 15.53%, being the 18th consecutive quarter of better-than-expected results. Its sales also surpassed estimates by 1.17%.
The company’s adjusted earnings per share in the reported quarter were $1.19, surpassing the Zacks Consensus Estimate of $1.03. Quarterly earnings expanded 24% from the year-ago reported figure of 96 cents.
The bottom line also surpassed management’s projection of 98 cents to $1.03 per share.
Revenues & Segmental Performance
In the fiscal first quarter, Tetra Tech generated adjusted revenues of $858.5 million, reflecting a year-over-year increase of 12.2%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $679.3 million, up 12.3% year over year. The quarterly top line came above the company’s guidance of $630-$680 million.
Tetra Tech’s revenues exceeded the Zacks Consensus Estimate of $671.5 million.
Backlog at the end of the quarter was $3,448.3 million, down 0.9% from the previous quarter.
Revenues from the U.S. Federal customers (accounting for 27% of the quarter’s revenues) were down 1% year over year. The U.S. Commercial sales (21% of the quarter’s revenues) increased 7% year over year on higher environmental programs.
The U.S. State and Local sales (18% of the quarter’s revenues) increased 29% on strength across municipal infrastructure and disaster response. International sales (34% of the quarter’s revenues) increased 20% year over year, backed by infrastructure developments.
The company reports revenues under the segments discussed below:
Net sales of Government Services Group were $327.1 million, up 7.4% year over year. Revenues from Commercial/International Services Group totaled $352.2 million, underlining a year-over-year increase of 17.2%.
Margin Profile
In the fiscal first quarter, Tetra Tech’s subcontractor costs totaled $179.2 million, reflecting a rise of 12.1% from the year-ago quarter. Other costs of revenues were $543.9 million, up 11.3%. Selling, general and administrative expenses were $52.6 million, up 5.2% from the year-ago quarter.
Operating income (adjusted) in the reported quarter increased 24.9% year over year to $82.8 million, while the adjusted margin expanded 120 basis points to 12.2%.
Balance Sheet and Cash Flow
Exiting the fiscal first quarter, Tetra Tech had cash and cash equivalents of $205.5 million, up 23.3% from $166.6 million recorded at the end of the prior quarter. Long-term debt increased 23.4% sequentially to $246.9 million.
In the quarter, the company generated net cash of $82.4 million from operating activities compared with $33.2 million in the year-ago quarter. Capital expenditure was $1.5 million, down 15.4% year over year. In the quarter, the company’s proceeds from borrowings amounted to $50.8 million, while repayments totaled $4 million.
Shareholder-Friendly Policies
Tetra Tech bought back shares worth $50 millionand distributed dividends totaling $10.8 million in the first quarter of fiscal 2022. These compare favorably with share buybacks of $15 million and dividends of $9.2 million distributed in first-quarter fiscal 2021.
Exiting the fiscal first quarter, the company had $498 million worth of authorization left under its approved buyback programs.
On Jan 31, 2022, the company’s board of directors approved the payment of a quarterly cash dividend of 20 cents per share. The company will pay out the dividend on Feb 25 to shareholders of record as of Feb 11, 2022.
Outlook
For fiscal 2022 (ending September 2022), Tetra Tech anticipates net revenues of $2.65-$2.80 billion, higher than $2.60-$2.80 billion stated previously. Adjusted earnings are predicted to be $4.15-$4.30, up from the previously mentioned $4.00-$4.20.
For the second quarter of fiscal 2022 (ending March 2022), the company estimates net revenues of $620-$670 million and adjusted earnings per share of 86-91 cents.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
Tetra Tech, Inc. price-consensus-eps-surprise-chart | Tetra Tech, Inc. Quote
Zacks Rank &Other Earnings Releases
With a market capitalization of $7.6 billion, Tetra Tech currently carries a Zacks Rank #3 (Hold).
Three other companies from the industry to soon report results are discussed below:
Donaldson Company, Inc. DCI will likely release second-quarter fiscal 2022 (ended January 2022) results on Feb 24. It presently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company reported better-than-expected results in three of the last four quarters and in-line results once. The earnings surprise was 6.67%, on average. In the past 60 days, the Zacks Consensus Estimate for Donaldson’s fiscal second-quarter earnings has been revised up 1.6%.
CECO Environmental Corp. CECE is likely to release fourth-quarter results on Mar 2. It presently carries a Zacks Rank #3.
In the last four quarters, the company recorded better-than-expected results once, in-line results once and weaker-than-expected results twice. It pulled off a trailing four-quarter earnings surprise of -14.06%, on average. The Zacks Consensus Estimate for CECE’s fourth-quarter earnings has been unchanged at 10 cents in the past 60 days.
Casella Waste Systems, Inc. CWST presently carries a Zacks Rank #3. The company is slated to report fourth-quarter 2021 results on Feb 17, before market open.
The company reported better-than-expected results in the last four quarters, the earnings surprise being 42.11%, on average. The Zacks Consensus Estimate for CWST’s fourth-quarter earnings has been unchanged at 18 cents in the past 60 days.
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Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Casella Waste Systems, Inc. (CWST): Free Stock Analysis Report
CECO Environmental Corp. (CECE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. DCI will likely release second-quarter fiscal 2022 (ended January 2022) results on Feb 24. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Shareholder-Friendly Policies Tetra Tech bought back shares worth $50 millionand distributed dividends totaling $10.8 million in the first quarter of fiscal 2022. | Donaldson Company, Inc. DCI will likely release second-quarter fiscal 2022 (ended January 2022) results on Feb 24. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. TTEK reported better-than-expected results for first-quarter fiscal 2022 (ended December 2021). | Donaldson Company, Inc. DCI will likely release second-quarter fiscal 2022 (ended January 2022) results on Feb 24. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Balance Sheet and Cash Flow Exiting the fiscal first quarter, Tetra Tech had cash and cash equivalents of $205.5 million, up 23.3% from $166.6 million recorded at the end of the prior quarter. | Donaldson Company, Inc. DCI will likely release second-quarter fiscal 2022 (ended January 2022) results on Feb 24. Donaldson Company, Inc. (DCI): Free Stock Analysis Report The company’s adjusted earnings per share in the reported quarter were $1.19, surpassing the Zacks Consensus Estimate of $1.03. | cb15f7b5-69f7-4ae0-806e-c686a7285a23 |
709713.0 | 2022-02-02 00:00:00 UTC | Johnson Controls (JCI) Q1 Earnings & Sales Beat, Dividend Up | DCI | https://www.nasdaq.com/articles/johnson-controls-jci-q1-earnings-sales-beat-dividend-up | nan | nan | Johnson Controls International plc JCI reported adjusted first-quarter fiscal 2022 earnings per share of 54 cents, up nearly 26% year over year. The bottom line marginally topped the Zacks Consensus Estimate of 53 cents. This outperformance stemmed from higher-than-expected revenues from Building Solutions North America, Building Solutions Europe, Middle East, Africa/Latin America and Building Solutions Asia Pacific and segments.
The company reported adjusted revenues of $5,862 million, up 9.7% year over year. The top line also outpaced the Zacks Consensus Estimate of $5,767.3 million.
Segmental Results
Building Solutions North America: This segment’s adjusted revenues came in at $2,152 million, up 6% from the year-ago quarter’s $2,034 million on growth in HVAC & Controls and Service. The metric marginally topped the Zacks Consensus Estimate of $2,145 million. The segment’s EBITA decreased to $250 million from $255 million reported in first-quarter fiscal 2021 and lagged the consensus mark of $275 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues from this segment totaled $959 million, up 1.2% year over year with modest growth in both project installations and service activity, led by strength in Fire & Security, and beat the consensus mark of $914 million. The segment’s EBITA came in at $104 million, up 6.1% year over year. The metric also topped the consensus mark of $92 million.
Building Solutions Asia Pacific: Revenues grew to $675 million, up 11.8% year over year on higher project installations and services, driven by strong growth in Applied HVAC & Controls. The metric topped the consensus mark of $634 million. The segment’s EBITA came in at $68 million, up nearly 12%, driven by volume leverage and the benefit of SG&A/COGS actions which were more than offset by negative price/cost and the unfavorable impact of install/service and geographic mix. The metric, however, lagged the consensus mark of $79 million.
Global Products: Revenues in this segment climbed to $2,076 million, increasing 18.3% year over year, mainly on higher sales in commercial and residential HVAC and Fire & Security. The figure lagged the consensus mark of $2,102 million. The segment’s EBITA came in at $301 million, up around 42% year over year, aided by operational efficiency, favorable product mix and higher sales. The metric beat the Zacks Consensus Estimate of $270 million.
Financial Position
Johnson Controls had cash and cash equivalents of $1,207 million as of Dec 31, 2021, down from $1,839 from the previous-year quarter. Long-term debt marginally decreased to $7,437 million as of Dec 31, 2021. Free cash flow in first-quarter fiscal 2022 was $0.3 billion. During the reported quarter, Johnson Controls completed more than $500 million in share repurchases. It also raised the dividend by 26% and deployed more than $100 million in cash in acquisitions.
Guidance
For second-quarter fiscal 2022, Johnson Controls expects adjusted EPS in the range of 62-64 cents per share, an increase of 19-23% year over year. For fiscal 2022, adjusted EPS expectation is in the band of $3.22-$3.32, implying a 22-25% jump on a year-over-year basis.
Zacks Rank & Key Picks
Currently, Johnson Control carries a Zacks Rank #3 (Hold).
Some better-ranked players in the industrial space are Applied Industrial Technologies AIT, Donaldson Company DCI and KnowBe4 KNBE, each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Applied Technologies has an expected earnings growth rate of 17.38% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 7% upward over the past 60 days.
Applied Technologies’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AIT pulled off a trailing four-quarter earnings surprise of 27.96%, on average. The stock has also rallied 34.6% over a year.
Donaldson has an expected earnings growth rate of 10.83% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward over the past 60 days.
Donaldson’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. The stock has lost 8.7% over a year.
KnowBe4 has an expected earnings growth rate of 37.5% for the current year. The Zacks Consensus Estimate for earnings for the current year has been stable over the past 60 days.
KnowBe4’s earnings topped the Zacks Consensus Estimate in the trailing three quarters, average beat being 133.33%, on average. The stock has also rallied 3.6% over a year.
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Johnson Controls International plc (JCI): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
KnowBe4, Inc. (KNBE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked players in the industrial space are Applied Industrial Technologies AIT, Donaldson Company DCI and KnowBe4 KNBE, each carrying a Zacks Rank #2 (Buy) currently. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Some better-ranked players in the industrial space are Applied Industrial Technologies AIT, Donaldson Company DCI and KnowBe4 KNBE, each carrying a Zacks Rank #2 (Buy) currently. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Some better-ranked players in the industrial space are Applied Industrial Technologies AIT, Donaldson Company DCI and KnowBe4 KNBE, each carrying a Zacks Rank #2 (Buy) currently. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | Some better-ranked players in the industrial space are Applied Industrial Technologies AIT, Donaldson Company DCI and KnowBe4 KNBE, each carrying a Zacks Rank #2 (Buy) currently. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. Donaldson Company, Inc. (DCI): Free Stock Analysis Report | 82940077-b352-430d-92c1-f96def2b9682 |
709714.0 | 2022-02-01 00:00:00 UTC | Donaldson Company, Inc. (NYSE:DCI) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap? | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-nyse%3Adci-stock-has-shown-weakness-lately-but-financials-look-strong | nan | nan | It is hard to get excited after looking at Donaldson Company's (NYSE:DCI) recent performance, when its stock has declined 9.7% over the past three months. However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on Donaldson Company's ROE.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
How Is ROE Calculated?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Donaldson Company is:
27% = US$302m ÷ US$1.1b (Based on the trailing twelve months to October 2021).
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.27 in profit.
Why Is ROE Important For Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Donaldson Company's Earnings Growth And 27% ROE
To begin with, Donaldson Company has a pretty high ROE which is interesting. Second, a comparison with the average ROE reported by the industry of 10% also doesn't go unnoticed by us. This likely paved the way for the modest 7.4% net income growth seen by Donaldson Company over the past five years. growth
We then performed a comparison between Donaldson Company's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 8.7% in the same period.
NYSE:DCI Past Earnings Growth February 1st 2022
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is DCI worth today? The intrinsic value infographic in our free research report helps visualize whether DCI is currently mispriced by the market.
Is Donaldson Company Making Efficient Use Of Its Profits?
With a three-year median payout ratio of 41% (implying that the company retains 59% of its profits), it seems that Donaldson Company is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
Additionally, Donaldson Company has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 28% over the next three years. Regardless, the ROE is not expected to change much for the company despite the lower expected payout ratio.
Conclusion
In total, we are pretty happy with Donaldson Company's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is hard to get excited after looking at Donaldson Company's (NYSE:DCI) recent performance, when its stock has declined 9.7% over the past three months. The intrinsic value infographic in our free research report helps visualize whether DCI is currently mispriced by the market. NYSE:DCI Past Earnings Growth February 1st 2022 Earnings growth is an important metric to consider when valuing a stock. | NYSE:DCI Past Earnings Growth February 1st 2022 Earnings growth is an important metric to consider when valuing a stock. It is hard to get excited after looking at Donaldson Company's (NYSE:DCI) recent performance, when its stock has declined 9.7% over the past three months. What is DCI worth today? | It is hard to get excited after looking at Donaldson Company's (NYSE:DCI) recent performance, when its stock has declined 9.7% over the past three months. NYSE:DCI Past Earnings Growth February 1st 2022 Earnings growth is an important metric to consider when valuing a stock. What is DCI worth today? | It is hard to get excited after looking at Donaldson Company's (NYSE:DCI) recent performance, when its stock has declined 9.7% over the past three months. NYSE:DCI Past Earnings Growth February 1st 2022 Earnings growth is an important metric to consider when valuing a stock. What is DCI worth today? | 7291a7de-2089-4f15-8e46-6ae115590ee6 |
709715.0 | 2022-01-31 00:00:00 UTC | The Zacks Analyst Blog Highlights: Whirlpool, United Microelectronics Corp., FedEx Corp., Donaldson Company, Inc. and HP Inc | DCI | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-whirlpool-united-microelectronics-corp.-fedex-corp. | nan | nan | For Immediate Release
Chicago, IL – January 31, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Whirlpool WHR, United Microelectronics Corp. UMC, FedEx Corp. FDX, Donaldson Company, Inc. DCI and HP Inc. HPQ.
Here are highlights from Friday’s Analyst Blog:
5 Stocks to Buy as Markets Struggle Moving Higher
The markets clearly remain in correction mode due to heightened uncertainty related to Fed hawkishness. So much so that we are fretting about headlines without considering the facts hidden inside.
Many would have for instance been concerned that consumer confidence declined in January. But if you only look further into the Conference Board’s press release, you find that the Present Situation Index—based on consumers’ assessment of current business and labor market conditions—improved.
And this means that the operating environment, that a rate hike won't fix, is getting better. And if you look further down, you find it says that “the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.” Inflation concerns are also easing so price hikes should moderate. The pandemic remains the only wild card.
The same can be said about the decline in weekly initial jobless claims, which reversed a four-week trend during which claims increased as a result of the more infectious Omicron variant. The decline seems to indicate that Omicron fears are easing if not disappearing.
But most important (and unfortunate) is the fact that we are ignoring how this is turning out to be a perfectly decent earnings season. And so, we are afraid of jumping into stocks that report strong results and provide encouraging outlooks, even when this is one of the most important factors driving any market. This may sound irrational, but irrationality is a natural consequence of fear.
Watching the way markets continue to fall every day is disconcerting of course. But fear makes things worse because it leads us to miss opportunities. Weak markets are a good time to scout for undervalued growth stocks. And if they are large-cap stocks with operations across diverse markets or sell into diverse markets, all the better. Especially if they have solid cash flows and also pay a dividend.
That’s what I’m presenting here in this list of five stocks-
Whirlpool
One of the largest manufacturers of home appliances in the world, Whirlpool produces things like refrigerators and related products; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. It operates production facilities in a number of countries and sells these products in nearly every country around the world. So it has great geographical diversity.
Although the company is seeing rising raw material costs, its pricing actions are improving the mix of business and offsetting the negative impact on revenue. As a result, it was able to produce strong results for 2021, in which revenue grew 13% and earnings 44%.
Management is projecting 5-6% revenue growth in 2022, which is above the 4% expected CAGR for the market between 2021 and 2026. Rising interest rates should also benefit the company, first, by containing inflationary costs and second, by helping the consumer that buys its products.
As a result, Whirlpool generates strong cash flows and has a strong balance sheet.
It returns value to shareholders through both share buybacks and dividends. Its current dividend yield is 2.80%.
The shares carry a Zacks Rank #2 (Buy) and growth score of A. The forward P/E is under 10 and price to sales below 1, with both values being below the median level in the last 5 years and below the S&P 500. The PEG is also under 1, which means that Whirlpool’s earnings potential is undervalued. So the shares look undervalued and worth picking up at these levels.
United Microelectronics Corp.
United Microelectronics is one of the largest semiconductor foundries located in Taiwan. The nature of the business is such that only hi-tech companies would require it’s the manufacturing services that it provides. So its diversification stems from the end markets that use these chips (communication, consumer, computing and other) and the countries and regions that use the end products into which its chips go.
The market for chips remains extremely tight, which is leading to high utilization of existing capacity and strong pricing, which together are translating into robust profitability. Additionally, capacity is being built up to alleviate current chip shortages.
United Microelectronics also pays a dividend that currently yields around 2.14%.
The shares carry a Zacks Rank #2 and growth score of A. The PEG is below 1, which means that United Microelectronics’ earnings potential is undervalued. The forward P/E is under 10 and price to sales although above 1 is well below the S&P 500. Overall, the shares look reasonably valued and worth picking up at these levels.
FedEx Corp.
FedEx provides transportation, e-commerce and business services both in the U.S. and across a number of markets internationally. It operates under the well-known FedEx brand.
The company is managed for the long term, so investments in technology and assets are made in a way that tends to generate long-term stability. It is currently focused on increasing core capabilities and digital innovation.
The company has particularly benefited from the surge in ecommerce since the pandemic first hit. Strong demand continues across its business, leading to pricing strength.
Shareholders are rewarded through both share buybacks and dividends. Fedex’s dividend currently yields 1.23%.
Fedex shares carry a Zacks Rank #2 (Buy) and growth score of A. Its shares are trading below median value on the basis of forward twelve months’ earnings and sales over the last 5 years. While its PEG is over 1, it is only slightly over the S&P’s.
Donaldson Company, Inc.
Donaldson is a manufacturer of filtration systems and replacement parts. It describes its core strengths as being its leadership in filtration technology, its strong customer relationships and its global presence.
Donaldson’s geographical diversity (manufactures and sells products across the world) and end market presence (agriculture, construction, aerospace, defense, mining and truck) are likely to provide stability this year and generate secular growth going forward. Acquisitions will further boost this growth. New European emission standards and new equipment production across end markets and geographies are positive for the off-road trucking business. A huge aftermarket business is also encouraging.
There are concerns that the higher-margin on-road business will soften this year and like other players, Donaldson is seeing supply chain and labor issues that are likely to drive up costs this year.
Notwithstanding these headwinds, its earnings are expected to grow., likely helped by recent investment in building operating leverage.
What’s more, it also buys back shares and pays a dividend that yields 1.60%. Donaldson generally raises the dividend every year.
Donaldson shares carry a Zacks Rank #2 (Buy) and growth score of B. Its shares are trading below median value on the basis of forward twelve months’ earnings and sales over the last 5 years. Its PEG is under 1 and also below the median level in the last 5 years. It compares favorably with S&P 500 on all valuation metrics.
HP Inc.
HP is the world’s second largest provider of personal computers and a leading supplier of other access devices, imaging and printing products, and related technologies, solutions and services to individual consumers, SMBs and large enterprises, including customers in the government, health and education sectors. Its products are sold all over the world.
While the computing market is undergoing a slowdown after a couple of years of very strong growth, and continued supply chain issues remain a headwind, a broad base of served markets softens the impact. And even as the consumer side softens, enterprise demand is coming back to offset some of the weakness. This makes for a relatively steady business that generates strong cash flows.
And as a result, HP is able to return cash to investors through both share repurchases and dividends. HP’s current dividend yields 2.86%.
HP shares have a Zacks Rank #2 and growth score of A. Valuation is also reasonable with a P/E well below 10 and a P/S well below 1. Both values are below their median levels over the last 5 years. So although the PEG value exceeds 1, the shares are worth buying at these price levels.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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HP Inc. (HPQ): Free Stock Analysis Report
Whirlpool Corporation (WHR): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
United Microelectronics Corporation (UMC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Whirlpool WHR, United Microelectronics Corp. UMC, FedEx Corp. FDX, Donaldson Company, Inc. DCI and HP Inc. HPQ. Donaldson Company, Inc. (DCI): Free Stock Analysis Report And if you look further down, you find it says that “the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.” Inflation concerns are also easing so price hikes should moderate. | Stocks recently featured in the blog include: Whirlpool WHR, United Microelectronics Corp. UMC, FedEx Corp. FDX, Donaldson Company, Inc. DCI and HP Inc. HPQ. Donaldson Company, Inc. (DCI): Free Stock Analysis Report That’s what I’m presenting here in this list of five stocks- Whirlpool One of the largest manufacturers of home appliances in the world, Whirlpool produces things like refrigerators and related products; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. | Stocks recently featured in the blog include: Whirlpool WHR, United Microelectronics Corp. UMC, FedEx Corp. FDX, Donaldson Company, Inc. DCI and HP Inc. HPQ. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson’s geographical diversity (manufactures and sells products across the world) and end market presence (agriculture, construction, aerospace, defense, mining and truck) are likely to provide stability this year and generate secular growth going forward. | Stocks recently featured in the blog include: Whirlpool WHR, United Microelectronics Corp. UMC, FedEx Corp. FDX, Donaldson Company, Inc. DCI and HP Inc. HPQ. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Strong demand continues across its business, leading to pricing strength. | edf247fc-51e8-481c-b2ee-b5cf7a5acc73 |
709716.0 | 2022-01-28 00:00:00 UTC | 5 Stocks to Buy As Markets Move Lower | DCI | https://www.nasdaq.com/articles/5-stocks-to-buy-as-markets-move-lower | nan | nan | The markets clearly remain in correction mode due to heightened uncertainty related to Fed hawkishness. So much so that we are fretting about headlines without considering the facts hidden inside.
Many would have for instance been concerned that consumer confidence declined in January. But if you only look further into Conference Board’s press release, you find that the Present Situation Index—based on consumers’ assessment of current business and labor market conditions—improved.
And this means that the operating environment, that a rate hike wont fix is getting better. And if you look further down, you find it says that “the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.” Inflation concerns are also easing so price hikes should moderate. The pandemic remains the only wild card.
The same can be said about the decline in weekly initial jobless claims, that reversed a four-week trend during which claims increased as a result of the more infectious Omicron variant. The decline seems to indicate that Omicron fears are easing if not disappearing.
But most important (and unfortunate) is the fact that we are ignoring how this is turning out to be a perfectly decent earnings season. And so, we are afraid of jumping into stocks that report strong results and provide encouraging outlooks, even when this is one of the most important factors driving any market. This may sound irrational, but irrationality is a natural consequence of fear.
Watching the way markets continue to fall every day is disconcerting of course. But fear makes things worse because it leads us to miss opportunities. Weak markets are a good time to scout for undervalued growth stocks. And if they are large-cap stocks with operations across diverse markets or sell into diverse markets, all the better. Especially if they have solid cash flows and also pay a dividend.
That’s what I’m presenting here in this list of five stocks-
Whirlpool WHR
One of the largest manufacturers of home appliances in the world, Whirlpool produces things like refrigerators and related products; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. It operates production facilities in a number of countries and sells these products in nearly every country around the world. So it has great geographical diversity.
Although the company is seeing rising raw material costs, its pricing actions are improving the mix of business and offsetting the negative impact on revenue. As a result, it was able to produce strong results for 2021, in which revenue grew 13% and earnings 44%.
Management is projecting 5-6% revenue growth in 2022, which is above the 4% expected CAGR for the market between 2021 and 2026. Rising interest rates should also benefit the company, first, by containing inflationary costs and second, by helping the consumer that buys its products.
As a result, Whirlpool generates strong cash flows and has a strong balance sheet.
It returns value to shareholders through both share buybacks and dividends. Its current dividend yield is 2.80%.
The shares carry a Zacks Rank #2 (Buy) and growth score of A. The forward P/E is under 10 and price to sales below 1, with both values being below the median level in the last 5 years and below the S&P 500. The PEG is also under 1, which means that Whirlpool’s earnings potential is undervalued. So the shares look undervalued and worth picking up at these levels.
United Microelectronics Corp. UMC
United Microelectronics is one of the largest semiconductor foundries located in Taiwan. The nature of the business is such that only hi-tech companies would require it’s the manufacturing services that it provides. So its diversification stems from the end markets that use these chips (communication, consumer, computing and other) and the countries and regions that use the end products into which its chips go.
The market for chips remains extremely tight, which is leading to high utilization of existing capacity and strong pricing, which together are translating into robust profitability. Additionally, capacity is being built up to alleviate current chip shortages.
United Microelectronics also pays a dividend that currently yields around 2.14%.
The shares carry a Zacks Rank #2 and growth score of A. The PEG is below 1, which means that United Microelectronics’ earnings potential is undervalued. The forward P/E is under 10 and price to sales although above 1 is well below the S&P 500. Overall, the shares look reasonably valued and worth picking up at these levels.
FedEx Corporation FDX
FedEx provides transportation, e-commerce and business services both in the U.S. and across a number of markets internationally. It operates under the well-known FedEx brand.
The company is managed for the long term, so investments in technology and assets are made in a way that tends to generate long-term stability. It is currently focused on increasing core capabilities and digital innovation.
The company has particularly benefited from the surge in ecommerce since the pandemic first hit. Strong demand continues across its business, leading to pricing strength.
Shareholders are rewarded through both share buybacks and dividends. Fedex’s dividend currently yields 1.23%.
Fedex shares carry a Zacks Rank #2 (Buy) and growth score of A. Its shares are trading below median value on the basis of forward twelve months’ earnings and sales over the last 5 years. While its PEG is over 1, it is only slightly over the S&P’s.
Donaldson Company, Inc. DCI
Donaldson is a manufacturer of filtration systems and replacement parts. It describes its core strengths as being its leadership in filtration technology, its strong customer relationships and its global presence.
Donaldson’s geographical diversity (manufactures and sells products across the world) and end market presence (agriculture, construction, aerospace, defense, mining and truck) are likely to provide stability this year and generate secular growth going forward. Acquisitions will further boost this growth. New European emission standards and new equipment production across end markets and geographies are positive for the off-road trucking business. A huge aftermarket business is also encouraging.
There are concerns that the higher-margin on-road business will soften this year and like other players, Donaldson is seeing supply chain and labor issues that are likely to drive up costs this year.
Notwithstanding these headwinds, its earnings are expected to grow., likely helped by recent investment in building operating leverage.
What’s more, it also buys back shares and pays a dividend that yields 1.60%. Donaldson generally raises the dividend every year.
Donaldson shares carry a Zacks Rank #2 (Buy) and growth score of B. its shares are trading below median value on the basis of forward twelve months’ earnings and sales over the last 5 years. Its PEG is under 1 and also below the median level in the last 5 years. It compares favorably with S&P 500 on all valuation metrics.
HP Inc. HPQ
HP is the world’s second largest provider of personal computers and a leading supplier of other access devices, imaging and printing products, and related technologies, solutions and services to individual consumers, SMBs and large enterprises, including customers in the government, health and education sectors. Its products are sold all over the world.
While the computing market is undergoing a slowdown after a couple of years of very strong growth, and continued supply chain issues remain a headwind, a broad base of served markets softens the impact. And even as the consumer side softens, enterprise demand is coming back to offset some of the weakness. This makes for a relatively steady business that generates strong cash flows.
And as a result, HP is able to return cash to investors through both share repurchases and dividends. HP’s current dividend yields 2.86%.
HP shares have a Zacks Rank #2 and growth score of A. Valuation is also reasonable with a P/E well below 10 and a P/S well below 1. Both values are below their median levels over the last 5 years. So although the PEG value exceeds 1, the shares are worth buying at these price levels.
One-Month Price Movement
Image Source: Zacks Investment Research
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
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Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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HP Inc. (HPQ): Free Stock Analysis Report
Whirlpool Corporation (WHR): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
United Microelectronics Corporation (UMC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. DCI Donaldson is a manufacturer of filtration systems and replacement parts. Donaldson Company, Inc. (DCI): Free Stock Analysis Report And if you look further down, you find it says that “the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.” Inflation concerns are also easing so price hikes should moderate. | Donaldson Company, Inc. DCI Donaldson is a manufacturer of filtration systems and replacement parts. Donaldson Company, Inc. (DCI): Free Stock Analysis Report That’s what I’m presenting here in this list of five stocks- Whirlpool WHR One of the largest manufacturers of home appliances in the world, Whirlpool produces things like refrigerators and related products; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. | Donaldson Company, Inc. DCI Donaldson is a manufacturer of filtration systems and replacement parts. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Donaldson’s geographical diversity (manufactures and sells products across the world) and end market presence (agriculture, construction, aerospace, defense, mining and truck) are likely to provide stability this year and generate secular growth going forward. | Donaldson Company, Inc. DCI Donaldson is a manufacturer of filtration systems and replacement parts. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Strong demand continues across its business, leading to pricing strength. | 37ad1cae-0572-4e2e-b6a4-332b9ac7f69c |
709717.0 | 2022-01-27 00:00:00 UTC | Donaldson Co. Inc. Shares Fall 0.9% Below Previous 52-Week Low - Market Mover | DCI | https://www.nasdaq.com/articles/donaldson-co.-inc.-shares-fall-0.9-below-previous-52-week-low-market-mover | nan | nan | Donaldson Co. Inc. (DCI) shares closed 0.9% lower than its previous 52 week low, giving the company a market cap of $6B. The stock is currently down 7.0% year-to-date, down 7.7% over the past 12 months, and up 39.3% over the past five years. This week, the Dow Jones Industrial Average fell 2.5%, and the S&P 500 fell 4.1%.
Trading Activity
Trading volume this week was 27.3% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 1.0.
Technical Indicators
The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 14.7%
The company's stock price performance over the past 12 months beats the peer average by -24.2%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 93.9% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co. Inc. (DCI) shares closed 0.9% lower than its previous 52 week low, giving the company a market cap of $6B. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.0. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 14.7% The company's stock price performance over the past 12 months beats the peer average by -24.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 93.9% higher than the average peer. | Donaldson Co. Inc. (DCI) shares closed 0.9% lower than its previous 52 week low, giving the company a market cap of $6B. This week, the Dow Jones Industrial Average fell 2.5%, and the S&P 500 fell 4.1%. Trading Activity Trading volume this week was 27.3% higher than the 20-day average. | Donaldson Co. Inc. (DCI) shares closed 0.9% lower than its previous 52 week low, giving the company a market cap of $6B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 14.7% The company's stock price performance over the past 12 months beats the peer average by -24.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 93.9% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Donaldson Co. Inc. (DCI) shares closed 0.9% lower than its previous 52 week low, giving the company a market cap of $6B. This week, the Dow Jones Industrial Average fell 2.5%, and the S&P 500 fell 4.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought. | a9ef7318-c8af-402f-9714-5a075cc1f9be |
709718.0 | 2022-01-26 00:00:00 UTC | Sharps Compliance (SMED) Misses Q2 Earnings Estimates | DCI | https://www.nasdaq.com/articles/sharps-compliance-smed-misses-q2-earnings-estimates | nan | nan | Sharps Compliance (SMED) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -12.50%. A quarter ago, it was expected that this medical waste management company would post a loss of $0.03 per share when it actually produced a loss of $0.04, delivering a surprise of -33.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Sharps Compliance, which belongs to the Zacks Pollution Control industry, posted revenues of $18.88 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 2.52%. This compares to year-ago revenues of $17.01 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sharps Compliance shares have lost about 7.9% since the beginning of the year versus the S&P 500's decline of -8.6%.
What's Next for Sharps Compliance?
While Sharps Compliance has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sharps Compliance: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $16.19 million in revenues for the coming quarter and $0.11 on $65.84 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Pollution Control is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Donaldson (DCI), has yet to report results for the quarter ended January 2022.
This maker of filtration systems is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +19.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Donaldson's revenues are expected to be $768.2 million, up 13.1% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Donaldson (DCI), has yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Donaldson Company, Inc. (DCI): Free Stock Analysis Report Another stock from the same industry, Donaldson (DCI), has yet to report results for the quarter ended January 2022. Sharps Compliance, which belongs to the Zacks Pollution Control industry, posted revenues of $18.88 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 2.52%. | Another stock from the same industry, Donaldson (DCI), has yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Sharps Compliance (SMED) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.08 per share. | Another stock from the same industry, Donaldson (DCI), has yet to report results for the quarter ended January 2022. Donaldson Company, Inc. (DCI): Free Stock Analysis Report Sharps Compliance (SMED) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.08 per share. | 3a7e7bca-5d67-41a2-85a7-57e4f5db387a |
709719.0 | 2021-12-20 00:00:00 UTC | How The Parts Add Up: REGL Headed For $79 | DCI | https://www.nasdaq.com/articles/how-the-parts-add-up%3A-regl-headed-for-%2479 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the ProShares S&P MidCap 400 Dividend Aristocrats ETF (Symbol: REGL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $79.49 per unit.
With REGL trading at a recent price near $72.07 per unit, that means that analysts see 10.30% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of REGL's underlying holdings with notable upside to their analyst target prices are UGI Corp. (Symbol: UGI), Donaldson Co. Inc. (Symbol: DCI), and Regal Rexnord Corp (Symbol: RRX). Although UGI has traded at a recent price of $44.89/share, the average analyst target is 18.81% higher at $53.33/share. Similarly, DCI has 17.16% upside from the recent share price of $57.40 if the average analyst target price of $67.25/share is reached, and analysts on average are expecting RRX to reach a target price of $183.43/share, which is 13.75% above the recent price of $161.25. Below is a twelve month price history chart comparing the stock performance of UGI, DCI, and RRX:
Combined, UGI, DCI, and RRX represent 5.69% of the ProShares S&P MidCap 400 Dividend Aristocrats ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL $72.07 $79.49 10.30%
UGI Corp. UGI $44.89 $53.33 18.81%
Donaldson Co. Inc. DCI $57.40 $67.25 17.16%
Regal Rexnord Corp RRX $161.25 $183.43 13.75%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of UGI, DCI, and RRX: Combined, UGI, DCI, and RRX represent 5.69% of the ProShares S&P MidCap 400 Dividend Aristocrats ETF. ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL $72.07 $79.49 10.30% UGI Corp. UGI $44.89 $53.33 18.81% Donaldson Co. Inc. DCI $57.40 $67.25 17.16% Regal Rexnord Corp RRX $161.25 $183.43 13.75% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of REGL's underlying holdings with notable upside to their analyst target prices are UGI Corp. (Symbol: UGI), Donaldson Co. Inc. (Symbol: DCI), and Regal Rexnord Corp (Symbol: RRX). | Three of REGL's underlying holdings with notable upside to their analyst target prices are UGI Corp. (Symbol: UGI), Donaldson Co. Inc. (Symbol: DCI), and Regal Rexnord Corp (Symbol: RRX). Below is a twelve month price history chart comparing the stock performance of UGI, DCI, and RRX: Combined, UGI, DCI, and RRX represent 5.69% of the ProShares S&P MidCap 400 Dividend Aristocrats ETF. ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL $72.07 $79.49 10.30% UGI Corp. UGI $44.89 $53.33 18.81% Donaldson Co. Inc. DCI $57.40 $67.25 17.16% Regal Rexnord Corp RRX $161.25 $183.43 13.75% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, DCI has 17.16% upside from the recent share price of $57.40 if the average analyst target price of $67.25/share is reached, and analysts on average are expecting RRX to reach a target price of $183.43/share, which is 13.75% above the recent price of $161.25. Three of REGL's underlying holdings with notable upside to their analyst target prices are UGI Corp. (Symbol: UGI), Donaldson Co. Inc. (Symbol: DCI), and Regal Rexnord Corp (Symbol: RRX). Below is a twelve month price history chart comparing the stock performance of UGI, DCI, and RRX: Combined, UGI, DCI, and RRX represent 5.69% of the ProShares S&P MidCap 400 Dividend Aristocrats ETF. | Three of REGL's underlying holdings with notable upside to their analyst target prices are UGI Corp. (Symbol: UGI), Donaldson Co. Inc. (Symbol: DCI), and Regal Rexnord Corp (Symbol: RRX). Similarly, DCI has 17.16% upside from the recent share price of $57.40 if the average analyst target price of $67.25/share is reached, and analysts on average are expecting RRX to reach a target price of $183.43/share, which is 13.75% above the recent price of $161.25. Below is a twelve month price history chart comparing the stock performance of UGI, DCI, and RRX: Combined, UGI, DCI, and RRX represent 5.69% of the ProShares S&P MidCap 400 Dividend Aristocrats ETF. | fb6de7f8-dd93-4673-a0b7-571ff979958b |
709720.0 | 2021-12-03 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for December 06, 2021 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-dci-ex-dividend-date-scheduled-for-december-06-2021 | nan | nan | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on December 06, 2021. A cash dividend payment of $0.22 per share is scheduled to be paid on December 22, 2021. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that DCI has paid the same dividend. At the current stock price of $56.95, the dividend yield is 1.55%.
The previous trading day's last sale of DCI was $56.95, representing a -17.88% decrease from the 52 week high of $69.35 and a 8.48% increase over the 52 week low of $52.50.
DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Fuel Tech, Inc. (FTEK). DCI's current earnings per share, an indicator of a company's profitability, is $2.37. Zacks Investment Research reports DCI's forecasted earnings growth in 2022 as 13.86%, compared to an industry average of -7.9%.
For more information on the declaration, record and payment dates, visit the dci Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Fuel Tech, Inc. (FTEK). Zacks Investment Research reports DCI's forecasted earnings growth in 2022 as 13.86%, compared to an industry average of -7.9%. For more information on the declaration, record and payment dates, visit the dci Dividend History page. | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on December 06, 2021. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. DCI's current earnings per share, an indicator of a company's profitability, is $2.37. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that DCI has paid the same dividend. For more information on the declaration, record and payment dates, visit the dci Dividend History page. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. Donaldson Company, Inc. (DCI) will begin trading ex-dividend on December 06, 2021. This marks the 3rd quarter that DCI has paid the same dividend. | e9238960-54a2-4ff4-be5f-7aa2565f016c |
709721.0 | 2021-12-02 00:00:00 UTC | Ex-Div Reminder for Donaldson (DCI) | DCI | https://www.nasdaq.com/articles/ex-div-reminder-for-donaldson-dci | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 12/6/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.22, payable on 12/22/21. As a percentage of DCI's recent stock price of $55.83, this dividend works out to approximately 0.39%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.58% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of DCI shares, versus its 200 day moving average:
Looking at the chart above, DCI's low point in its 52 week range is $52.50 per share, with $69.35 as the 52 week high point — that compares with a last trade of $55.73.
In Thursday trading, Donaldson Co. Inc. shares are currently up about 0.9% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of DCI's recent stock price of $55.83, this dividend works out to approximately 0.39%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.58% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $52.50 per share, with $69.35 as the 52 week high point — that compares with a last trade of $55.73. | As a percentage of DCI's recent stock price of $55.83, this dividend works out to approximately 0.39%. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $52.50 per share, with $69.35 as the 52 week high point — that compares with a last trade of $55.73. Looking at the universe of stocks we cover at Dividend Channel, on 12/6/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.22, payable on 12/22/21. | Looking at the universe of stocks we cover at Dividend Channel, on 12/6/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.22, payable on 12/22/21. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.58% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $52.50 per share, with $69.35 as the 52 week high point — that compares with a last trade of $55.73. | As a percentage of DCI's recent stock price of $55.83, this dividend works out to approximately 0.39%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.58% on annualized basis is a reasonable expectation of annual yield going forward. Looking at the universe of stocks we cover at Dividend Channel, on 12/6/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.22, payable on 12/22/21. | 07fc10af-dd26-4c6e-8bdb-614a17e6975f |
709722.0 | 2021-12-02 00:00:00 UTC | What Type Of Shareholders Make Up Donaldson Company, Inc.'s (NYSE:DCI) Share Registry? | DCI | https://www.nasdaq.com/articles/what-type-of-shareholders-make-up-donaldson-company-inc.s-nyse%3Adci-share-registry | nan | nan | The big shareholder groups in Donaldson Company, Inc. (NYSE:DCI) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Donaldson Company has a market capitalization of US$7.0b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Donaldson Company.
NYSE:DCI Ownership Breakdown December 2nd 2021
What Does The Institutional Ownership Tell Us About Donaldson Company?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Donaldson Company already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Donaldson Company's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:DCI Earnings and Revenue Growth December 2nd 2021
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Donaldson Company. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 9.9% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 8.6% of common stock, and State Farm Insurance Companies, Asset Management Arm holds about 8.2% of the company stock.
Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Donaldson Company
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders own under 1% of Donaldson Company, Inc. in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$30m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 19% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:DCI Earnings and Revenue Growth December 2nd 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. The big shareholder groups in Donaldson Company, Inc. (NYSE:DCI) have power over the company. NYSE:DCI Ownership Breakdown December 2nd 2021 What Does The Institutional Ownership Tell Us About Donaldson Company? | NYSE:DCI Earnings and Revenue Growth December 2nd 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. The big shareholder groups in Donaldson Company, Inc. (NYSE:DCI) have power over the company. NYSE:DCI Ownership Breakdown December 2nd 2021 What Does The Institutional Ownership Tell Us About Donaldson Company? | The big shareholder groups in Donaldson Company, Inc. (NYSE:DCI) have power over the company. NYSE:DCI Ownership Breakdown December 2nd 2021 What Does The Institutional Ownership Tell Us About Donaldson Company? NYSE:DCI Earnings and Revenue Growth December 2nd 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. | The big shareholder groups in Donaldson Company, Inc. (NYSE:DCI) have power over the company. NYSE:DCI Ownership Breakdown December 2nd 2021 What Does The Institutional Ownership Tell Us About Donaldson Company? NYSE:DCI Earnings and Revenue Growth December 2nd 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. | 0d412820-3661-457d-b848-dd6148bf4e72 |
709723.0 | 2021-12-01 00:00:00 UTC | Donaldson Company, inc (DCI) Q1 2022 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-company-inc-dci-q1-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Donaldson Company, inc (NYSE: DCI)
Q1 2022 Earnings Call
Dec 1, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Donaldson First Quarter 2022 Earnings Conference Call. [Operator Instructions]
Now I'll turn the call over to Sarika Dhadwal, Donaldson's Director of Investor Relations.
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Sarika Dhadwal -- Director of Investor Relations
Good morning. Thank you for joining Donaldson's first quarter of fiscal 2022earnings conference call With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our first quarter performance and details on our outlook for the balance of fiscal 2022.
During today's call, we will reference non-GAAP metrics. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.
With that, I'll turn the call over to Tod Carpenter.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, everyone. I am pleased to report record first quarter results. We grew our sales to $761 million, sales were up 20% and EPS was up 26% versus last year. It was an encouraging quarter for Donaldson, particularly given the backdrop of well documented supply chain disruptions, labor shortages and significant cost inflation. In the face of these challenges, our team rose to the occasion and delivered, and I am proud of what we accomplished.
As we look to the remainder of the year, we expect the macro headwinds to persist. While we are well positioned to deal with these challenges, there is no doubt that we will feel near-term impacts. To address these macro challenges, we are pulling many levers, including raising prices to mitigate the impact of cost increases, utilizing our geographically diverse manufacturing and distribution footprint to meet the needs of our global customers and to mitigate labor-constraint issues, particularly in the U.S. and aggressively recruiting and competing for talent to expand our strong team of dedicated employees. As we navigate the year, we are also investing for future organic and inorganic growth. We continue to spend on our R&D to ensure we remain the leader in what we do best, technology-led filtration.
I'm also pleased to have two new acquisitions under our belt. First, we recently announced the acquisition of Solaris Biotech. Solaris is a designer and manufacturer of bioprocessing and filtration equipment used in food and beverage, biotechnology and other life sciences markets. We've been working hard to expand our reach in the life sciences, and this acquisition is the first step in our string of pearls strategy to get there. We can now leverage Solaris' technology and customer relationships to advance our capabilities in this space. I am confident in our ability to scale the Solaris business with our commercial capabilities and strong balance sheet.
Our second recent acquisition was that of P-A Industrial Services. We closed this transaction on November 1 with a purchase price of $4 million. While the company only generates a little under $4 million in revenue today, this acquisition allows us to support our Industrial segment with the addition of a services business. Donaldson and P-A Industrial share the vision of delivering superior service along with great products to help our customers' operations run better.
We believe we are heading into the balance of the year from a position of strength. And we feel good about our ability to navigate the near-term challenges, while still building our business for the future. With that said, we are raising our top and bottom line guidance for fiscal 2022 based on a few factors; first quarter results, higher sales expectations driven in part by incremental pricing and operating expense leverage.
We will share more details about our fiscal '22 outlook later in the call. So I'll now provide some context on our first quarter sales. Total sales were $761 million, which is up 20% from last year, due in part to last year's softness related to the pandemic. In Engine, total sales were $527 million, up 21% with our first-fit businesses leading the charge once again.
Sales in Off-Road were $94 million, up 45%. Nearly half of the first quarter growth was driven by Exhaust and Emissions, reflecting a production ramp up related to new emission standards in Europe. As we've talked about before, the strength in this business does create mix pressure on margin. Beyond Exhaust and Emissions, first quarter sales in Off-Road also benefited from increased levels of equipment production across end markets and geographies. The exception was in the Asia Pacific region where we compared against the sales increase of nearly 40% in the prior year.
In On-Road, first quarter sales were $32 million or down 1.5% year-over-year. North America had the biggest decline, reflecting the discontinuation of some directed-buy equipment to a large OEM customer. Importantly, excluding this impact, total On-Road sales would have been up about 12% globally and up 7% in North America. As we look forward, we believe On-Road will be under additional pressure for the remainder of the year as many customers continue to struggle with supply chain issues, including the persistent chip shortage.
In Engine Aftermarket, sales in the first quarter were $374 million, an increase of 18% from the prior year. Aftermarket sales were up in all geographies and both channels. Independent channel sales grew in the mid-teens and OE channel sales were up in the low-20s. Our innovative proprietary products are always a big piece of the Aftermarket story. These products accounted for about 30% of total Aftermarket sales and grew about 20% year-over-year. Our independent channel is benefiting from continued strength in less mature markets. Brazil, Russia and South Africa put up impressive growth rates in the first quarter, and we are excited about our prospects in these geographies.
In the OE channel of Aftermarket, proprietary products are again contributing to our growth. In the first quarter, sales of these products were up in the mid-20% range and they now account for nearly 40% of our Aftermarket OE channel sales. Included in these figures is PowerCore, which achieved another quarterly record for Aftermarket sales and increased more than 18%.
Moving to Aerospace and Defense, first quarter sales of $28 million were up 23% year-over-year as the commercial aerospace industry rebounds from the pandemic-related pressure a year ago. Activity remains below pre-COVID levels in Aerospace, so there should be more growth to come as the industry continues to recover.
Lastly on Engine, I will quickly talk about China. Engine sales were down about 6% in the quarter. However, this is against a 40% increase last year. The increase last year reflects a faster rebound in China from the pandemic than we saw in other parts of the world. Overall, we remain pleased with our progress in the region. We are winning new business with local Chinese manufacturers. And over time, we continue to expand our share in this massive market.
Now on to Industrial. The Industrial segment had another solid quarter with total sales increasing 17% to $234 million. Sales of Industrial Filtration Solutions or IFS, grew 23% to $166 million with two-thirds of the increase coming from industrial dust collection. We had strong sales growth of new equipment and replacement parts, which reflects more investment and industrial capacity utilization. Process Filtration sales also contributed to first quarter growth in IFS. Process Filtration sales, which serve the food and beverage market, grew over 30% due to growth in new equipment and replacement parts in Europe.
First quarter sales of Special Applications were $52 million, up 23% with strong contributions across our product portfolio, including notable increases in our disk drive and membranes businesses. Also within Special Applications, first quarter sales of venting products grew 19%. We continue to build share in strategic markets, including high-tech vents for batteries and powertrains in the auto industry and expect venting solutions to contribute to our growth for years to come.
First quarter sales of Gas Turbine Systems or GTS were approximately $17 million, down 28% to almost entirely to timing of orders. Our outlook for the year has not changed and we expect to make up first quarter revenue shortfalls in the second quarter. Overall, we are off to a strong start for fiscal 2022 and I feel confident about our ability to successfully navigate this uncertain and volatile environment.
With that, I will turn it over to Scott for more details on our financials. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Tod. Good morning, everyone. To sum up the first quarter, our employees did an excellent job delivering solid results in a tough environment. First quarter sales grew 20%, operating income was up 23% and EPS of $0.61 was 26% above the prior year. First quarter operating margin increased 40 basis points to 14.1%. The increase was from leverage on higher sales, which was partially offset by gross margin pressure.
Driving into gross margin a bit further, the impact of raw material cost inflation built through the quarter. This impact was compounded by the fact that we were experiencing a deflationary environment one year ago. As we look at the remainder of the year, we will be impacted by ongoing inflationary headwinds. We will continue to build on the success we have had implementing price increases in several of our businesses to offset the cost pressure. That said, the full impact of the pricing benefits may take longer to materialize due to certain large OEM customers. We are in ongoing discussions with these customers, and we'll continue to drive toward offsetting the incremental costs we are currently absorbing.
On the operating expense front, we are pleased with our discipline and success in optimizing our levels of spend. We continue to invest in our Advance and Accelerate portfolio. This spend was offset by controlled expense management elsewhere in the organization. First quarter operating expense as a percent of sales was favorable by approximately 160 basis points, driven primarily by volume leverage. Other expense was favorable this quarter by $1.5 million, mostly due to a pension curtailment charge we took in the first quarter of last year.
Turning to the balance sheet and cash flow statements, I'd like to highlight a few things. Our first quarter cash conversion ratio was 32%, down meaningfully from last year, driven primarily by investments in inventory to further support our increasing demand. Inventory this quarter were up $60 million sequentially and $115 million year-over-year, mainly due to the impact of inflation, a commitment we made to increased levels of inventory to ensure we're adequately prepared to meet demand and supply chain challenges we have had internally with our customers on order deliveries. As a result, working capital was $71 million, net use of cash this quarter versus a $33 million benefit last year.
First quarter capital expenditures were $18 million as we invested in various projects, including PowerCore capacity expansion in North America. This quarter, we continued with our track record of returning cash to shareholders. We repurchased 1.3% of our outstanding shares for $103 million and we paid dividends of $27 million. Our strong balance sheet and financial flexibility has been an important asset, while operating in this challenging supply environment. We ended the quarter with a net debt to EBITDA ratio of 0.7 times.
Now I'd like to walk through our fiscal '22 outlook. First on sales. We are now expecting fiscal 2022 sales to be up between 8% and 12% with the nominal impact from currency translation. This increase from our previous guidance of 5% to 10% is driven by Q1 results as well as benefits from additional pricing actions that will be implemented and rolling over the balance of the year. We continue to expect a greater sales year-over-year increase in the first half versus the second, driven in large part by prior year comparisons.
From a segment perspective, we've increased our full year sales expectations for both Engine and Industrial. For the Engine segment, we expect the revenue increase between 8% and 12%, up from our previous expectation of between 5% to 10%. Within Engine, sales of our first-fit businesses are forecasted to be mixed. Off-Road sales are expected to grow in the high-teens versus last year due to increased levels of equipment production and the continued success of new program wins in our Exhaust and Emissions business. The Off-Road forecast is up slightly from the low-double-digit growth we've previously projected. In On-Road, we are seeing a slowdown in demand from some of our customers as they grapple with their own supply chain issues. Based on first quarter results and our current order trends, we now expect On-Road sales to be down low-single-digits versus our previous guide of up low-single-digits.
For Engine Aftermarket, we are increasing our expectations slightly to high-single-digit growth from our previous guidance of mid-single-digit growth. Equipment utilization remained strong and we are continuing to gain share with proprietary products. Our outlook for Aerospace and Defense has not changed. We are still forecasting low-double-digit growth for the year, due in large part to comping against the COVID-related market weakness in fiscal '21.
Now on to the Industrial segment. We expect sales to be up between 7% and 11%, which brings up the bottom end of our previous guidance range of 6% to 11% by a point. Sales of Industrial Filtration Solutions are planned up in the low-double-digit range consistent with the guidance we gave last quarter. Improved sales of new equipment and replacement parts, particularly dust collection as well as strength in process filtration will continue to be the drivers.
In terms of IFS, I would just like to mention that while revenue related to our recent acquisition of Solaris Biotech will follow in the segment, we do not expect a material impact this fiscal year. Solaris bookings for this calendar year are expected to be approximately EUR11 million. And revenue related to those bookings should flow through over the next several quarters.
Moving to GTS. We continue to expect fiscal '22 sales up high-single-digits. As Tod noted in his remarks, the first quarter sales decrease was a result of timing, and we do expect to recover those sales. Special Applications revenue is forecasted to be up low-single-digits versus our initial guidance of down low-single-digits, reflecting stronger than expected growth across the portfolio in the first quarter.
Now let's move to operating margin. We maintained our expectation for a full year rate between 14.1% and 14.7%. As a reminder, last year's adjusted operating margin was 14%. Expense leverage will be the primary driver of the year-over-year benefit. On gross margin, given what we saw in the first quarter and the trends we are seeing in raw material, freight and labor crisis, we believe the inflation headwind will be more significant than we originally planned. We expect to offset the higher costs with pricing over time. However, the net impact on gross margin will be greater than anticipated. And we now expect gross margin to be down 50 to 100 basis points from the prior year.
To expand further on this point, last quarter we said we expected to pay 8% to 10% more for our raw materials this year, which equated to about 300 basis points. That estimate is now 12% to 14% or a little shy of 400 basis points. Additionally, freight and labor costs have now become a more significant headwind than we anticipated, which results in additional 100 basis points of gross margin pressure. So as a result of these dynamics and our typical seasonality, we should see operating margin improve in the second half of the year versus the first half. Based on our updated forecast, we plan for a new EPS record of between $2.57 and $2.73, implying an increase from last year's adjusted EPS of 11% to 18%.
Just briefly on the balance sheet and cash flow outlook. In terms of capital expenditures, we are lowering our planned spend for this year to a range of between $90 million and $110 million. So essentially, a $10 million reduction to the range we provided in September of $100 million to $120 million. The macro headwinds we've been talking about this quarter are impacting almost every part of our business.
Given supply chain uncertainty and other variables, the timing of execution on some of our capacity expansion projects could be slowed. So we felt it prudent to bring the range down in line with current expectations. In terms of free cash flow, increased inventory levels, partially offset by the lower capex, result in a reduction to our free cash flow conversion forecast to between 70% and 80%, down from our initial guidance of 80% to 90%. On share repurchases, we still plan to repurchase about 2% of our outstanding shares this fiscal year.
In summary, I am pleased with our first quarter results. I am also confident our business model is equipped to manage the uncertain times ahead. While the results of our more recent pricing actions will take a bit of time to flow through our financials, we are taking the right steps to protect our margins and deliver record level of sales and profit this fiscal year. We are also committed to managing the business for long-term, and we'll continue to make thoughtful investments for future growth.
I'll now turn the call back to Tod.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. As we look to the rest of the fiscal year and beyond, I would like to touch on a few key paths we are pursuing to build on our success and push the company forward to the next stage of its evolution through profitable growth. First, we are continuing to invest in our existing Advance and Accelerate solutions, including Process Filtration, dust collection and replacement parts and Engine Aftermarket.
Second, we are diversifying the company's offerings, both organically and inorganically, to ensure we meet the needs of our existing and future customers globally. On the organic side, we are committed to our R&D. We previously invested $15 million for our materials research center, which will enable further development of our polymer-based chemistry solutions. It is also important to note, we increased our R&D budget this fiscal year by 10% over last year.
On inorganic diversification, the recent acquisitions of Solaris and P-A Industrial Services are just the beginning. Solaris is the first inorganic step on our journey to create a life sciences business. We are excited about the value we can add through ourglobal marketreach, science and technology, filtration capabilities and our ability to invest for future growth. This, combined with Solaris' market reputation and product portfolio, are a winning combination.
Third, we are investing in our people and recruiting the right talent to drive the company forward. We have made people investments in areas such as life sciences, food and beverage and ESG. Donaldson employees with their dedication and hard work are the core of our business.
Before we close, I also want to touch on our ESG efforts as this is an important part of our culture. We began global implementation of our environmental health and safety policies in 2018. Safety and greenhouse gas emission reductions are near-term priorities, and we're making progress. We are well on our way of reducing CO2 emissions by 6,000 metric tons by the end of fiscal 2022.
Our company is geographically and culturally diverse. We have strong governance, including a seasoned board with balanced tenure. Also critically important is the alignment of the compensation of our board and management with shareholder interest. So as I look out over the long-term, I strongly believe we have the right strategy in place to continue delivering value to our stakeholders for years to come.
Now I'll turn the call back to the operator to open the line for questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions] Our first question is from Brian Drab with William Blair. Your line is open.
Brian Drab -- William Blair & Co. -- Analyst
Hi, good morning. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Brian.
Brian Drab -- William Blair & Co. -- Analyst
Good morning. First, can you -- and I may have missed this. But can you talk about the big step up in the operating margin in Industrial versus what you saw in Engine and just the difference in the end markets and raw material situation that you're seeing in those two segments?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, hi. This is Scott. Hi, Brian. Nice to talk to you. So our Industrial products operating margin last year was 13.7% and this year it was 16.4%. So first of all, keep in mind, we're coming off of COVID comps with tough volumes and then weaker leverage. We're pleased with the performance of our Industrial business. And now we're investing in higher margin opportunities that are driving the mix up and they're doing an excellent job of leveraging the new volumes that they're experiencing, especially as compared to last year when we were kind of under the COVID bug a bit.
Engine margins were down 20 basis points from 13.9 to 13.7. And that's a result of the inflationary pressures we're seeing and the pricing actions we're executing and our pricing actions are behind our cost increases. And that's one of the reasons we brought our margin guidance down for the year because we're assessing our inflation and our pricing and trying to determine the ultimate impact of both of those two.
So we're pleased with our margin performance this year. Overall, we're committed to higher levels of profitability on higher sales. We did 14.0 total last year. This year we have a guide of 14.1 to 14.7. So at the midpoint, that's 14.4 or 40 basis points of improvement this year, which I think would be a good accomplishment for the company and something I think we can deliver.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, Brian, this is Tod. Maybe just one point to add. So as Scott referred to and as we have referred to in prior calls, our ability to mix up on the Industrial side with our strategic execution is really what you're seeing sum up, but also, as we've talked about multiple times about our pricing model in Industrial and the fact that we can take quicker action in Industrial rather than against some of the other backdrops and headwinds that we feel on the Engine-based OE side. So Industrial, it does reflect some positive pricing actions as well.
Brian Drab -- William Blair & Co. -- Analyst
Got it. And in IFS, you have this momentum in food and beverage. Is that higher margin business?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, it's higher than company average.
Brian Drab -- William Blair & Co. -- Analyst
Okay. And can you say -- give us a rough idea of what percentage now does Process Filtration account for within IFS?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. I believe we said in the past it's roughly between $80 million and $90 million. So we've grown it rather nicely, and we continue to have good momentum.
Brian Drab -- William Blair & Co. -- Analyst
Okay. And then last one just on this topic. Are there specific applications, I guess, particularly in Europe that you're winning? And are there some big share gain opportunities potentially in those applications as you look globally or even with other customers in Europe?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. So we are pretty broad-based with the wins that we have. It's heavily replacement parts related at the moment. With the acquisition of Solaris though, it brings us the opportunity to do more food and beverage-type project-based work as well, because they have the applications expertise and we have the sales teams to be able to combine those strengths. And so we would look to grow our food and beverage business based upon the combination of those two into a broadening product portfolio, if you will.
Brian Drab -- William Blair & Co. -- Analyst
Got it. Okay. Thank you very much.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Brian.
Operator
Our next question is from Dillon Cumming with Morgan Stanley. Your line is open.
Dillon Cumming -- Morgan Stanley -- Analyst
Great. Good morning, guys. Thanks for the question.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Dillon.
Dillon Cumming -- Morgan Stanley -- Analyst
Good morning. Wondering if I can actually just stay on the theme of Solaris for a second. I mean, obviously, not a huge transaction from a revenue perspective, but it does seem like the technology and kind of market advantages were a big focus of the deal. So I guess, just to what extent do you feel like some of the value proposition there was just being able to leverage on the kind of technology advantages that they had within kind of the larger Donaldson platform as you kind of go after these new customers and new end markets?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. A couple of things that they bring to Donaldson Company from a product standpoint of view. So they manufacture bioreactors. So if you don't know, a bioreactor essentially is a piece of equipment that allows you to grow cells or tissues in R&D or manufacturing of biopharmaceutical-type applications, but also food and food additives.
And so when you get into that overlap with our sales force where we have growing momentum within the food and beverage activity, it allows us now to really take our sales team combined with their applications and equipment experience and look to drive into that type of the food and beverage type business as well. But they also brings a foundational filtration capability called tangential flow filtration within biopharmaceuticals and within that whole business process. It's a filtration capability that Donaldson currently does not have. We have overall polymer chemistry-based membranes that we could use, but this is a specific type of application in biopharmaceuticals that allows us now to really step a little deeper into that medical space with the application of that technology, and we'll look to do that.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay. Yeah, that's very interesting. Maybe I'm going to switch over to the guidance for a second. I mean, given the level of top-line outperformance this quarter, it just seems like that might have supported bit of a higher increase I guess in terms of the revenue outlook versus where you revised guidance to. I mean, are you able to say, are you kind of baking in any kind of caution with regards to the supply chain backdrop still or I guess do you feel like you might have visibility into kind of a sharper growth acceleration in the back half of the year that's kind of underwriting that view?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. I mean, we talked about this last quarter and we're trying to take a prudent view toward the overall supply chain difficulties that we face and trying to balance that with our revenue forecast. So we were able to do a bit better in the first quarter, but our costs are also up. So we have to factor in that we have to raise prices a bit more than we originally planned and that also drives revenues up. So it could always be higher. We try to take a reasonable approach. We were at a midpoint of 7.5% and now we're at a midpoint of 10%. We think that's a reasonable place for the company based on where we sit right now.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay. Yeah, that's helpful color, Scott. Thanks. And then maybe just one last one for me. Tod, I think you mentioned the kind of efforts to grow out the venting business for batteries and powertrains in the auto industry. I'm not sure that was meant to be a comment around battery electric powertrains or kind of legacy IC auto. I was just curious if you could kind of provide some more color there? If it was the comment around battery electric, I guess, I'd also be curious to learn about you kind of apply similar technology on batteries, probably Class A or Off-Highway space as well?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. It's really meant to be a statement about our technology and our opportunity for growth that where we feel like we have a very strong technological leadership position within that space that we have brought over from frankly our disk drive-based technologies as well as other foundational technologies invented in our Corporate Technology Group. And we often look to spread those across the technology that we invent, spread those across multiple business units. And in this case, integrated venting solutions is clearly the winner there.
And so we are looking to press hard into the automotive opportunities because we frankly can, and we see a lot of the battery-based automotive space really given us double-digit and above company average growth. And you'll see that we'll expand that business and we'll continue to invest strongly in that business to be able to get that to at least between 3% and 4% of our overall company revenue.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay, great. Thanks for the time guys.
Operator
Our next question is from Rob Mason with Baird. Your line is open.
Robert Mason -- Robert W. Baird & Company -- Analyst
Yes, good morning, and thanks for the question as well. I want to go just a little bit deeper on I guess the first quarter. You did outperform your typical seasonality in the quarter and delivered more revenue. Tod, I was willing to see if you could comment just on how the incoming order rate look? Where your backlog ended up at the end of the quarter versus year end? And just your thoughts on where maybe channel inventories are at this stage as well?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. Incoming order activity remains very strong across the corporation. It's obviously led by the United States across both Industrial and Engine-based businesses all end markets. So very strong in the U.S. I would say it's strong in Latin America, same across both segments. I would say it's strong in Europe across both segments, all end markets. Asia Pacific, I would say it's good across Asia Pacific, but a little bit more troubled in China. So China is the only weak spot in both Engine and Industrial. We have seen a bit of a pullback there. We've baked all of that within the guide.
Our backlog remains very high. Our delinquency rate to our customers remains at an uncomfortable position, a non-Donaldson-like position that we continue to work very hard to improve. And even as we see this higher order level come in, our backlogs are at -- our higher ship levels, our backlogs have not gone down. We do see the typical seasonality that you see in the December timeframe. So nothing out of the ordinary. Nothing suggesting that it's slowing down out there.
Robert Mason -- Robert W. Baird & Company -- Analyst
And so it's fair to infer that your customers really are not restocking. This is almost hand to mouth type deliveries?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. On the inventory restocking question, the supply chains are really causing a more troubled ability for our customers to be able to accomplish restocking. And so consequently, at these high levels, it's still all pull through. And so we've not seen on the independent or the OE channels, the ability of our customers to be able to build that inventory up.
Robert Mason -- Robert W. Baird & Company -- Analyst
Yeah, yeah. Just as a follow-up. I wanted to see if you could provide any color on how the gross margin curve may look as we go through the balance of the year to the extent you expect it to be down 50 to 100 basis points for the full year. Are you comfortable saying that the second quarter could be a trough in the gross margin? Do we go lower and then come back up with some better pricing, better volume leverage in the second half of the year?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So we -- maybe just at a high level, right, if you think about our prior guidance to our current guidance. So we essentially said at the end of last quarter, we thought we had 300 basis points of headwind. And if you go through my comment on the script, we now forecast that to be 500 basis points of headwind. And that's one of the reasons, that's the main reason we took the overall margin guidance from flat to slightly down to down 50 to 100.
So you can see we have additional 200 basis points of headwind, and we won't be able to offset that 100% this fiscal year. We do think over the longer term we'll balance out the price versus cost, and we have to work through that with our customers. But the hardest quarter with the new headwind that we're seeing is the first quarter -- is the next quarter, right? So obviously, as you're raising prices we're chasing the cost going up. So our next quarter will be the heaviest headwind quarter. So I think you're thinking is correct. The biggest challenge will be the next quarter. And then as pricing layers in from what we've done last year and through this quarter and into next quarter, that will help offset the price increases that we're facing.
Robert Mason -- Robert W. Baird & Company -- Analyst
How much within the 50 to 100 basis points down for the year? How much -- we've seen inflation continue up since you guided in September. How much additional inflation is built into that from where we stand today?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So well, I mean, we originally projected the cost we are paying for raw materials for example to be up 8% to 10% and we now project that to be up 12% to 14%. And so that's the additional headwind that we're facing. In addition, we've added 100 basis points of headwind for freight and labor costs. So that's the kind of cost increases that we're experiencing and why we have to continue to raise prices to offset those headwinds.
Robert Mason -- Robert W. Baird & Company -- Analyst
And that assumes -- but that is -- Scott, that assumes some -- the curve continues upward from current spot rates at the high level?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. There is some additional increases expected. I mean, we've -- our procurement staff does an excellent job of assessing all the indexes where we're purchasing and trying to forecast that forward and manage the price increases the best we can. In our. So it's a combination of current prices and expected future prices.
Robert Mason -- Robert W. Baird & Company -- Analyst
Very good. Very good. Thanks for the questions.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thank you, Rob.
Operator
Our next question is from Laurence Alexander with Jefferies. Your line is open.
Daniel Rizzo -- Jefferies LLC -- Analyst
Hey, guys. It's Dan Rizzo on for Laurence. Thank you for taking my question. If we look past to 2022, you mentioned a whole new higher inventory to kind of meet customer needs. And I don't know if this has been asked before, but I was wondering if this is kind of changing the way you think longer term with the amount of inventory that needs to be held given the logistical scenarios we're seeing around the world?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, it's a great question. As we spoke about during the last couple of quarters, we're going to use the strength of our balance sheet and really take our inventory up so that we can look to take care of our customers in the best possible fashion during all of these uncertain times. You see that clearly within our inventory actions, but we do think that this is more of a finding a new normal. And after we get to the new normal, we'll get back to more properly managed inventory levels that we would expect the company to need in order to be able to meet our customer delivery expectation percentages.
So we think this is likely not the new model going forward. In other words, we're not going to drive our overall inventory turns down to very low-single-digits just to hold on. That doesn't make sense. But in this moment of uncertainty, we're just using every strength that the company has to make sure our customers are taken care of.
Daniel Rizzo -- Jefferies LLC -- Analyst
That's very helpful. Then with the price increases, and again, this is just more -- a little more philosophical, are we at the point where customers are kind of trying [Indecipherable] so to speak or I mean you have to raise prices because cost is so high. But are customers starting to push back or is it their demand trend is so much that it's just kind of accepted at this point it will be for the foreseeable future?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
I think we've got the best type of an environment working cooperative environment relative to pricing that I've seen in my entire Donaldson career. I think people get it, they understand this is very unusual, everybody is trying to work hard with each other in order to be able to get through it. Obviously, there is some back and forth with regards to it. But what's really important is you have to move quickly in order to wash out the old prices from your backlogs and get to the new situation, if you will. I think the receptivity is really good. We've had a lot of success. We do have some stubbornness out there, but we're working through that and we'll drive that to ground here in short order.
Daniel Rizzo -- Jefferies LLC -- Analyst
And then finally then, in your history or have you in the past given price concessions through certain times? I guess, will there be a give back if things normalize?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. On some of our longer term contracts, particularly with the OEs, we have annual base price downs. And so we'll start that part of the model in the negative position on an annual basis. Right now, it's a bit different obviously. But then also, if inflation does abate and come -- and let's say they give all of this back down and the indexes for raw materials truly do go down and stay down then sure. It's a matter of competitiveness. And so, yeah, we have done in the past and we would look to do that. The stable type of a environment that you referenced there though is, it's something we look forward to, let's say.
Daniel Rizzo -- Jefferies LLC -- Analyst
Okay. Thank you very much.
Operator
We have no further questions at this time. I'll turn the call back over to you Mr. Carpenter for any closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
I want to wish everyone a happy and safe holiday season. And I look forward to reporting our second quarter results in the New Year. That concludes today's call. Good bye.
Operator
[Operator Closing Remarks]
Duration: 44 minutes
Call participants:
Sarika Dhadwal -- Director of Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Brian Drab -- William Blair & Co. -- Analyst
Dillon Cumming -- Morgan Stanley -- Analyst
Robert Mason -- Robert W. Baird & Company -- Analyst
Daniel Rizzo -- Jefferies LLC -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, inc (NYSE: DCI) Q1 2022 Earnings Call Dec 1, 2021, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Sarika Dhadwal -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Robert Mason -- Robert W. Baird & Company -- Analyst Daniel Rizzo -- Jefferies LLC -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. With that said, we are raising our top and bottom line guidance for fiscal 2022 based on a few factors; first quarter results, higher sales expectations driven in part by incremental pricing and operating expense leverage. | Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Sarika Dhadwal -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Robert Mason -- Robert W. Baird & Company -- Analyst Daniel Rizzo -- Jefferies LLC -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, inc (NYSE: DCI) Q1 2022 Earnings Call Dec 1, 2021, 10:00 a.m. With that said, we are raising our top and bottom line guidance for fiscal 2022 based on a few factors; first quarter results, higher sales expectations driven in part by incremental pricing and operating expense leverage. | Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Sarika Dhadwal -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Robert Mason -- Robert W. Baird & Company -- Analyst Daniel Rizzo -- Jefferies LLC -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, inc (NYSE: DCI) Q1 2022 Earnings Call Dec 1, 2021, 10:00 a.m. With that said, we are raising our top and bottom line guidance for fiscal 2022 based on a few factors; first quarter results, higher sales expectations driven in part by incremental pricing and operating expense leverage. | Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Sarika Dhadwal -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Robert Mason -- Robert W. Baird & Company -- Analyst Daniel Rizzo -- Jefferies LLC -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, inc (NYSE: DCI) Q1 2022 Earnings Call Dec 1, 2021, 10:00 a.m. So our Industrial products operating margin last year was 13.7% and this year it was 16.4%. | 6f009502-f879-4530-a878-6708964b05f0 |
709724.0 | 2021-12-01 00:00:00 UTC | Donaldson Q1 Results Up, Top Estimates; Lifts FY22 View - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-q1-results-up-top-estimates-lifts-fy22-view-quick-facts | nan | nan | (RTTNews) - Donaldson Co., Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its first-quarter net earnings were $77.1 million, an increase of 24.4 percent from $61.9 million in 2021. Earnings per share increased 26.1 percent to $0.61 from prior year's $0.48.
First-quarter 2022 sales increased 19.5 percent to $760.9 million from $636.6 million in 2021.
On average, analysts polled by Thomson Reuters expected earnings of $0.55 per share on sales of $745.38 million. Analysts' estimates typically exclude special items.
Further, the company raised its fiscal 2022 sales and earnings outlook to reflect better than expected sales in the first quarter, combined with the anticipated incremental impact of additional price increases planned for the remainder of the year.
Fiscal 2022 earnings per share is now expected to be between $2.57 and $2.73, versus a previous range of between $2.50 and $2.66. In the prior year, reported and adjusted earnings per share were $2.24 and $2.32, respectively.
Net sales are projected to increase between 8 percent and 12 percent year-over-year, up from previous guidance of an increase of between 5 percent and 10 percent.
Sales growth during the first half of the year is expected to outpace the second half of the year as sequential year-over-year comparisons become more difficult.
Analysts expect earnings of $2.62 per share on sales of $3.1 billion for the full year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Donaldson Co., Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its first-quarter net earnings were $77.1 million, an increase of 24.4 percent from $61.9 million in 2021. On average, analysts polled by Thomson Reuters expected earnings of $0.55 per share on sales of $745.38 million. Further, the company raised its fiscal 2022 sales and earnings outlook to reflect better than expected sales in the first quarter, combined with the anticipated incremental impact of additional price increases planned for the remainder of the year. | (RTTNews) - Donaldson Co., Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its first-quarter net earnings were $77.1 million, an increase of 24.4 percent from $61.9 million in 2021. First-quarter 2022 sales increased 19.5 percent to $760.9 million from $636.6 million in 2021. Net sales are projected to increase between 8 percent and 12 percent year-over-year, up from previous guidance of an increase of between 5 percent and 10 percent. | (RTTNews) - Donaldson Co., Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its first-quarter net earnings were $77.1 million, an increase of 24.4 percent from $61.9 million in 2021. Further, the company raised its fiscal 2022 sales and earnings outlook to reflect better than expected sales in the first quarter, combined with the anticipated incremental impact of additional price increases planned for the remainder of the year. Net sales are projected to increase between 8 percent and 12 percent year-over-year, up from previous guidance of an increase of between 5 percent and 10 percent. | (RTTNews) - Donaldson Co., Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its first-quarter net earnings were $77.1 million, an increase of 24.4 percent from $61.9 million in 2021. Earnings per share increased 26.1 percent to $0.61 from prior year's $0.48. Fiscal 2022 earnings per share is now expected to be between $2.57 and $2.73, versus a previous range of between $2.50 and $2.66. | 6163e2be-219a-401d-bb66-c3d03689882c |
709725.0 | 2021-11-30 00:00:00 UTC | Donaldson Becomes Oversold | DCI | https://www.nasdaq.com/articles/donaldson-becomes-oversold | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of DCI entered into oversold territory, changing hands as low as $56.48 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Donaldson Co. Inc., the RSI reading has hit 29.5 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 39.9. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DCI's recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 1.49% based upon the recent $58.96 share price.
A bullish investor could look at DCI's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at DCI's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of DCI entered into oversold territory, changing hands as low as $56.48 per share. | Indeed, DCI's recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 1.49% based upon the recent $58.96 share price. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of DCI entered into oversold territory, changing hands as low as $56.48 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of DCI entered into oversold territory, changing hands as low as $56.48 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of DCI entered into oversold territory, changing hands as low as $56.48 per share. | 5639393f-285d-493b-afa5-42448182205e |
709726.0 | 2021-11-17 00:00:00 UTC | Analysts Anticipate IVOG Will Reach $240 | DCI | https://www.nasdaq.com/articles/analysts-anticipate-ivog-will-reach-%24240 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P Mid-Cap 400 Growth ETF (Symbol: IVOG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $240.07 per unit.
With IVOG trading at a recent price near $218.51 per unit, that means that analysts see 9.86% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVOG's underlying holdings with notable upside to their analyst target prices are STORE Capital Corp (Symbol: STOR), Donaldson Co. Inc. (Symbol: DCI), and Paylocity Holding Corp (Symbol: PCTY). Although STOR has traded at a recent price of $33.98/share, the average analyst target is 10.08% higher at $37.41/share. Similarly, DCI has 9.99% upside from the recent share price of $62.28 if the average analyst target price of $68.50/share is reached, and analysts on average are expecting PCTY to reach a target price of $292.08/share, which is 9.89% above the recent price of $265.78. Below is a twelve month price history chart comparing the stock performance of STOR, DCI, and PCTY:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard S&P Mid-Cap 400 Growth ETF IVOG $218.51 $240.07 9.86%
STORE Capital Corp STOR $33.98 $37.41 10.08%
Donaldson Co. Inc. DCI $62.28 $68.50 9.99%
Paylocity Holding Corp PCTY $265.78 $292.08 9.89%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Vanguard S&P Mid-Cap 400 Growth ETF IVOG $218.51 $240.07 9.86% STORE Capital Corp STOR $33.98 $37.41 10.08% Donaldson Co. Inc. DCI $62.28 $68.50 9.99% Paylocity Holding Corp PCTY $265.78 $292.08 9.89% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IVOG's underlying holdings with notable upside to their analyst target prices are STORE Capital Corp (Symbol: STOR), Donaldson Co. Inc. (Symbol: DCI), and Paylocity Holding Corp (Symbol: PCTY). Similarly, DCI has 9.99% upside from the recent share price of $62.28 if the average analyst target price of $68.50/share is reached, and analysts on average are expecting PCTY to reach a target price of $292.08/share, which is 9.89% above the recent price of $265.78. | Three of IVOG's underlying holdings with notable upside to their analyst target prices are STORE Capital Corp (Symbol: STOR), Donaldson Co. Inc. (Symbol: DCI), and Paylocity Holding Corp (Symbol: PCTY). Similarly, DCI has 9.99% upside from the recent share price of $62.28 if the average analyst target price of $68.50/share is reached, and analysts on average are expecting PCTY to reach a target price of $292.08/share, which is 9.89% above the recent price of $265.78. Vanguard S&P Mid-Cap 400 Growth ETF IVOG $218.51 $240.07 9.86% STORE Capital Corp STOR $33.98 $37.41 10.08% Donaldson Co. Inc. DCI $62.28 $68.50 9.99% Paylocity Holding Corp PCTY $265.78 $292.08 9.89% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, DCI has 9.99% upside from the recent share price of $62.28 if the average analyst target price of $68.50/share is reached, and analysts on average are expecting PCTY to reach a target price of $292.08/share, which is 9.89% above the recent price of $265.78. Three of IVOG's underlying holdings with notable upside to their analyst target prices are STORE Capital Corp (Symbol: STOR), Donaldson Co. Inc. (Symbol: DCI), and Paylocity Holding Corp (Symbol: PCTY). Below is a twelve month price history chart comparing the stock performance of STOR, DCI, and PCTY: Below is a summary table of the current analyst target prices discussed above: | Vanguard S&P Mid-Cap 400 Growth ETF IVOG $218.51 $240.07 9.86% STORE Capital Corp STOR $33.98 $37.41 10.08% Donaldson Co. Inc. DCI $62.28 $68.50 9.99% Paylocity Holding Corp PCTY $265.78 $292.08 9.89% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IVOG's underlying holdings with notable upside to their analyst target prices are STORE Capital Corp (Symbol: STOR), Donaldson Co. Inc. (Symbol: DCI), and Paylocity Holding Corp (Symbol: PCTY). Similarly, DCI has 9.99% upside from the recent share price of $62.28 if the average analyst target price of $68.50/share is reached, and analysts on average are expecting PCTY to reach a target price of $292.08/share, which is 9.89% above the recent price of $265.78. | 86c555f5-1aa5-4631-8514-17a6ca6b6495 |
709727.0 | 2021-11-12 00:00:00 UTC | Should You Investigate Donaldson Company, Inc. (NYSE:DCI) At US$61.74? | DCI | https://www.nasdaq.com/articles/should-you-investigate-donaldson-company-inc.-nyse%3Adci-at-us%2461.74-2021-11-12 | nan | nan | Donaldson Company, Inc. (NYSE:DCI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$69.09 at one point, and dropping to the lows of US$56.62. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Donaldson Company's current trading price of US$61.74 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Donaldson Company’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Donaldson Company worth?
According to my valuation model, Donaldson Company seems to be fairly priced at around 8.4% below my intrinsic value, which means if you buy Donaldson Company today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $67.42, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Donaldson Company’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Donaldson Company look like?
NYSE:DCI Earnings and Revenue Growth November 12th 2021
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 39% over the next couple of years, the future seems bright for Donaldson Company. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on DCI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Donaldson Company, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Donaldson Company and we think they deserve your attention.
If you are no longer interested in Donaldson Company, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. (NYSE:DCI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$69.09 at one point, and dropping to the lows of US$56.62. NYSE:DCI Earnings and Revenue Growth November 12th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. | Donaldson Company, Inc. (NYSE:DCI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$69.09 at one point, and dropping to the lows of US$56.62. DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. NYSE:DCI Earnings and Revenue Growth November 12th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. | Donaldson Company, Inc. (NYSE:DCI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$69.09 at one point, and dropping to the lows of US$56.62. NYSE:DCI Earnings and Revenue Growth November 12th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. | DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. Donaldson Company, Inc. (NYSE:DCI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$69.09 at one point, and dropping to the lows of US$56.62. NYSE:DCI Earnings and Revenue Growth November 12th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. | 037a1829-f693-4ba5-a401-7cfc7a4f057d |
709728.0 | 2021-11-04 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-11-04 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Essential Utilities Inc (Symbol: WTRG) $47.26 $57.17 20.96%
Atmos Energy Corp. (Symbol: ATO) $93.36 $108.40 16.11%
New Jersey Resources Corp (Symbol: NJR) $38.88 $44.25 13.81%
Donaldson Co. Inc. (Symbol: DCI) $61.11 $68.50 12.09%
Colgate-Palmolive Co. (Symbol: CL) $77.27 $85.00 10.00%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Essential Utilities Inc (Symbol: WTRG) 2.27% 20.96% 23.23%
Atmos Energy Corp. (Symbol: ATO) 2.68% 16.11% 18.79%
New Jersey Resources Corp (Symbol: NJR) 3.73% 13.81% 17.54%
Donaldson Co. Inc. (Symbol: DCI) 1.44% 12.09% 13.53%
Colgate-Palmolive Co. (Symbol: CL) 2.33% 10.00% 12.33%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14%
Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70%
New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38%
Colgate-Palmolive Co. (Symbol: CL) $1.75 $1.79 2.29%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on CL — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Essential Utilities Inc (Symbol: WTRG) $47.26 $57.17 20.96% Atmos Energy Corp. (Symbol: ATO) $93.36 $108.40 16.11% New Jersey Resources Corp (Symbol: NJR) $38.88 $44.25 13.81% Donaldson Co. Inc. (Symbol: DCI) $61.11 $68.50 12.09% Colgate-Palmolive Co. (Symbol: CL) $77.27 $85.00 10.00% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.27% 20.96% 23.23% Atmos Energy Corp. (Symbol: ATO) 2.68% 16.11% 18.79% New Jersey Resources Corp (Symbol: NJR) 3.73% 13.81% 17.54% Donaldson Co. Inc. (Symbol: DCI) 1.44% 12.09% 13.53% Colgate-Palmolive Co. (Symbol: CL) 2.33% 10.00% 12.33% Another consideration with dividend growth stocks is just how much the dividend is growing. | Essential Utilities Inc (Symbol: WTRG) $47.26 $57.17 20.96% Atmos Energy Corp. (Symbol: ATO) $93.36 $108.40 16.11% New Jersey Resources Corp (Symbol: NJR) $38.88 $44.25 13.81% Donaldson Co. Inc. (Symbol: DCI) $61.11 $68.50 12.09% Colgate-Palmolive Co. (Symbol: CL) $77.27 $85.00 10.00% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.27% 20.96% 23.23% Atmos Energy Corp. (Symbol: ATO) 2.68% 16.11% 18.79% New Jersey Resources Corp (Symbol: NJR) 3.73% 13.81% 17.54% Donaldson Co. Inc. (Symbol: DCI) 1.44% 12.09% 13.53% Colgate-Palmolive Co. (Symbol: CL) 2.33% 10.00% 12.33% Another consideration with dividend growth stocks is just how much the dividend is growing. Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70% New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% Colgate-Palmolive Co. (Symbol: CL) $1.75 $1.79 2.29% These five stocks are part of our full Dividend Aristocrats List. | Essential Utilities Inc (Symbol: WTRG) $47.26 $57.17 20.96% Atmos Energy Corp. (Symbol: ATO) $93.36 $108.40 16.11% New Jersey Resources Corp (Symbol: NJR) $38.88 $44.25 13.81% Donaldson Co. Inc. (Symbol: DCI) $61.11 $68.50 12.09% Colgate-Palmolive Co. (Symbol: CL) $77.27 $85.00 10.00% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.27% 20.96% 23.23% Atmos Energy Corp. (Symbol: ATO) 2.68% 16.11% 18.79% New Jersey Resources Corp (Symbol: NJR) 3.73% 13.81% 17.54% Donaldson Co. Inc. (Symbol: DCI) 1.44% 12.09% 13.53% Colgate-Palmolive Co. (Symbol: CL) 2.33% 10.00% 12.33% Another consideration with dividend growth stocks is just how much the dividend is growing. Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70% New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% Colgate-Palmolive Co. (Symbol: CL) $1.75 $1.79 2.29% These five stocks are part of our full Dividend Aristocrats List. | Essential Utilities Inc (Symbol: WTRG) $47.26 $57.17 20.96% Atmos Energy Corp. (Symbol: ATO) $93.36 $108.40 16.11% New Jersey Resources Corp (Symbol: NJR) $38.88 $44.25 13.81% Donaldson Co. Inc. (Symbol: DCI) $61.11 $68.50 12.09% Colgate-Palmolive Co. (Symbol: CL) $77.27 $85.00 10.00% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.27% 20.96% 23.23% Atmos Energy Corp. (Symbol: ATO) 2.68% 16.11% 18.79% New Jersey Resources Corp (Symbol: NJR) 3.73% 13.81% 17.54% Donaldson Co. Inc. (Symbol: DCI) 1.44% 12.09% 13.53% Colgate-Palmolive Co. (Symbol: CL) 2.33% 10.00% 12.33% Another consideration with dividend growth stocks is just how much the dividend is growing. Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70% New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% Colgate-Palmolive Co. (Symbol: CL) $1.75 $1.79 2.29% These five stocks are part of our full Dividend Aristocrats List. | 664de204-c7b8-4835-9dea-dbc802ec6efc |
709729.0 | 2021-10-23 00:00:00 UTC | Calculating The Intrinsic Value Of Donaldson Company, Inc. (NYSE:DCI) | DCI | https://www.nasdaq.com/articles/calculating-the-intrinsic-value-of-donaldson-company-inc.-nyse%3Adci-2021-10-23 | nan | nan | In this article we are going to estimate the intrinsic value of Donaldson Company, Inc. (NYSE:DCI) by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
Crunching the numbers
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
10-year free cash flow (FCF) estimate
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Levered FCF ($, Millions) US$300.6m US$342.0m US$389.1m US$413.3m US$429.0m US$441.8m US$453.7m US$464.9m US$475.6m US$486.1m
Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x2 Analyst x2 Analyst x1 Est @ 2.99% Est @ 2.68% Est @ 2.46% Est @ 2.31% Est @ 2.21%
Present Value ($, Millions) Discounted @ 6.7% US$282 US$300 US$320 US$318 US$310 US$299 US$287 US$276 US$264 US$253
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$2.9b
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 6.7%.
Terminal Value (TV)= FCF2031 × (1 + g) ÷ (r – g) = US$486m× (1 + 2.0%) ÷ (6.7%– 2.0%) = US$10b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$10b÷ ( 1 + 6.7%)10= US$5.4b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$8.3b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$59.8, the company appears about fair value at a 11% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
NYSE:DCI Discounted Cash Flow October 23rd 2021
Important assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Donaldson Company as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.7%, which is based on a levered beta of 1.091. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Moving On:
Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Donaldson Company, we've put together three additional elements you should further research:
Risks: For example, we've discovered 1 warning sign for Donaldson Company that you should be aware of before investing here.
Future Earnings: How does DCI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this article we are going to estimate the intrinsic value of Donaldson Company, Inc. (NYSE:DCI) by taking the expected future cash flows and discounting them to today's value. NYSE:DCI Discounted Cash Flow October 23rd 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Future Earnings: How does DCI's growth rate compare to its peers and the wider market? | In this article we are going to estimate the intrinsic value of Donaldson Company, Inc. (NYSE:DCI) by taking the expected future cash flows and discounting them to today's value. NYSE:DCI Discounted Cash Flow October 23rd 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Future Earnings: How does DCI's growth rate compare to its peers and the wider market? | NYSE:DCI Discounted Cash Flow October 23rd 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. In this article we are going to estimate the intrinsic value of Donaldson Company, Inc. (NYSE:DCI) by taking the expected future cash flows and discounting them to today's value. Future Earnings: How does DCI's growth rate compare to its peers and the wider market? | In this article we are going to estimate the intrinsic value of Donaldson Company, Inc. (NYSE:DCI) by taking the expected future cash flows and discounting them to today's value. NYSE:DCI Discounted Cash Flow October 23rd 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Future Earnings: How does DCI's growth rate compare to its peers and the wider market? | f7130da5-a6aa-4ea9-9552-05db05150d62 |
709730.0 | 2021-10-11 00:00:00 UTC | XMLV's Holdings Imply 12% Gain Potential | DCI | https://www.nasdaq.com/articles/xmlvs-holdings-imply-12-gain-potential-2021-10-11 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P MidCap Low Volatility ETF (Symbol: XMLV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $59.80 per unit.
With XMLV trading at a recent price near $53.44 per unit, that means that analysts see 11.91% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XMLV's underlying holdings with notable upside to their analyst target prices are Casey's General Stores, Inc. (Symbol: CASY), Donaldson Co. Inc. (Symbol: DCI), and Silgan Holdings Inc (Symbol: SLGN). Although CASY has traded at a recent price of $190.45/share, the average analyst target is 18.90% higher at $226.44/share. Similarly, DCI has 18.74% upside from the recent share price of $58.11 if the average analyst target price of $69.00/share is reached, and analysts on average are expecting SLGN to reach a target price of $47.25/share, which is 17.54% above the recent price of $40.20. Below is a twelve month price history chart comparing the stock performance of CASY, DCI, and SLGN:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P MidCap Low Volatility ETF XMLV $53.44 $59.80 11.91%
Casey's General Stores, Inc. CASY $190.45 $226.44 18.90%
Donaldson Co. Inc. DCI $58.11 $69.00 18.74%
Silgan Holdings Inc SLGN $40.20 $47.25 17.54%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco S&P MidCap Low Volatility ETF XMLV $53.44 $59.80 11.91% Casey's General Stores, Inc. CASY $190.45 $226.44 18.90% Donaldson Co. Inc. DCI $58.11 $69.00 18.74% Silgan Holdings Inc SLGN $40.20 $47.25 17.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XMLV's underlying holdings with notable upside to their analyst target prices are Casey's General Stores, Inc. (Symbol: CASY), Donaldson Co. Inc. (Symbol: DCI), and Silgan Holdings Inc (Symbol: SLGN). Similarly, DCI has 18.74% upside from the recent share price of $58.11 if the average analyst target price of $69.00/share is reached, and analysts on average are expecting SLGN to reach a target price of $47.25/share, which is 17.54% above the recent price of $40.20. | Three of XMLV's underlying holdings with notable upside to their analyst target prices are Casey's General Stores, Inc. (Symbol: CASY), Donaldson Co. Inc. (Symbol: DCI), and Silgan Holdings Inc (Symbol: SLGN). Similarly, DCI has 18.74% upside from the recent share price of $58.11 if the average analyst target price of $69.00/share is reached, and analysts on average are expecting SLGN to reach a target price of $47.25/share, which is 17.54% above the recent price of $40.20. Invesco S&P MidCap Low Volatility ETF XMLV $53.44 $59.80 11.91% Casey's General Stores, Inc. CASY $190.45 $226.44 18.90% Donaldson Co. Inc. DCI $58.11 $69.00 18.74% Silgan Holdings Inc SLGN $40.20 $47.25 17.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, DCI has 18.74% upside from the recent share price of $58.11 if the average analyst target price of $69.00/share is reached, and analysts on average are expecting SLGN to reach a target price of $47.25/share, which is 17.54% above the recent price of $40.20. Three of XMLV's underlying holdings with notable upside to their analyst target prices are Casey's General Stores, Inc. (Symbol: CASY), Donaldson Co. Inc. (Symbol: DCI), and Silgan Holdings Inc (Symbol: SLGN). Below is a twelve month price history chart comparing the stock performance of CASY, DCI, and SLGN: Below is a summary table of the current analyst target prices discussed above: | Invesco S&P MidCap Low Volatility ETF XMLV $53.44 $59.80 11.91% Casey's General Stores, Inc. CASY $190.45 $226.44 18.90% Donaldson Co. Inc. DCI $58.11 $69.00 18.74% Silgan Holdings Inc SLGN $40.20 $47.25 17.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XMLV's underlying holdings with notable upside to their analyst target prices are Casey's General Stores, Inc. (Symbol: CASY), Donaldson Co. Inc. (Symbol: DCI), and Silgan Holdings Inc (Symbol: SLGN). Similarly, DCI has 18.74% upside from the recent share price of $58.11 if the average analyst target price of $69.00/share is reached, and analysts on average are expecting SLGN to reach a target price of $47.25/share, which is 17.54% above the recent price of $40.20. | 8bf00ac5-54e7-431e-8369-ebefb1c795cd |
709731.0 | 2021-10-04 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-10-04 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Atmos Energy Corp. (Symbol: ATO) $88.78 $112.80 27.06%
New Jersey Resources Corp (Symbol: NJR) $35.60 $45.00 26.40%
Lancaster Colony Corp (Symbol: LANC) $169.78 $210.00 23.69%
Essential Utilities Inc (Symbol: WTRG) $46.25 $56.60 22.38%
Donaldson Co. Inc. (Symbol: DCI) $58.65 $69.00 17.65%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Atmos Energy Corp. (Symbol: ATO) 2.82% 27.06% 29.88%
New Jersey Resources Corp (Symbol: NJR) 4.07% 26.40% 30.47%
Lancaster Colony Corp (Symbol: LANC) 1.77% 23.69% 25.46%
Essential Utilities Inc (Symbol: WTRG) 2.32% 22.38% 24.7%
Donaldson Co. Inc. (Symbol: DCI) 1.50% 17.65% 19.15%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70%
New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08%
Lancaster Colony Corp (Symbol: LANC) $2.8 $3 7.14%
Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on WTRG — FREE Get the latest Zacks research report on DCI — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Atmos Energy Corp. (Symbol: ATO) $88.78 $112.80 27.06% New Jersey Resources Corp (Symbol: NJR) $35.60 $45.00 26.40% Lancaster Colony Corp (Symbol: LANC) $169.78 $210.00 23.69% Essential Utilities Inc (Symbol: WTRG) $46.25 $56.60 22.38% Donaldson Co. Inc. (Symbol: DCI) $58.65 $69.00 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Atmos Energy Corp. (Symbol: ATO) 2.82% 27.06% 29.88% New Jersey Resources Corp (Symbol: NJR) 4.07% 26.40% 30.47% Lancaster Colony Corp (Symbol: LANC) 1.77% 23.69% 25.46% Essential Utilities Inc (Symbol: WTRG) 2.32% 22.38% 24.7% Donaldson Co. Inc. (Symbol: DCI) 1.50% 17.65% 19.15% Another consideration with dividend growth stocks is just how much the dividend is growing. | Atmos Energy Corp. (Symbol: ATO) $88.78 $112.80 27.06% New Jersey Resources Corp (Symbol: NJR) $35.60 $45.00 26.40% Lancaster Colony Corp (Symbol: LANC) $169.78 $210.00 23.69% Essential Utilities Inc (Symbol: WTRG) $46.25 $56.60 22.38% Donaldson Co. Inc. (Symbol: DCI) $58.65 $69.00 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Atmos Energy Corp. (Symbol: ATO) 2.82% 27.06% 29.88% New Jersey Resources Corp (Symbol: NJR) 4.07% 26.40% 30.47% Lancaster Colony Corp (Symbol: LANC) 1.77% 23.69% 25.46% Essential Utilities Inc (Symbol: WTRG) 2.32% 22.38% 24.7% Donaldson Co. Inc. (Symbol: DCI) 1.50% 17.65% 19.15% Another consideration with dividend growth stocks is just how much the dividend is growing. Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70% New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08% Lancaster Colony Corp (Symbol: LANC) $2.8 $3 7.14% Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% These five stocks are part of our full Dividend Aristocrats List. | Atmos Energy Corp. (Symbol: ATO) $88.78 $112.80 27.06% New Jersey Resources Corp (Symbol: NJR) $35.60 $45.00 26.40% Lancaster Colony Corp (Symbol: LANC) $169.78 $210.00 23.69% Essential Utilities Inc (Symbol: WTRG) $46.25 $56.60 22.38% Donaldson Co. Inc. (Symbol: DCI) $58.65 $69.00 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Atmos Energy Corp. (Symbol: ATO) 2.82% 27.06% 29.88% New Jersey Resources Corp (Symbol: NJR) 4.07% 26.40% 30.47% Lancaster Colony Corp (Symbol: LANC) 1.77% 23.69% 25.46% Essential Utilities Inc (Symbol: WTRG) 2.32% 22.38% 24.7% Donaldson Co. Inc. (Symbol: DCI) 1.50% 17.65% 19.15% Another consideration with dividend growth stocks is just how much the dividend is growing. Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70% New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08% Lancaster Colony Corp (Symbol: LANC) $2.8 $3 7.14% Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% These five stocks are part of our full Dividend Aristocrats List. | Atmos Energy Corp. (Symbol: ATO) $88.78 $112.80 27.06% New Jersey Resources Corp (Symbol: NJR) $35.60 $45.00 26.40% Lancaster Colony Corp (Symbol: LANC) $169.78 $210.00 23.69% Essential Utilities Inc (Symbol: WTRG) $46.25 $56.60 22.38% Donaldson Co. Inc. (Symbol: DCI) $58.65 $69.00 17.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Atmos Energy Corp. (Symbol: ATO) 2.82% 27.06% 29.88% New Jersey Resources Corp (Symbol: NJR) 4.07% 26.40% 30.47% Lancaster Colony Corp (Symbol: LANC) 1.77% 23.69% 25.46% Essential Utilities Inc (Symbol: WTRG) 2.32% 22.38% 24.7% Donaldson Co. Inc. (Symbol: DCI) 1.50% 17.65% 19.15% Another consideration with dividend growth stocks is just how much the dividend is growing. Atmos Energy Corp. (Symbol: ATO) $2.3 $2.5 8.70% New Jersey Resources Corp (Symbol: NJR) $1.272 $1.362 7.08% Lancaster Colony Corp (Symbol: LANC) $2.8 $3 7.14% Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% These five stocks are part of our full Dividend Aristocrats List. | 65023380-e055-4ef8-a604-e3041791ffe5 |
709732.0 | 2021-10-03 00:00:00 UTC | Those who invested in Donaldson Company (NYSE:DCI) five years ago are up 74% | DCI | https://www.nasdaq.com/articles/those-who-invested-in-donaldson-company-nyse%3Adci-five-years-ago-are-up-74-2021-10-03 | nan | nan | When you buy and hold a stock for the long term, you definitely want it to provide a positive return. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Donaldson Company, Inc. (NYSE:DCI) share price is up 61% in the last five years, that's less than the market return. However, more recent buyers should be happy with the increase of 22% over the last year.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, Donaldson Company managed to grow its earnings per share at 10% a year. This EPS growth is remarkably close to the 10% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NYSE:DCI Earnings Per Share Growth October 3rd 2021
We know that Donaldson Company has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Donaldson Company the TSR over the last 5 years was 74%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Donaldson Company provided a TSR of 24% over the last twelve months. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 12% per year over five year. It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand Donaldson Company better, we need to consider many other factors. Take risks, for example - Donaldson Company has 1 warning sign we think you should be aware of.
But note: Donaldson Company may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:DCI Earnings Per Share Growth October 3rd 2021 We know that Donaldson Company has improved its bottom line lately, but is it going to grow revenue? Unfortunately for shareholders, while the Donaldson Company, Inc. (NYSE:DCI) share price is up 61% in the last five years, that's less than the market return. This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained. | Unfortunately for shareholders, while the Donaldson Company, Inc. (NYSE:DCI) share price is up 61% in the last five years, that's less than the market return. NYSE:DCI Earnings Per Share Growth October 3rd 2021 We know that Donaldson Company has improved its bottom line lately, but is it going to grow revenue? Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. | Unfortunately for shareholders, while the Donaldson Company, Inc. (NYSE:DCI) share price is up 61% in the last five years, that's less than the market return. NYSE:DCI Earnings Per Share Growth October 3rd 2021 We know that Donaldson Company has improved its bottom line lately, but is it going to grow revenue? We note that for Donaldson Company the TSR over the last 5 years was 74%, which is better than the share price return mentioned above. | Unfortunately for shareholders, while the Donaldson Company, Inc. (NYSE:DCI) share price is up 61% in the last five years, that's less than the market return. NYSE:DCI Earnings Per Share Growth October 3rd 2021 We know that Donaldson Company has improved its bottom line lately, but is it going to grow revenue? We note that for Donaldson Company the TSR over the last 5 years was 74%, which is better than the share price return mentioned above. | d00b69b1-5f42-4fe7-8e6d-add71c4b8e05 |
709733.0 | 2021-09-13 00:00:00 UTC | Is Now The Time To Put Donaldson Company (NYSE:DCI) On Your Watchlist? | DCI | https://www.nasdaq.com/articles/is-now-the-time-to-put-donaldson-company-nyse%3Adci-on-your-watchlist-2021-09-13 | nan | nan | Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
So if you're like me, you might be more interested in profitable, growing companies, like Donaldson Company (NYSE:DCI). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Donaldson Company's Earnings Per Share Are Growing.
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Donaldson Company has grown EPS by 23% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Donaldson Company reported flat revenue and EBIT margins over the last year. That's not bad, but it doesn't point to ongoing future growth, either.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
NYSE:DCI Earnings and Revenue History September 13th 2021
In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Donaldson Company's forecast profits?
Are Donaldson Company Insiders Aligned With All Shareholders?
Since Donaldson Company has a market capitalization of US$8.6b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Indeed, they hold US$39m worth of its stock. That's a lot of money, and no small incentive to work hard. Even though that's only about 0.5% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. I discovered that the median total compensation for the CEOs of companies like Donaldson Company with market caps between US$4.0b and US$12b is about US$6.4m.
Donaldson Company offered total compensation worth US$5.5m to its CEO in the year to . That seems pretty reasonable, especially given its below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
Is Donaldson Company Worth Keeping An Eye On?
You can't deny that Donaldson Company has grown its earnings per share at a very impressive rate. That's attractive. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the takeaway for me is that Donaldson Company is worth keeping an eye on. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Donaldson Company , and understanding this should be part of your investment process.
Although Donaldson Company certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So if you're like me, you might be more interested in profitable, growing companies, like Donaldson Company (NYSE:DCI). NYSE:DCI Earnings and Revenue History September 13th 2021 In investing, as in life, the future matters more than the past. It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. | So if you're like me, you might be more interested in profitable, growing companies, like Donaldson Company (NYSE:DCI). NYSE:DCI Earnings and Revenue History September 13th 2021 In investing, as in life, the future matters more than the past. I discovered that the median total compensation for the CEOs of companies like Donaldson Company with market caps between US$4.0b and US$12b is about US$6.4m. | So if you're like me, you might be more interested in profitable, growing companies, like Donaldson Company (NYSE:DCI). NYSE:DCI Earnings and Revenue History September 13th 2021 In investing, as in life, the future matters more than the past. I discovered that the median total compensation for the CEOs of companies like Donaldson Company with market caps between US$4.0b and US$12b is about US$6.4m. | So if you're like me, you might be more interested in profitable, growing companies, like Donaldson Company (NYSE:DCI). NYSE:DCI Earnings and Revenue History September 13th 2021 In investing, as in life, the future matters more than the past. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. | d831ac14-fceb-46bb-840a-3dc90f66bd01 |
709734.0 | 2021-09-08 00:00:00 UTC | Sum Up The Parts: FXR Could Be Worth $66 | DCI | https://www.nasdaq.com/articles/sum-up-the-parts%3A-fxr-could-be-worth-%2466-2021-09-08 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Industrials/Producer Durables AlphaDEX Fund ETF (Symbol: FXR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $66.44 per unit.
With FXR trading at a recent price near $60.45 per unit, that means that analysts see 9.90% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FXR's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), Silgan Holdings Inc (Symbol: SLGN), and Norfolk Southern Corp (Symbol: NSC). Although DCI has traded at a recent price of $60.83/share, the average analyst target is 11.38% higher at $67.75/share. Similarly, SLGN has 11.11% upside from the recent share price of $41.67 if the average analyst target price of $46.30/share is reached, and analysts on average are expecting NSC to reach a target price of $274.89/share, which is 10.77% above the recent price of $248.15. Below is a twelve month price history chart comparing the stock performance of DCI, SLGN, and NSC:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $60.45 $66.44 9.90%
Donaldson Co. Inc. DCI $60.83 $67.75 11.38%
Silgan Holdings Inc SLGN $41.67 $46.30 11.11%
Norfolk Southern Corp NSC $248.15 $274.89 10.77%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although DCI has traded at a recent price of $60.83/share, the average analyst target is 11.38% higher at $67.75/share. First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $60.45 $66.44 9.90% Donaldson Co. Inc. DCI $60.83 $67.75 11.38% Silgan Holdings Inc SLGN $41.67 $46.30 11.11% Norfolk Southern Corp NSC $248.15 $274.89 10.77% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FXR's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), Silgan Holdings Inc (Symbol: SLGN), and Norfolk Southern Corp (Symbol: NSC). | Three of FXR's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), Silgan Holdings Inc (Symbol: SLGN), and Norfolk Southern Corp (Symbol: NSC). First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $60.45 $66.44 9.90% Donaldson Co. Inc. DCI $60.83 $67.75 11.38% Silgan Holdings Inc SLGN $41.67 $46.30 11.11% Norfolk Southern Corp NSC $248.15 $274.89 10.77% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although DCI has traded at a recent price of $60.83/share, the average analyst target is 11.38% higher at $67.75/share. | Three of FXR's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), Silgan Holdings Inc (Symbol: SLGN), and Norfolk Southern Corp (Symbol: NSC). Although DCI has traded at a recent price of $60.83/share, the average analyst target is 11.38% higher at $67.75/share. Below is a twelve month price history chart comparing the stock performance of DCI, SLGN, and NSC: Below is a summary table of the current analyst target prices discussed above: | First Trust Industrials/Producer Durables AlphaDEX Fund ETF FXR $60.45 $66.44 9.90% Donaldson Co. Inc. DCI $60.83 $67.75 11.38% Silgan Holdings Inc SLGN $41.67 $46.30 11.11% Norfolk Southern Corp NSC $248.15 $274.89 10.77% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FXR's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), Silgan Holdings Inc (Symbol: SLGN), and Norfolk Southern Corp (Symbol: NSC). Although DCI has traded at a recent price of $60.83/share, the average analyst target is 11.38% higher at $67.75/share. | bdb99d9d-7d06-46d3-b721-0490bc1d622e |
709735.0 | 2021-09-07 00:00:00 UTC | DCI Crosses Below Key Moving Average Level | DCI | https://www.nasdaq.com/articles/dci-crosses-below-key-moving-average-level-2021-09-07 | nan | nan | In trading on Tuesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $61.23, changing hands as low as $60.84 per share. Donaldson Co. Inc. shares are currently trading down about 1.5% on the day. The chart below shows the one year performance of DCI shares, versus its 200 day moving average:
Looking at the chart above, DCI's low point in its 52 week range is $45.21 per share, with $69.35 as the 52 week high point — that compares with a last trade of $61.10.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $61.23, changing hands as low as $60.84 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.21 per share, with $69.35 as the 52 week high point — that compares with a last trade of $61.10. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $61.23, changing hands as low as $60.84 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.21 per share, with $69.35 as the 52 week high point — that compares with a last trade of $61.10. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $61.23, changing hands as low as $60.84 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.21 per share, with $69.35 as the 52 week high point — that compares with a last trade of $61.10. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $61.23, changing hands as low as $60.84 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.21 per share, with $69.35 as the 52 week high point — that compares with a last trade of $61.10. Donaldson Co. Inc. shares are currently trading down about 1.5% on the day. | 1fb21346-88df-4588-a42a-bf8e0ef88042 |
709736.0 | 2021-09-03 00:00:00 UTC | Donaldson is Oversold | DCI | https://www.nasdaq.com/articles/donaldson-is-oversold-2021-09-03 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DCI entered into oversold territory, changing hands as low as $62.44 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Donaldson Co. Inc., the RSI reading has hit 28.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.9. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DCI's recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 1.37% based upon the recent $64.22 share price.
A bullish investor could look at DCI's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at DCI's 28.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DCI entered into oversold territory, changing hands as low as $62.44 per share. | Indeed, DCI's recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 1.37% based upon the recent $64.22 share price. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DCI entered into oversold territory, changing hands as low as $62.44 per share. | Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DCI entered into oversold territory, changing hands as low as $62.44 per share. Indeed, DCI's recent annualized dividend of 0.88/share (currently paid in quarterly installments) works out to an annual yield of 1.37% based upon the recent $64.22 share price. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of DCI entered into oversold territory, changing hands as low as $62.44 per share. | 8abe59fe-17ad-470f-b172-8651744b4195 |
709737.0 | 2021-09-03 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-09-03 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Essential Utilities Inc (Symbol: WTRG) $50.37 $54.67 8.53%
McDonald's Corp (Symbol: MCD) $239.87 $258.52 7.78%
Hormel Foods Corp. (Symbol: HRL) $43.57 $46.75 7.30%
Donaldson Co. Inc. (Symbol: DCI) $64.22 $68.75 7.05%
Procter & Gamble Company (Symbol: PG) $143.95 $153.00 6.29%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Essential Utilities Inc (Symbol: WTRG) 2.13% 8.53% 10.66%
McDonald's Corp (Symbol: MCD) 2.15% 7.78% 9.93%
Hormel Foods Corp. (Symbol: HRL) 2.25% 7.30% 9.55%
Donaldson Co. Inc. (Symbol: DCI) 1.37% 7.05% 8.42%
Procter & Gamble Company (Symbol: PG) 2.42% 6.29% 8.71%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14%
McDonald's Corp (Symbol: MCD) $5 $5.16 3.20%
Hormel Foods Corp. (Symbol: HRL) $0.909 $0.968 6.49%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38%
Procter & Gamble Company (Symbol: PG) $3.074 $3.322 8.07%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on PG — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Essential Utilities Inc (Symbol: WTRG) $50.37 $54.67 8.53% McDonald's Corp (Symbol: MCD) $239.87 $258.52 7.78% Hormel Foods Corp. (Symbol: HRL) $43.57 $46.75 7.30% Donaldson Co. Inc. (Symbol: DCI) $64.22 $68.75 7.05% Procter & Gamble Company (Symbol: PG) $143.95 $153.00 6.29% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.13% 8.53% 10.66% McDonald's Corp (Symbol: MCD) 2.15% 7.78% 9.93% Hormel Foods Corp. (Symbol: HRL) 2.25% 7.30% 9.55% Donaldson Co. Inc. (Symbol: DCI) 1.37% 7.05% 8.42% Procter & Gamble Company (Symbol: PG) 2.42% 6.29% 8.71% Another consideration with dividend growth stocks is just how much the dividend is growing. | Essential Utilities Inc (Symbol: WTRG) $50.37 $54.67 8.53% McDonald's Corp (Symbol: MCD) $239.87 $258.52 7.78% Hormel Foods Corp. (Symbol: HRL) $43.57 $46.75 7.30% Donaldson Co. Inc. (Symbol: DCI) $64.22 $68.75 7.05% Procter & Gamble Company (Symbol: PG) $143.95 $153.00 6.29% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.13% 8.53% 10.66% McDonald's Corp (Symbol: MCD) 2.15% 7.78% 9.93% Hormel Foods Corp. (Symbol: HRL) 2.25% 7.30% 9.55% Donaldson Co. Inc. (Symbol: DCI) 1.37% 7.05% 8.42% Procter & Gamble Company (Symbol: PG) 2.42% 6.29% 8.71% Another consideration with dividend growth stocks is just how much the dividend is growing. Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% McDonald's Corp (Symbol: MCD) $5 $5.16 3.20% Hormel Foods Corp. (Symbol: HRL) $0.909 $0.968 6.49% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% Procter & Gamble Company (Symbol: PG) $3.074 $3.322 8.07% These five stocks are part of our full Dividend Aristocrats List. | Essential Utilities Inc (Symbol: WTRG) $50.37 $54.67 8.53% McDonald's Corp (Symbol: MCD) $239.87 $258.52 7.78% Hormel Foods Corp. (Symbol: HRL) $43.57 $46.75 7.30% Donaldson Co. Inc. (Symbol: DCI) $64.22 $68.75 7.05% Procter & Gamble Company (Symbol: PG) $143.95 $153.00 6.29% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.13% 8.53% 10.66% McDonald's Corp (Symbol: MCD) 2.15% 7.78% 9.93% Hormel Foods Corp. (Symbol: HRL) 2.25% 7.30% 9.55% Donaldson Co. Inc. (Symbol: DCI) 1.37% 7.05% 8.42% Procter & Gamble Company (Symbol: PG) 2.42% 6.29% 8.71% Another consideration with dividend growth stocks is just how much the dividend is growing. Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% McDonald's Corp (Symbol: MCD) $5 $5.16 3.20% Hormel Foods Corp. (Symbol: HRL) $0.909 $0.968 6.49% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% Procter & Gamble Company (Symbol: PG) $3.074 $3.322 8.07% These five stocks are part of our full Dividend Aristocrats List. | Essential Utilities Inc (Symbol: WTRG) $50.37 $54.67 8.53% McDonald's Corp (Symbol: MCD) $239.87 $258.52 7.78% Hormel Foods Corp. (Symbol: HRL) $43.57 $46.75 7.30% Donaldson Co. Inc. (Symbol: DCI) $64.22 $68.75 7.05% Procter & Gamble Company (Symbol: PG) $143.95 $153.00 6.29% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Essential Utilities Inc (Symbol: WTRG) 2.13% 8.53% 10.66% McDonald's Corp (Symbol: MCD) 2.15% 7.78% 9.93% Hormel Foods Corp. (Symbol: HRL) 2.25% 7.30% 9.55% Donaldson Co. Inc. (Symbol: DCI) 1.37% 7.05% 8.42% Procter & Gamble Company (Symbol: PG) 2.42% 6.29% 8.71% Another consideration with dividend growth stocks is just how much the dividend is growing. Essential Utilities Inc (Symbol: WTRG) $0.953 $1.021 7.14% McDonald's Corp (Symbol: MCD) $5 $5.16 3.20% Hormel Foods Corp. (Symbol: HRL) $0.909 $0.968 6.49% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.86 2.38% Procter & Gamble Company (Symbol: PG) $3.074 $3.322 8.07% These five stocks are part of our full Dividend Aristocrats List. | 1257312b-0fa6-41bb-84d6-ab04bf6eadd9 |
709738.0 | 2021-09-02 00:00:00 UTC | Donaldson Company, inc (DCI) Q4 2021 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-company-inc-dci-q4-2021-earnings-call-transcript-2021-09-02 | nan | nan | Image source: The Motley Fool.
Donaldson Company, inc (NYSE: DCI)
Q4 2021 Earnings Call
Sep 2, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day and thank you for standing by. Welcome to the Donaldson's Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Charley Brady, Director of Investor Relations. Please go ahead.
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Charley Brady -- Investor Relations
Good morning. Thank you for joining Donaldson's fourth quarter and full year 2021earnings conference call With me today are Tod Carpenter, Chairman, CEO and President and Scott Robinson, Chief Financial Officer. This morning Tod and Scott will provide a summary of our fourth quarter performance and the key considerations for our fiscal 2022 outlook.
During today's call we will reference non-GAAP metrics. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, everyone. We had an excellent finish to a strong year. We achieved another quarterly sales record and EPS was up 32% in fourth quarter, resulting in full year sales and EPS that were both near the high end of our guidance ranges. Our team did an incredible job over the past 12 months and I want to thank them for their contributions.
As we look ahead, conditions will likely become more challenging, particularly in the first half of fiscal '22. We are already facing supply chain disruptions primarily due to labor shortages in the Americas and raw materials inflation puts significant pressure on gross margin. While the magnitude of these issues are greater than what we have experienced in recent years, our playbook for addressing them is time-tested.
We are pursuing growth opportunities in our Advance and Accelerate businesses, we are raising prices to mitigate the impact of cost increases and we are leveraging our strong relationships to remediate and overcome the current supply chain challenges. When we roll these things together, we feel good about where we land. Our plan reflects continued progress on our strategic initiatives and we expect to deliver record levels of sales and record profit in fiscal '22. We will share more details about that later in the call. So I will now provide some context on fourth quarter sales.
Total sales were $773 million, which is up 25% from last year as we compare it against the toughest patch from the pandemic. If you normalize the trend with a two-year stack comparison, fourth quarter is right in line with what we had in the third quarter, suggesting we are maintaining sales momentum. In Engine, total sales were up 28% and the increase was again led by our first-fit businesses.
Fourth quarter sales in Off-Road were up 58%, including about 15 points of growth from Exhaust and Emissions. We won a significant amount of new business over the past few years in anticipation of a new emission standard in Europe. These programs were slower to launch due in part to COVID and we are now seeing a dramatic ramp-up in demand. It is worth noting, these sales create mix pressure for us. We are enhancing the Exhaust and Emissions cost structure to reduce the impact on margin, but based on the nature of this business that will only get us part of the way. I want to thank the operations and business teams for doing an excellent job balancing the needs of improving profitability, while managing through a massive amount of new demand.
Staying with Off-Road, we continue to have strong growth in our innovative razor to sell razor blade products. These products make up about one-third of Off-Road filter sales and they grew substantially faster than their non-proprietary counterparts in fourth quarter. This trend continues to reinforce that our strategy is working. We develop value-added products that drive aftermarket retention for our customers and us.
We are experiencing similar trends in On-Road. Fourth quarter sales were up 36% from prior year and innovative products, which make up nearly half the business, grew twice as fast as the non-proprietary counterparts.
In the US, fourth quarter On-Road sales continued to benefit from higher Class 8 truck production and there was also an impact from a strategic choice we made. During the quarter, we stopped selling some directed-buy equipment to a large OEM customer. If we adjust our current and prior-year sales to exclude these products, the like-for-like growth in the US is about 35% and we are left with a more profitable business that allows us to focus on what we do best, technology-led filtration. I also want to call out Latin America where fourth-quarter sales of On-Road tripled versus the year ago. The growth was from large OEM customers in Brazil. And although it is exciting to see the sharp growth, I want to note that is on a very small base.
In Engine aftermarket sales were up almost 26%. In fact, fourth quarter sales of $376 million were the highest ever, beating the record we set last quarter. Supplier constraints are one of the more challenging parts of the aftermarket business right now and those issues seem to be more severe in the Americas. Despite that pressure, independent channel sales grew in the high 20% range and fourth-quarter sales in the aftermarket OE channel were up in the low 20% range.
Innovative products remain a strong contributor to growth in aftermarket. These razor blade products accounted for more than a quarter of total aftermarket sales and they grew in the mid 20% range during fourth quarter.
I would be remiss if I did not mention PowerCore. We launched the brand almost 20 years ago and sales of these products have grown every year since at least 2010. We finished fiscal '21 at another record and we anticipate a long runway for continued growth. We are compounding aftermarket growth with share gains in less-developed markets like Latin America, Russia and South Africa. These were some of our fastest-growing markets and we believe our strong distribution and comprehensive product offering position us for long-term success in these regions.
In Aerospace and Defense fourth quarter sales declined 8%. Commercial aerospace remains under pressure from the pandemic, particularly in Europe. That decrease was partially offset by higher sales of ground defense equipment. As always Aerospace and Defense sales can be lumpy quarter to quarter, but we are optimistic about returning to growth in the new fiscal year.
Before turning to the Industrial segment, I want to make a point about our Engine business in China. One year ago, Engine sales in China were up almost 25%, while the rest of the region suffered through the pandemic. Fourth quarter Engine sales were up again this year by about 2%. The strategy in China continues to do well as we win new programs with local manufacturers, but it's the one place in the world where we face the tough comparison from last year, so I wanted to point that out.
The Industrial segment also had a solid quarter with total sales growing 19.5%. Sales in Industrial Filtration Solutions, or IFS, were up more than 23% in fourth quarter, reflecting strong growth in new equipment and replacement parts. New equipment makes up nearly half of IFS sales and these products grew in the mid-teens last quarter, which builds on the recovery that began six months ago. There is still a cautious tone in the market, but we see some signs of improvement and our order intake trends add to our confidence.
The replacement parts of dust collection are a more optimistic story with fourth quarter sales up nearly 40%. Activity continues to accelerate factories and we continue to gain share with our proprietary dust collection products. Another growth engine within IFs is Process Filtration, which serves the food and beverage market. Fourth quarter sales were up almost 20%, reflecting growth in new equipment and replacement parts. The market opportunity for Process Filtration is fantastic and new high-growth areas like plant-based food and beverages only increase our opportunities. Consequently, we will continue to expand the team and look for another year of strong growth in fiscal '22.
Sales of Special Applications grew 27% in fourth quarter with strong contributions from both Disk Drive and Venting Solutions. Disk Drive benefited from timing and Venting Solutions continued to make ground with automotive customers. Fourth quarter sales of venting products grew 50% with almost two-thirds of the increase coming from Asia-Pacific. With our high-tech powertrain and battery vents, we are winning new programs and expanding with existing customers across the world, resulting in another year of growth for Venting Solutions.
Fourth quarter sales of Gas Turbine Systems, or GTS, were down 11%. The decline came from the US, which is typically our largest GTS market as sales to small turbines were under pressure. We continue to operate this business with discipline. So our focus in GTS remains squarely on growing replacement parts, while being selective in which new turbine projects we pursue. Overall, the theme of discipline comes into everything we do and that gave us a significant advantage during the pandemic.
We achieved record sales in each of the last two quarters and our full year EPS is an all-time high. We did that work safely. We focused on our people. We implemented protocols that made sense based on local conditions and our employees acted as one team to deliver outstanding results. We plan to follow that up with another year of record sales and record profit in fiscal '22 and I'm excited about what we can accomplish.
Now I will turn the call to Scott for his update. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Tod. Good morning, everyone. Every way you look at it, fiscal '21 was a solid year. We generated strong sales despite the pandemic hanging over us and margin growth contributed to record full year EPS. What was more impressive was how our people operated. The level of teamwork was unbelievable and I am inspired by the commitment they showed. I want to thank my colleagues around the world for all they did in fiscal '21 and for putting us in an excellent position to deliver record sales and profit in fiscal '22.
Before getting to the details of the new year, let me share some 2021 highlights. Fourth quarter sales grew 25%, operating income was up 36% and EPS of $0.66 was 32% above the prior year. As I know you've heard me say, we are committed to increasing levels of profitability on increasing sales and we did that in 2021. I want to add a short disclaimer that commitment is over time and it won't be easy to achieve in the first half of fiscal '22. I'll touch on that in a few minutes.
So back to the fourth quarter recap. Fourth quarter operating margin was 14.5%, an increase of 110 basis points from the prior year. Most of the increase was from gross margin, which grew 70 basis points to 34.4%. Strong volume leverage and initial pricing benefits more than offset the impact from higher raw material costs and mix headwinds. The impact from raw materials increased throughout the quarter, as inflation has begun coming through in full force. We were in front of this impact of price increases in certain businesses, while increases in areas with supply agreements that had index clauses tend to lag the market. That's true when prices go up or down so it works out over time.
Leverage and pricing also accounted for higher fourth quarter gross margin in both segments. However, challenges from inflation and an unfavorable mix will likely be the themes in fiscal '22. Operating expenses at a rate of sales was favorable at 40 basis points driven primarily by volume leverage. That was true in both segments with industrial gaining a lot of improvement from leverage. The strong volume leverage was partially offset by higher incentive compensation due in part to a soft comparison last year and incremental investments in our strategic growth priorities, which will continue in fiscal '22. I also want to touch on corporate and unallocated line in our segment reporting. The fourth quarter increase of almost $10 million reflects a couple of factors [Indecipherable] expense, which includes additional incentive compensation and higher benefit costs and a much easier comparison in the prior year.
Moving down the P&L, fourth quarter other income was $5 million. While the amount itself is not material, I bring it up because we ended the year above our guidance. So in case there are questions, the favorability reflects a handful of non-recurring items including a tax settlement in Brazil and lower loss on foreign exchange. In terms of our other financial metrics, fourth quarter was in line with expectations. Therefore, our full year interest expense and tax rate were both consistent with guidance.
Fiscal '21 capital expenditures were also in line with our forecast and way down from 2020 as we took a planned pause following the investment cycle over the past three years. We directed about $0.25 billion to shareholders in fiscal '21. We repurchased 1.9% of our outstanding shares for $142 million and we paid dividend of $107 million, including the 5% increase we announced earlier this year. We are on pace for more than 25 years in a row of annual dividend increases, which is a trend we are extremely proud of. I also want to highlight the fiscal '21 adjusted cash conversion of 116%. Our DSO and DPO metrics were both favorable versus the prior year. Inventory churns improved and capex was down. While strong net income obviously helped our cash conversion, I am pleased with the way we managed our balance sheet.
We continue to have the flexibility we need to invest in our strategic priorities, including organic and inorganic growth. That's the setup for fiscal '22. We begin the year on solid ground and we are well positioned to deliver our objectives. Before getting into the details, I want to acknowledge that there is still a lot of economic uncertainty and high variability across our end markets and geographies. Based on that we use wide ranges for total and segment-level guidance to reflect the realities. Of course, we will tighten things up as the year progresses.
With that, fiscal '22 sales are expected to grow between 5% and 10% with currency translation being negligible. Engine is also planned to up between 5% and 10% and Industrial is a bit higher at 6% to 11%. Within Engine, sales of our first-fit businesses are expected to remain healthy, particularly in the first half of the year. Fiscal '22 On-Road sales are planned up in the low single digits, while Off-Road sales are projected up in the low double digits. The Off-Road first-fit growth also includes benefits from new programs in Exhaust and Emissions, which gives us top line leverage and gross margin mix headwinds.
For Engine aftermarket, we expect full year sales growth in the mid-single digits with equipment utilization being complemented by share gains from our innovative products and under-penetrated markets. We anticipate low double-digit growth in Aerospace and Defense due in large part to comparing against the challenges of fiscal '21.
Sales of Industrial Filtration Solutions are firm [Phonetic] up in the low double digit range, reflecting a few things. We expect a rebound in sales of new equipment, particularly for dust collection and continued growth in dust collection replacement parts. We also expect another year of strong growth in process filtration, which reflects benefits from further investments to expand the team. Fiscal '22 sales in GTS are planned up in the high single digits, while sales of Special Applications are planned down in the low single digits. Within Special Applications, we expect lower sales of disk drive filters to be partially offset by growth in Venting Solutions.
In terms of operating margin, we expect a full year rate between 14.1% and 14.7%. This range implies an increase of 10 basis points to 70 basis points from the fiscal '21 adjusted operating margin and we expect the improvement to come from expense leverage.
Gross margin is expected to be flat to slightly down from the prior year with raw materials being the single biggest headwind. At today's prices, we expect to pay 8% to 10% more for our raw materials this year and that translates to a gross margin impact of nearly three full points in fiscal '22 margin. There is still a lot of variability and where prices have come down some, it is only a modest change relatively to the massive run-up over the past few months. So we do not yet have signs of meaningful release.
And one final dynamic to keep in mind is that we had raw materials favorability during the first half of fiscal '21. Consequently, we expect substantial pressure on our first-half gross margin and then moderating pressure as the timing of our price increases roll in and catch up to the current market pricing. Importantly, we have already taken action to limit the impact. We implemented several off cycle pricing actions over the past few months and we have more plan for this fiscal year, but those will take time to roll in.
As benefits from pricing compound and costs stabilize, we anticipate gross margin in the second half of fiscal '22 should be up versus '21. Restructuring action we initiated in fiscal '21 will help reduce the impact a bit. We continue to expect annualized savings of about $8 million, with about $5 million to $6 million landing in fiscal '22. A large portion of these savings benefit operating expense and there are a handful of other puts and takes we considered in our operating expense budget.
For example, we anticipate savings from incentive compensation as we reset our annual bonus plans and we expect to increase travel and expense as the pandemic-related restrictions subside and we get back to visiting customers. We are also making incremental investments in our Advance and Accelerate businesses, including another 10% increase in research and development spending. Altogether, we expect total operating expenses will be up from the prior year, but to a lesser extent than sales, resulting in net leverage that drives year-over-year growth in operating margin.
In terms of other key financial metrics, fiscal '22 interest expense is planned to be about $14 million, other income is projected between $7 million and $11 million and the tax rate is expected between 24% and 26%. Capital expenditures are planned up in fiscal '22 with a full-year estimate of $100 million to $120 million. We are expanding PowerCore capacity, primarily in North America and [Indecipherable] with our new programs and cost reduction initiatives. At the same time, we will further optimize and leverage the investments we made a few years ago with the goal of growing ROI again this year.
Additionally, we expect to repurchase about 2% of our shares in fiscal '22, keeping with our multi-decade trend and reaffirming our commitment to shareholders. Finally, we will maintain a strong balance sheet to allow us to act on any acquisition opportunities in the life sciences space.
Based on these forecasts, we plan for a new EPS record between $2.50 and $2.66 and implying an increase from last year's adjusted EPS of 8% to 15%. To help with modeling, I want to also offer a few comments about the anticipated cadence of results in fiscal '22. It's actually pretty straightforward. The first half has an easier sales comparison, meaning we plan for more of our full year increase to come from the first half than the second. The reverse is true for operating margin. As I said a moment ago, gross margin will be under substantial pressure in the first half. While we pursue expense leverage all year, it won't be enough in the first half. Then as things normalize and pricing takes hold, operating margin should be up year-over-year in the second half.
Overall, our Company has a long history of solid expense management and we have responsible leaders across the world that will invest where appropriate. What we need to do is achieve pricing and that takes a global coordinated response. We talked about it a lot during our planning process and I know every level of the organization is committed to protecting gross margin and delivering another year of strong profit improvement. I think we are in an excellent position to deliver on our strategic and financial goals in fiscal '22 due to the dedicated employees around the world. To all my Donaldson colleagues, I want to thank you again for a great year and your continued commitment to our long-term success.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. While there is a lot to consider in our fiscal '22 plan, our priorities are straightforward, gain share and outperform our markets, protect gross margin, deliver best-in-class levels of service and continue to invest in our team and Company culture. Let me share a few of the ways we are attacking these priorities.
The best tactic for growing our share is continued investment in our Advance and Accelerate portfolio. We are adding staff and developing tools to help these teams deliver strong growth again in fiscal '22. Areas like Process Filtration, dust collection replacement parts and Engine Aftermarket are all positioned to have another very successful year.
We will also drive above-market growth by capitalizing on the market recovery related to new equipment. We seek opportunities to plan first-fit seeds in both segments from Engine products to new industrial equipment and we must take advantage of this moment to capture future aftermarket growth. We have a strong value proposition for every customer and this year we have aggressive plans to get back into the field and drive selling.
Additionally, we remain committed to growth through acquisitions. We continue to work a robust pipeline of potential targets with the primary focus on expanding into life sciences and supporting our Industrial segment growth. While there is no update to share today, I'm confident that our strong balance sheet, laser focus and disciplined adherence to our long-term strategy gives us an excellent opportunity for success.
Another priority of fiscal '22 is protecting our gross margin. At our Investor Day two years ago, we talked about our plans to improve gross margin. Since then we have executed. Compared with fiscal '19, fiscal '21 sales are about flat and gross margin is up 90 basis points. We acted with speed and fiscal '22 will be no different. We proactively took price increases when we saw early signs of inflation and we planned for additional increases to catch up with the massive acceleration we saw in raw material costs. Given the magnitude of the incremental headwind, especially in the first half of fiscal '22, we will stay vigilant and continue to pursue margin-accretive price and cost reduction opportunities. We are also closely monitoring our supply chain to improve the situation.
With labor shortages now superseding raw materials availability as a top concern, our global operations team is having to adapt quickly. With our global footprint and strong relationships with customers and suppliers, I'm confident we will navigate the situation and deliver the best-in-class service Donaldson is known for.
Finally, we will continue to invest in our team as part of our multi-year journey to further strengthen our human resources processes. This year our focus is on global alignment around career, planning and development. We are also expanding our diversity, equity and inclusion efforts, which will be part of how we continue to build out and strengthen our ESG program.
We turned 106 years old this year. So we clearly value long-term thinking. Our investments in supporting our team and embracing the positive changes in society are critical parts of how we will succeed in advancing filtration for a cleaner world.
As I close, I want to again acknowledge our Donaldson employees. I've been with the Company for 25 years and this team continues to find new ways to impress me. Thank you all for what you accomplished in fiscal '21 and I'm looking forward to another great year in fiscal '22.
Now I'll turn the call back to the operator to open the line for questions.
Questions and Answers:
Operator
[Operator Instructions] Your first question comes from the line of Bryan Blair with Oppenheimer.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Thanks. Good morning, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Bryan.
Bryan Blair -- Oppenheimer & Co. -- Analyst
I was hoping you could frame run rate demand versus pre-pandemic levels a bit more. Total 4Q sales were up a little over 6% versus fiscal '19, although, I suspect supply chain constraints may be masking some underlying strength beyond that level. Can you offer a little more color on backlog, order rates or any other metrics we should keep in mind versus pre-pandemic rate?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. This is Tod. So if you take a look at our backlog, our backlog is obviously very high, higher than, frankly, we would like to see it. And it really reflects the difficulties across the supply chain, primarily a US-based story. It's very difficult right now to get steel and European-based products. And so given the guide that we have, we have baked that consideration in.
Additionally, we are really under pressure now to get employees hired in the United States in order to be able to build off the backlog. That said, other parts of the world are really uneven as a result of COVID. And so what we have tried to do is recognize and embrace those difficulties and we have put that into our guidance.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Helpful color. And in terms of your guide, top line dynamics certainly makes sense, particularly first versus second half in Engine and we'll see how the next couple of quarters shake out overall. Is there any more detail you can offer on segment margin outlook and how understood price cost, headwinds and some potentially unique mix impacts are likely to flow through from here [Phonetic]?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. Hey, Bryan. Good morning. It's Scott here. So -- I mean, we were obviously pleased with the margin performance of both segments this year. We had good volume growth and good pricing and good leverage. And next year, we see headwinds for both segments. As Tod mentioned, supply chain is pretty stressed and obviously raw material pricing is way up. And so we said in my script that we have an 8% to 10% increase in typical commodity cost representing 300 basis points of operating margin headwind that we need to offset.
And so we're focused on driving pricing in both segments to counter that. We've done some already and we have some to go. We said our gross margins would be flat to just slightly down. So we're expecting to pull both -- pull that 300 basis points back through our own actions that we're focused on, which again is really price-driven and then volume leverage. So I think both segments are equally challenged in terms of commodities and raw material pricing. And the guide overall is expecting another year of operating margin growth that comes from relatively flat gross margin and then leverage on the operating expenses to allow us to drive on an operating margin improvement from 10 basis points to 70 basis points, 80 basis points.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Okay. Appreciate the detail, Scott. And I think you mentioned Process Filtration sales of around 20% in 4Q. Sorry if I missed the detail, what was the full-year sales level and what's contemplated for process growth in your '22 guide?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. So we'd be mid-teens for the full year on a growth level for Process Filtration and we also expect to have double-digit growth looking forward in '22.
Bryan Blair -- Oppenheimer & Co. -- Analyst
That's excellent. And one more if I can, a portfolio question, what was Advance and Accelerate revenue as a percentage of fiscal '21 total? And on the other side of things, is it only Exhaust and Emissions at this point in the fix and reposition bucket?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. So we'll probably [Phonetic] look at the portion of the first question -- or the first portion of the question, Exhaust and Emissions remains in the fix and reposition, but we also have our aerospace business in there as you might imagine. We do expect aerospace to come out of it at the end of this year. But we actually bring -- bring that portion of the Company out of fix and reposition after they've delivered. We're very confident and comfortable with the plan that we've [Phonetic] had this year. However, now they have to deliver it and then we would expect them to probably come out of it next year.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Understood. Thanks again.
Operator
Your next question comes from the line --
Charley Brady -- Investor Relations
Hold on.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. So before the next question, Charley [Technical Issues]?
Charley Brady -- Investor Relations
Yeah. So the Advance and Accelerate portfolio, fourth quarter sales were up in the mid 20% range. They are about 950 basis points better on a margin than the overall Company excluding the A&A business?
Bryan Blair -- Oppenheimer & Co. -- Analyst
Okay.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
And as a percentage of Company as well.
Charley Brady -- Investor Relations
60%.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
60% to 65%, yeah. Okay, thank you operator.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Okay. Excellent. Thank you.
Operator
Your next question comes from the line of Nathan Jones with Stifel.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Nathan.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Good morning, everyone. I wanted to start off digging a bit further into gross margin, overall roughly flat, but there is a lot of moving pieces in there. You guys have added some capacity to remove some bottlenecks a couple of years ago, leveraging the ERP system was supposed to be lifting up gross margins and you're offset here obviously by significant cost inflation and whether the pricing is making up for that or not.
So I was hoping maybe -- you could maybe give us a little bit more color on the puts and takes there. What is the headwind from price cost to gross margins, just anymore color you can give us around the puts and takes in the gross margin line?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So certainly there is a fair amount going on in there, Nathan, as you noted. Again we -- the biggest impact is obviously the commodity cost increases, I'll say, 8% to 10%, which gives us a 300 basis point headwind that we have to offset, OK. And we're offsetting that with pricing and higher volume, which allows us to leverage our facilities. And so the way we see that year rolling out is what we have termed a bit of a bathtub curve. And so your first quarter will be down the most significant and that will be offset by improvements in the fourth quarter. Your second quarter will be down a bit and that will be offset by improvements in the third quarter.
So as we -- we layer in pricing and hopefully commodities begin to stabilize a bit, we're going to work our way out of this cycle and hopefully gross margins for the year will be flat to just slightly down. And so you can imagine, the first quarter being the toughest quarter and then things slowly start to improve whereby when you land in the fourth quarter, you're essentially offsetting the gross profit negativity from the first quarter to allow flat or slightly down margins for the whole year.
So, number one, commodity pricing that drives our raw material input costs up. There is also certainly some interest that we have in increasing our salaries, because demand is high for people and that's a headwind. We have our cost reduction improvements that our operations team is consistently operating on. We've had the capacity expansion that we talked about previously which allows us to operate more efficiently. We had increased volume which gives us better leverage and ability to leverage the overall fixed cost in the plants. So that's kind of all in the soup. And we expect this year to be flat to just slightly down in terms of gross margin with improving operating margin based on expense leverage.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Maybe just a strategic comment on it too, Nathan, is capacity expenses that we did across the Company here over the last three years, we stand in really good shape to take advantage of the leverage with the higher book of business. Clearly, if we can work through the supply chain problems that we are experiencing in raw material activities right now, I like our competitive position given our ability to produce and where we stand right now.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
And do you expect for the full year fiscal 2022 to offset the cost headwinds with price on a dollar basis, but it's still diluted to margin?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Well, we think our gross margin will be flat to just slightly down, OK. So from a percentage perspective, we should be flat to just slightly down, but our dollars, because our sales are up significantly, our gross profit dollars will be higher obviously. And we're going to leverage our opex. So we're going to grow opex but not nearly as fast as revenues. And so that gives us a bigger driver in operating margin as well as operating profit.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Got it. And then just a question on the labor shortages. You're talking about labor shortages for your own facilities in order to produce products. What kind of steps are you taking to try and get more skilled labor in, retaining the labor that you've got currently and how you see that playing out going forward?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
It is not just Donaldson Company with labor shortages. It is our supply base that has labor shortages to the point where we have actually called retirees in to help Donaldson Company to sit at our supply base to try to help with overall scheduling to get our demand. We have done overall typical type of salary based adjustments across the manufacturing plants and recruiting base adjustments with signing bonuses, etc. It's primarily US-based story relative to that and we're pulling all the levers that you typically would read anyone else doing right now across the United States. But I would -- I would suggest to you that in other parts of the world, it's not a labor story, it is really more of a raw material story.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Do you have an expectation for labor inflation this year?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
We've baked it into the guidance that we've given you at this point.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay. Fair enough. I'll pass it on. Thanks.
Operator
Your next question comes from the line of Brian Drab with William Blair.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Brian.
Operator
[Indecipherable]
Brian Drab -- William Blair & Co. -- Analyst
Yeah, yeah, too many buttons to press here. Sorry [Indecipherable]
Tod E. Carpenter -- Chairman, President and Chief Executive officer
We all know that.
Brian Drab -- William Blair & Co. -- Analyst
[Indecipherable] Sorry. Good morning. Congratulations. Great year in especially tough environment.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you.
Brian Drab -- William Blair & Co. -- Analyst
Yeah. So I just want to make sure, first of all, that I understand what we're seeing about the 300 basis points, is that -- what's the time period that we're talking about there because we just finished the year at 34% gross margin? Is that to say that first quarter '22 is going to be around 31% and then we build from there?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
No, I don't -- I think we already had some things that are building. So clearly our first quarter would be less than 300 basis points. That's the total dollar impact of the raw materials cost. But we've been layering in price increases and we will have good volume growth in the first half because of the softer comps. So it will be less than 300 basis points and it'll be -- the highest in the first quarter and then a little bit less in the second quarter, but less than 300 basis points because we have some things that are already in place and we'll also be working on that in the first quarter.
Brian Drab -- William Blair & Co. -- Analyst
I see. So the 300 basis points is just the impact related to raw materials and you're already dealing with some significant -- I mean, what's the magnitude of -- how would you quantify what the headwind from raw materials was in the second half of '21-- say in your fiscal '21?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. Well, we had -- right, good question. So we had -- actually that's an interesting dynamic of last fiscal year is that we actually have raw materials favorability in the first half because things were -- really hadn't started to take off yet and so the impact that we've seen from a negative perspective are primarily related to the second half of the fiscal year and now those are layering into next year. So I think you had kind of analyzed properly.
Brian Drab -- William Blair & Co. -- Analyst
Okay. And then you talked about the segments and the margin, but just to kind of help us model there. The segments ended the year with Industrial operating margin above Engine. For the year, they're pretty even. And I know you said you expect to see kind of similar pressure from raw materials across both segments, but should we -- and I don't know if you said this in the guidance already, but -- are the segments going to probably have similar operating margins in the next year or one have more pressure than the other?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. I mean, from a cost perspective they're going to both have similar raw material issues. Obviously, mix is a big driver. And we generally don't provide specific guidance in terms of each segment and their profitability, but we look for continued growth in profitability from both sides.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. Brian, maybe a little bit more color to tackle the model is that, if you just remember how we drive our Industrial business, it's a project-based business. And so as we wash those projects out, we're able to adjust to the pricing across that business as well as the independent channels on our aftermarket, which we control more on the Industrial side than we do on the Engine side. We do quite well on the independent aftermarket channels, but it's the OE portion of that business, which is roughly 35% of the business [Phonetic] that always lags within the pricing. And so you'll see likely more headwinds on the Engine side in the first portion of the year as we work through it.
Brian Drab -- William Blair & Co. -- Analyst
Okay. Thanks. And then just the last question, the high level, kind of strategic question. Over the last 18 months, imagine just given how fragmented the filtration industry is that you have seen some competitors either really struggling or disappearing, and obviously that's not the case with Donaldson, a very strong established company. So just wonder are you seeing opportunities that take care, win customers, are there new opportunities that you're hoping to capitalize on over the next year?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So we have seen some small kind of I call them mom and pop shops go away. Obviously, they've been pressured across the world. But it really hasn't changed the overall long-term environment for us and we look to win every single day and we look to plan future growth with our leading technology-based products. Those that are falling off by the wayside are typically chasing the commodity-based activities. And so while they may change the filtration landscape, it doesn't change Donaldson's ability to capture share or to go off and really embed [Phonetic] core things, which we continue to do every day. So not really a lot of competitive changes, if you will, [Indecipherable].
Brian Drab -- William Blair & Co. -- Analyst
Okay. Got it. Thanks a lot.
Operator
Your next question comes from the line of Laurence Alexander with Jefferies.
Dan Rizzo -- Jefferies -- Analyst
Hi. Good morning. This is Dan Rizzo on for Laurence. How are you?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning.
Dan Rizzo -- Jefferies -- Analyst
You mentioned -- good morning. You mentioned you're seeing I think as one of the raw material costs that are kind of on the rise and inventory or supply being a little constrained. I was wondering if the storm in the Gulf earlier this week, if your suppliers have signaled to you that that might make things even worse?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. It's a fantastic question actually. We've been dealing with that here, obviously, throughout the last short period of time. And, yes, we do have some European based concerns taking place across the supply chain right now. We are working with that group of suppliers. We do have that concern. It's an immediate concern and damage is being really inventory at this point to see how quickly they can come back online. So, yes, we have that concern.
What we did bake is what we think we understand about all that into the guidance that we gave you as well. That's part of the risks that we have talked about on the overall top line and our ability to deliver. It's more than the typical things. Now, we had the storm -- last weather event in Texas, the bad one really hurt the supply chain significantly and this hurricane season has us all very concerned as well.
Dan Rizzo -- Jefferies -- Analyst
Okay. That's very helpful. And then just with the labor issues, I guess it's not happening, but I was wondering [Indecipherable] enhance the benefits might make things ease, starting like now basically, I don't know, but I guess I've not seen that.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
We've done some of that already across the corporation. It's not really driving people to come back into the offices or into the -- into the -- look for jobs and come to our manufacturing plants. So we clearly have done those things. I'm not sure what's going to change the overall psyche of the labor force here in the United States, but will look to see where we are as schools open up and kids go back in September and hope for the labor force to pick up back then. Until then, right now it's very good to be a global company.
Dan Rizzo -- Jefferies -- Analyst
All right. Thank you very much.
Operator
[Operator Instructions] Your next question comes from the line of Dillon Cumming with Morgan Stanley.
Dillon Cumming -- Morgan Stanley -- Analyst
Great. Good morning, guys. Thanks for the question.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you.
Dillon Cumming -- Morgan Stanley -- Analyst
Tod, I wonder if I could just ask you -- you made some comments on your prepared remarks by saying kind of the minute updates here. I am so curious kind of around the outlook for the life science over the next year. So I think we're kind of coming up on a couple of quarters now where you made some hires in that area. So just curious you kind of update us around on the pipeline and what your kind of expectations are around, I mean for this year?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. I'd tell you that our pipeline is more robust than it's ever been. It's really healthy within the life sciences sector, like the game that we're playing here. Continue to knock on doors, very talented people helping us to really execute that. Obviously, can't predict when deals will happen. Wouldn't comment on any specific deal, but strategically what we're trying to accomplish, I'm very pleased with our progress and the execution to date.
Dillon Cumming -- Morgan Stanley -- Analyst
Got it. That's helpful color. And maybe to ask the kind of competitive question in the landscape there a different way. I think one of your larger peers they have made public their intentions to kind of spin or sell their own filtration business. Was just curious to kind of view there as to whether that business kind of operating as a stand-alone entity might actually contribute to more disciplined market or kind of any other competitive implications you might call out as a result to that dynamic?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So we're very aware of what they have been talking about and the potential options that they face. And so we'll follow that very closely. Obviously, we wouldn't specifically comment about a competitor like that. It's inappropriate. And so consequently, we'll just continue to keep a keen eye on that, watch the proceedings and move forward.
Dillon Cumming -- Morgan Stanley -- Analyst
Understandable. [Indecipherable] last question for me. I think you were kind of clear calling out the disconnect between kind of On-Road build guidance versus where call it ACC [Phonetic] might have their Class 8 forecast of the year. I mean have you kind of attributed to that as in product line that you were discussing. So just curious if you could kind of quantify that headwinds for the year and kind of whether or not we should expect that over the next few quarters or so?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
[Indecipherable] Could you maybe say that again?
Dillon Cumming -- Morgan Stanley -- Analyst
Yeah. Sorry. That was just with the On-Road business that you were discussing, in the prepared remarks you were saying that you were kind of exiting the product lines there?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. So what we did is there is a particular directed by its non-filter business that we've been doing -- because we have strong customer relationship, we've been doing it in the On-Road business, emissions related. It's not even our typical emissions business and we were sub-contracting a portion of that and we just help with the sourcing transfer to make it go to a sub-contractor directly and Donaldson got out of the business. And that's really helped -- that's a positive mix to us. And frankly, it's also good for our customer in the On-Road segment. So that's part of the positive mix.
The overall mix headwinds that we have and the emissions business is certainly overall tough headwind for us. It typically operates on profitability level of roughly half of Donaldson average and so we're going to have a significant growth in that business as well as in other mix challenges that we have, OE business, for example.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay. Got it. Thanks for the time, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you.
Operator
[Operator Instructions] Your next question comes from the line of Rob Mason with Baird.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Rob.
Rob Mason -- Baird -- Analyst
Yes, thanks for -- Good morning. Thanks for taking the question. Just quickly, a lot of discussions around price, but I'm just curious within the 5% to 10% revenue guidance for the year, what are you assuming for price or what range is built into that?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So we talked about the 300 basis points of commodity cost headwind that we face and we think our gross margins can be flat to just slightly down. So our plan is to offset a significant portion of that commodity cost increase with pricing.
Rob Mason -- Baird -- Analyst
And volume as well.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
And volume leverage.
Rob Mason -- Baird -- Analyst
Just -- you also discussed the backlog. Backlog, maybe above where you would normally expect it, like it. Just, how are you thinking about your ability to work down that backlog either in the first half or the second half? And really maybe where I'm going with this is just trying to get at how you think about your second half of the year visibility versus how -- you may typically start out a fiscal year, whether on the first-fit side or the aftermarket side?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. So we typically are in a much more comfortable position with our backlog execution as we started the fiscal year than we are at this point. We'll grind through the supply shortages. Inventory levels across the independent channels and the OE channels are low, lower than they want them more than we want them. So we look to execute and get back on our feet, but it's going to take into the next calendar year as we see it.
So we're going to be working through this first half of this fiscal year for us. And then we should be able to see some improvement on the back half. And that also goes into the guide. We had -- we're typically a 48%, 52% type of a company on the swings. And of course, last year we were more like 46%, 54%. And so we looked at our return a bit more normal. We're actually thinking we'll do about a 49%, 51% on the split this year. So you can see how -- how much of a jump in the first half as we walk through that backlog and get that -- get our customers really service. And that's how we're kind of breaking out and working through it.
Rob Mason -- Baird -- Analyst
Tod, how much of your backlog is a function of your first-fit customers planning further ahead given the supply chain challenges? Are you seeing that? Are you seeing longer-ranging forecast or is there situation so dynamic, it's maybe the inverse?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Tough to quantify. We talk about that all the time. It's clear -- absolutely clear, we are seeing some order ahead in order to try to -- the theory being, if you have more on order, you'll get more, not really working that way, but people do think that way and we do see that behavior in our backlog, no question about it. But we can't really quantify, Rob. I mean, the computers are linked to each other on the OE side and we look at it all the time.
I would suggest to you that what will happen over time is right now we would tell you our backlogs are probably extended to maybe as much as four and five months has been solid is the way we look at it and the normal behavioral period we would tell you it's 90 days. So it's probably like three months. And then in real tough cycles it cuts down to 30 days, but we would tell you that our backlogs for probably four or five, as much as five months are solid and high, and that's an indication that people are trying to restock to us and now we just have to work through and get it done.
Rob Mason -- Baird -- Analyst
Just the last question is again framing the outlook for the year, how do you think about that geographically? In particular, China, obviously had the tough comp this past quarter, but how are you thinking about China in particular with context of the 5% to 10%?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. China, it's interesting, right, because if we just look at Q4 '20, China as a country had record excavator production, record equipment utilization as they were coming out of the pandemic, right. And we're big in excavator, heavy-duty trucks and Off-Road equipment utilization than China. However, in '21 Q4 excavator production was down double digits -- low double digits. Heavy-duty truck production was down in the high teens and equipment utilization was down in the mid-teens and yet our business was actually in local currency down single-digit. So we know we're winning share there. We baked that into our overall China-based model, if you will, into the guidance.
And one of the thing that's really important to know -- to suggest how we're doing in China is we have quoted in the last year high teens worth of first-hit production products with proprietary product first-fit programs in China. And of those high-teens, we won them all. So that's [Indecipherable] for future growth and that's the momentum that we see ahead of us in China. And so we're still very bullish on the excellent work that our teams are doing over there.
Rob Mason -- Baird -- Analyst
Very good. Thank you.
Operator
There are no further questions. I will now turn the call over to Tod Carpenter for any closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you. Before signing off, I just want to acknowledge that we have talked to a number of our customers that have been affected by the hurricane of the past week. And just want to acknowledge that you're important to us and that our Company stands by to help you get through the difficult time. So please raise your hand, we'll help where we can and we wish you and your families nothing but very best. That concludes today's call. I want to thank everyone listening for your time and your interest in Donaldson Company. Goodbye.
Operator
[Operator Closing Remarks]
Duration: 59 minutes
Call participants:
Charley Brady -- Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Bryan Blair -- Oppenheimer & Co. -- Analyst
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Brian Drab -- William Blair & Co. -- Analyst
Dan Rizzo -- Jefferies -- Analyst
Dillon Cumming -- Morgan Stanley -- Analyst
Rob Mason -- Baird -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, inc (NYSE: DCI) Q4 2021 Earnings Call Sep 2, 2021, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer & Co. -- Analyst Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Rob Mason -- Baird -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We are pursuing growth opportunities in our Advance and Accelerate businesses, we are raising prices to mitigate the impact of cost increases and we are leveraging our strong relationships to remediate and overcome the current supply chain challenges. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer & Co. -- Analyst Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Rob Mason -- Baird -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, inc (NYSE: DCI) Q4 2021 Earnings Call Sep 2, 2021, 10:00 a.m. Thank you for joining Donaldson's fourth quarter and full year 2021earnings conference call With me today are Tod Carpenter, Chairman, CEO and President and Scott Robinson, Chief Financial Officer. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer & Co. -- Analyst Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Rob Mason -- Baird -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, inc (NYSE: DCI) Q4 2021 Earnings Call Sep 2, 2021, 10:00 a.m. And the guide overall is expecting another year of operating margin growth that comes from relatively flat gross margin and then leverage on the operating expenses to allow us to drive on an operating margin improvement from 10 basis points to 70 basis points, 80 basis points. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer & Co. -- Analyst Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Rob Mason -- Baird -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, inc (NYSE: DCI) Q4 2021 Earnings Call Sep 2, 2021, 10:00 a.m. So we're going to be working through this first half of this fiscal year for us. | 76ec770b-a76d-4709-adfa-c784b7989f2e |
709739.0 | 2021-09-02 00:00:00 UTC | Donaldson Guides FY22 Adj. EPS Well Below Estimates - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-guides-fy22-adj.-eps-well-below-estimates-quick-facts-2021-09-02 | nan | nan | (RTTNews) - While reporting financial results for the fourth quarter on Thursday, Donaldson Co. Inc. (DCI) initiated its earnings and sales growth guidance for the full-year 2022.
For fiscal 2022, Donaldson now projects earnings in a range of $2.50 to $2.66 per share and adjusted earnings in a range of $2.24 to $2.32 per share on net sales growth of 5 to 10 percent.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.68 per share on sales growth of 9.3 percent to $3.12 billion for the year. Analysts' estimates typically exclude special items.
For the fourth quarter, the company reported net earnings of $84.3 million or $0.66 per share from $64.2 million or $0.50 per share in the prior-year quarter.
Net sales for the quarter increased 25.2 percent to $773.1 million from $617.4 million in the same quarter last year. Sales increased 20.9 percent at constant currency rates.
The Street was looking for earnings of $0.66 per share on net sales of $770.69 million for the quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting financial results for the fourth quarter on Thursday, Donaldson Co. Inc. (DCI) initiated its earnings and sales growth guidance for the full-year 2022. On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.68 per share on sales growth of 9.3 percent to $3.12 billion for the year. The Street was looking for earnings of $0.66 per share on net sales of $770.69 million for the quarter. | (RTTNews) - While reporting financial results for the fourth quarter on Thursday, Donaldson Co. Inc. (DCI) initiated its earnings and sales growth guidance for the full-year 2022. For fiscal 2022, Donaldson now projects earnings in a range of $2.50 to $2.66 per share and adjusted earnings in a range of $2.24 to $2.32 per share on net sales growth of 5 to 10 percent. For the fourth quarter, the company reported net earnings of $84.3 million or $0.66 per share from $64.2 million or $0.50 per share in the prior-year quarter. | (RTTNews) - While reporting financial results for the fourth quarter on Thursday, Donaldson Co. Inc. (DCI) initiated its earnings and sales growth guidance for the full-year 2022. For fiscal 2022, Donaldson now projects earnings in a range of $2.50 to $2.66 per share and adjusted earnings in a range of $2.24 to $2.32 per share on net sales growth of 5 to 10 percent. For the fourth quarter, the company reported net earnings of $84.3 million or $0.66 per share from $64.2 million or $0.50 per share in the prior-year quarter. | (RTTNews) - While reporting financial results for the fourth quarter on Thursday, Donaldson Co. Inc. (DCI) initiated its earnings and sales growth guidance for the full-year 2022. For fiscal 2022, Donaldson now projects earnings in a range of $2.50 to $2.66 per share and adjusted earnings in a range of $2.24 to $2.32 per share on net sales growth of 5 to 10 percent. For the fourth quarter, the company reported net earnings of $84.3 million or $0.66 per share from $64.2 million or $0.50 per share in the prior-year quarter. | fc291f8f-5ab8-4c40-bc8b-d1018939d3f5 |
709740.0 | 2021-08-31 00:00:00 UTC | Donaldson Reaches Analyst Target Price | DCI | https://www.nasdaq.com/articles/donaldson-reaches-analyst-target-price-2021-08-31 | nan | nan | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $68.75, changing hands for $69.09/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 4 different analyst targets within the Zacks coverage universe contributing to that average for Donaldson Co. Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $64.00. And then on the other side of the spectrum one analyst has a target as high as $79.00. The standard deviation is $6.946.
But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $68.75/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $68.75 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Donaldson Co. Inc.:
RECENT DCI ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 2 2 2 2
Buy ratings: 1 1 1 1
Hold ratings: 3 4 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 2.08 2.21 2.21 2.21
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DCI — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $68.75, changing hands for $69.09/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $68.75/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $68.75 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $68.75, changing hands for $69.09/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $68.75/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $68.75 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with DCI crossing above that average target price of $68.75/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $68.75 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $68.75, changing hands for $69.09/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $68.75, changing hands for $69.09/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $68.75/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $68.75 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | 509f195b-dd3d-44b5-a1ed-b9c3e1362f09 |
709741.0 | 2021-08-24 00:00:00 UTC | Is Donaldson Company, Inc.'s (NYSE:DCI) Latest Stock Performance A Reflection Of Its Financial Health? | DCI | https://www.nasdaq.com/articles/is-donaldson-company-inc.s-nyse%3Adci-latest-stock-performance-a-reflection-of-its-financial | nan | nan | Most readers would already be aware that Donaldson Company's (NYSE:DCI) stock increased significantly by 11% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Donaldson Company's ROE.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
How To Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Donaldson Company is:
23% = US$267m ÷ US$1.2b (Based on the trailing twelve months to April 2021).
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.23 in profit.
What Is The Relationship Between ROE And Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Donaldson Company's Earnings Growth And 23% ROE
First thing first, we like that Donaldson Company has an impressive ROE. Secondly, even when compared to the industry average of 11% the company's ROE is quite impressive. This probably laid the groundwork for Donaldson Company's moderate 7.1% net income growth seen over the past five years.
As a next step, we compared Donaldson Company's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 8.1% in the same period.
NYSE:DCI Past Earnings Growth August 24th 2021
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Donaldson Company is trading on a high P/E or a low P/E, relative to its industry.
Is Donaldson Company Making Efficient Use Of Its Profits?
Donaldson Company has a three-year median payout ratio of 41%, which implies that it retains the remaining 59% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
Moreover, Donaldson Company is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 29% over the next three years. The fact that the company's ROE is expected to rise to 34% over the same period is explained by the drop in the payout ratio.
Conclusion
In total, we are pretty happy with Donaldson Company's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Most readers would already be aware that Donaldson Company's (NYSE:DCI) stock increased significantly by 11% over the past three months. NYSE:DCI Past Earnings Growth August 24th 2021 Earnings growth is a huge factor in stock valuation. Moreover, Donaldson Company is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. | NYSE:DCI Past Earnings Growth August 24th 2021 Earnings growth is a huge factor in stock valuation. Most readers would already be aware that Donaldson Company's (NYSE:DCI) stock increased significantly by 11% over the past three months. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Donaldson Company is: 23% = US$267m ÷ US$1.2b (Based on the trailing twelve months to April 2021). | Most readers would already be aware that Donaldson Company's (NYSE:DCI) stock increased significantly by 11% over the past three months. NYSE:DCI Past Earnings Growth August 24th 2021 Earnings growth is a huge factor in stock valuation. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. | NYSE:DCI Past Earnings Growth August 24th 2021 Earnings growth is a huge factor in stock valuation. Most readers would already be aware that Donaldson Company's (NYSE:DCI) stock increased significantly by 11% over the past three months. What Is The Relationship Between ROE And Earnings Growth? | 2fd7e661-e84d-454d-92e5-d595fd6345b2 |
709742.0 | 2021-08-12 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for August 13, 2021 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-dci-ex-dividend-date-scheduled-for-august-13-2021-2021-08-12 | nan | nan | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 13, 2021. A cash dividend payment of $0.22 per share is scheduled to be paid on August 31, 2021. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 4.76% increase over prior dividend payment. At the current stock price of $68.24, the dividend yield is 1.29%.
The previous trading day's last sale of DCI was $68.24, representing a -0.99% decrease from the 52 week high of $68.92 and a 50.97% increase over the 52 week low of $45.20.
DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Fuel Tech, Inc. (FTEK). DCI's current earnings per share, an indicator of a company's profitability, is $2.08. Zacks Investment Research reports DCI's forecasted earnings growth in 2021 as 16.17%, compared to an industry average of 6.7%.
For more information on the declaration, record and payment dates, visit the DCI Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Fuel Tech, Inc. (FTEK). Zacks Investment Research reports DCI's forecasted earnings growth in 2021 as 16.17%, compared to an industry average of 6.7%. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 13, 2021. DCI's current earnings per share, an indicator of a company's profitability, is $2.08. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DCI was $68.24, representing a -0.99% decrease from the 52 week high of $68.92 and a 50.97% increase over the 52 week low of $45.20. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. DCI's current earnings per share, an indicator of a company's profitability, is $2.08. Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 13, 2021. | a7419955-a523-437e-b1ea-283ff892e499 |
709743.0 | 2021-08-04 00:00:00 UTC | Why You Should Care About Donaldson Company's (NYSE:DCI) Strong Returns On Capital | DCI | https://www.nasdaq.com/articles/why-you-should-care-about-donaldson-companys-nyse%3Adci-strong-returns-on-capital-2021-08-04 | nan | nan | To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. That's why when we briefly looked at Donaldson Company's (NYSE:DCI) ROCE trend, we were very happy with what we saw.
What is Return On Capital Employed (ROCE)?
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Donaldson Company is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.21 = US$372m ÷ (US$2.4b - US$549m) (Based on the trailing twelve months to April 2021).
Thus, Donaldson Company has an ROCE of 21%. That's a fantastic return and not only that, it outpaces the average of 9.7% earned by companies in a similar industry.
NYSE:DCI Return on Capital Employed August 4th 2021
In the above chart we have measured Donaldson Company's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Donaldson Company here for free.
How Are Returns Trending?
In terms of Donaldson Company's history of ROCE, it's quite impressive. The company has consistently earned 21% for the last five years, and the capital employed within the business has risen 39% in that time. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. If Donaldson Company can keep this up, we'd be very optimistic about its future.
The Bottom Line
In the end, the company has proven it can reinvest it's capital at high rates of returns, which you'll remember is a trait of a multi-bagger. And the stock has followed suit returning a meaningful 99% to shareholders over the last five years. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further.
Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our FREE intrinsic value estimation that compares the share price and estimated value.
High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That's why when we briefly looked at Donaldson Company's (NYSE:DCI) ROCE trend, we were very happy with what we saw. NYSE:DCI Return on Capital Employed August 4th 2021 In the above chart we have measured Donaldson Company's prior ROCE against its prior performance, but the future is arguably more important. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. | That's why when we briefly looked at Donaldson Company's (NYSE:DCI) ROCE trend, we were very happy with what we saw. NYSE:DCI Return on Capital Employed August 4th 2021 In the above chart we have measured Donaldson Company's prior ROCE against its prior performance, but the future is arguably more important. The formula for this calculation on Donaldson Company is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = US$372m ÷ (US$2.4b - US$549m) (Based on the trailing twelve months to April 2021). | NYSE:DCI Return on Capital Employed August 4th 2021 In the above chart we have measured Donaldson Company's prior ROCE against its prior performance, but the future is arguably more important. That's why when we briefly looked at Donaldson Company's (NYSE:DCI) ROCE trend, we were very happy with what we saw. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. | That's why when we briefly looked at Donaldson Company's (NYSE:DCI) ROCE trend, we were very happy with what we saw. NYSE:DCI Return on Capital Employed August 4th 2021 In the above chart we have measured Donaldson Company's prior ROCE against its prior performance, but the future is arguably more important. What is Return On Capital Employed (ROCE)? | 8b8445c2-b23c-4fcb-ae44-8c8e14b33850 |
709744.0 | 2021-07-15 00:00:00 UTC | Donaldson Company, Inc.'s (NYSE:DCI) Business Is Yet to Catch Up With Its Share Price | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.s-nyse%3Adci-business-is-yet-to-catch-up-with-its-share-price-2021-07 | nan | nan | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Donaldson Company, Inc. (NYSE:DCI) as a stock to avoid entirely with its 31.1x P/E ratio. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.
Donaldson Company could be doing better as it's been growing earnings less than most other companies lately. One possibility is that the P/E is high because investors think this lacklustre earnings performance will improve markedly. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
NYSE:DCI Price Based on Past Earnings July 15th 2021
Keen to find out how analysts think Donaldson Company's future stacks up against the industry? In that case, our free report is a great place to start.
What Are Growth Metrics Telling Us About The High P/E?
There's an inherent assumption that a company should far outperform the market for P/E ratios like Donaldson Company's to be considered reasonable.
Retrospectively, the last year delivered a decent 6.7% gain to the company's bottom line. This was backed up an excellent period prior to see EPS up by 88% in total over the last three years. So we can start by confirming that the company has done a great job of growing earnings over that time.
Turning to the outlook, the next three years should generate growth of 15% per year as estimated by the seven analysts watching the company. That's shaping up to be similar to the 14% per annum growth forecast for the broader market.
In light of this, it's curious that Donaldson Company's P/E sits above the majority of other companies. It seems most investors are ignoring the fairly average growth expectations and are willing to pay up for exposure to the stock. Although, additional gains will be difficult to achieve as this level of earnings growth is likely to weigh down the share price eventually.
The Bottom Line On Donaldson Company's P/E
Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that Donaldson Company currently trades on a higher than expected P/E since its forecast growth is only in line with the wider market. Right now we are uncomfortable with the relatively high share price as the predicted future earnings aren't likely to support such positive sentiment for long. Unless these conditions improve, it's challenging to accept these prices as being reasonable.
A lot of potential risks can sit within a company's balance sheet. Our free balance sheet analysis for Donaldson Company with six simple checks will allow you to discover any risks that could be an issue.
If these risks are making you reconsider your opinion on Donaldson Company, explore our interactive list of high quality stocks to get an idea of what else is out there.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:DCI Price Based on Past Earnings July 15th 2021 Keen to find out how analysts think Donaldson Company's future stacks up against the industry? When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Donaldson Company, Inc. (NYSE:DCI) as a stock to avoid entirely with its 31.1x P/E ratio. Right now we are uncomfortable with the relatively high share price as the predicted future earnings aren't likely to support such positive sentiment for long. | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Donaldson Company, Inc. (NYSE:DCI) as a stock to avoid entirely with its 31.1x P/E ratio. NYSE:DCI Price Based on Past Earnings July 15th 2021 Keen to find out how analysts think Donaldson Company's future stacks up against the industry? The Bottom Line On Donaldson Company's P/E Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Donaldson Company, Inc. (NYSE:DCI) as a stock to avoid entirely with its 31.1x P/E ratio. NYSE:DCI Price Based on Past Earnings July 15th 2021 Keen to find out how analysts think Donaldson Company's future stacks up against the industry? Donaldson Company could be doing better as it's been growing earnings less than most other companies lately. | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Donaldson Company, Inc. (NYSE:DCI) as a stock to avoid entirely with its 31.1x P/E ratio. NYSE:DCI Price Based on Past Earnings July 15th 2021 Keen to find out how analysts think Donaldson Company's future stacks up against the industry? Donaldson Company could be doing better as it's been growing earnings less than most other companies lately. | 22148c95-d6dc-4728-a19d-9cafcf094891 |
709745.0 | 2021-07-09 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | DCI | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-07-09 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Stepan Co. (Symbol: SCL) $119.29 $151.50 27.00%
Stanley Black & Decker Inc (Symbol: SWK) $205.45 $234.00 13.90%
Johnson & Johnson (Symbol: JNJ) $169.08 $185.50 9.71%
Clorox Co (Symbol: CLX) $181.88 $198.00 8.86%
Donaldson Co. Inc. (Symbol: DCI) $64.09 $67.75 5.71%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Stepan Co. (Symbol: SCL) 1.02% 27.00% 28.02%
Stanley Black & Decker Inc (Symbol: SWK) 1.36% 13.90% 15.26%
Johnson & Johnson (Symbol: JNJ) 2.51% 9.71% 12.22%
Clorox Co (Symbol: CLX) 2.55% 8.86% 11.41%
Donaldson Co. Inc. (Symbol: DCI) 1.37% 5.71% 7.08%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Stepan Co. (Symbol: SCL) $1.075 $1.19 10.70%
Stanley Black & Decker Inc (Symbol: SWK) $2.76 $2.8 1.45%
Johnson & Johnson (Symbol: JNJ) $3.86 $4.09 5.96%
Clorox Co (Symbol: CLX) $4.24 $4.44 4.72%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.85 1.19%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on CLX — FREE Get the latest Zacks research report on DCI — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Stepan Co. (Symbol: SCL) $119.29 $151.50 27.00% Stanley Black & Decker Inc (Symbol: SWK) $205.45 $234.00 13.90% Johnson & Johnson (Symbol: JNJ) $169.08 $185.50 9.71% Clorox Co (Symbol: CLX) $181.88 $198.00 8.86% Donaldson Co. Inc. (Symbol: DCI) $64.09 $67.75 5.71% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Stepan Co. (Symbol: SCL) 1.02% 27.00% 28.02% Stanley Black & Decker Inc (Symbol: SWK) 1.36% 13.90% 15.26% Johnson & Johnson (Symbol: JNJ) 2.51% 9.71% 12.22% Clorox Co (Symbol: CLX) 2.55% 8.86% 11.41% Donaldson Co. Inc. (Symbol: DCI) 1.37% 5.71% 7.08% Another consideration with dividend growth stocks is just how much the dividend is growing. | Stepan Co. (Symbol: SCL) $119.29 $151.50 27.00% Stanley Black & Decker Inc (Symbol: SWK) $205.45 $234.00 13.90% Johnson & Johnson (Symbol: JNJ) $169.08 $185.50 9.71% Clorox Co (Symbol: CLX) $181.88 $198.00 8.86% Donaldson Co. Inc. (Symbol: DCI) $64.09 $67.75 5.71% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Stepan Co. (Symbol: SCL) 1.02% 27.00% 28.02% Stanley Black & Decker Inc (Symbol: SWK) 1.36% 13.90% 15.26% Johnson & Johnson (Symbol: JNJ) 2.51% 9.71% 12.22% Clorox Co (Symbol: CLX) 2.55% 8.86% 11.41% Donaldson Co. Inc. (Symbol: DCI) 1.37% 5.71% 7.08% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.075 $1.19 10.70% Stanley Black & Decker Inc (Symbol: SWK) $2.76 $2.8 1.45% Johnson & Johnson (Symbol: JNJ) $3.86 $4.09 5.96% Clorox Co (Symbol: CLX) $4.24 $4.44 4.72% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.85 1.19% These five stocks are part of our full Dividend Aristocrats List. | Stepan Co. (Symbol: SCL) $119.29 $151.50 27.00% Stanley Black & Decker Inc (Symbol: SWK) $205.45 $234.00 13.90% Johnson & Johnson (Symbol: JNJ) $169.08 $185.50 9.71% Clorox Co (Symbol: CLX) $181.88 $198.00 8.86% Donaldson Co. Inc. (Symbol: DCI) $64.09 $67.75 5.71% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Stepan Co. (Symbol: SCL) 1.02% 27.00% 28.02% Stanley Black & Decker Inc (Symbol: SWK) 1.36% 13.90% 15.26% Johnson & Johnson (Symbol: JNJ) 2.51% 9.71% 12.22% Clorox Co (Symbol: CLX) 2.55% 8.86% 11.41% Donaldson Co. Inc. (Symbol: DCI) 1.37% 5.71% 7.08% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.075 $1.19 10.70% Stanley Black & Decker Inc (Symbol: SWK) $2.76 $2.8 1.45% Johnson & Johnson (Symbol: JNJ) $3.86 $4.09 5.96% Clorox Co (Symbol: CLX) $4.24 $4.44 4.72% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.85 1.19% These five stocks are part of our full Dividend Aristocrats List. | Stepan Co. (Symbol: SCL) $119.29 $151.50 27.00% Stanley Black & Decker Inc (Symbol: SWK) $205.45 $234.00 13.90% Johnson & Johnson (Symbol: JNJ) $169.08 $185.50 9.71% Clorox Co (Symbol: CLX) $181.88 $198.00 8.86% Donaldson Co. Inc. (Symbol: DCI) $64.09 $67.75 5.71% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Stepan Co. (Symbol: SCL) 1.02% 27.00% 28.02% Stanley Black & Decker Inc (Symbol: SWK) 1.36% 13.90% 15.26% Johnson & Johnson (Symbol: JNJ) 2.51% 9.71% 12.22% Clorox Co (Symbol: CLX) 2.55% 8.86% 11.41% Donaldson Co. Inc. (Symbol: DCI) 1.37% 5.71% 7.08% Another consideration with dividend growth stocks is just how much the dividend is growing. Stepan Co. (Symbol: SCL) $1.075 $1.19 10.70% Stanley Black & Decker Inc (Symbol: SWK) $2.76 $2.8 1.45% Johnson & Johnson (Symbol: JNJ) $3.86 $4.09 5.96% Clorox Co (Symbol: CLX) $4.24 $4.44 4.72% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.85 1.19% These five stocks are part of our full Dividend Aristocrats List. | f370f861-b9b4-4dab-b73a-353355969580 |
709746.0 | 2021-06-25 00:00:00 UTC | Donaldson Company (NYSE:DCI) Has A Pretty Healthy Balance Sheet | DCI | https://www.nasdaq.com/articles/donaldson-company-nyse%3Adci-has-a-pretty-healthy-balance-sheet-2021-06-25 | nan | nan | Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. As with many other companies Donaldson Company, Inc. (NYSE:DCI) makes use of debt. But the more important question is: how much risk is that debt creating?
When Is Debt A Problem?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
What Is Donaldson Company's Net Debt?
As you can see below, Donaldson Company had US$425.3m of debt at April 2021, down from US$793.2m a year prior. However, it also had US$215.3m in cash, and so its net debt is US$210.0m.
NYSE:DCI Debt to Equity History June 25th 2021
A Look At Donaldson Company's Liabilities
Zooming in on the latest balance sheet data, we can see that Donaldson Company had liabilities of US$548.8m due within 12 months and liabilities of US$652.4m due beyond that. Offsetting this, it had US$215.3m in cash and US$553.8m in receivables that were due within 12 months. So its liabilities total US$432.1m more than the combination of its cash and short-term receivables.
Of course, Donaldson Company has a market capitalization of US$7.75b, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
Donaldson Company's net debt is only 0.45 times its EBITDA. And its EBIT covers its interest expense a whopping 27.0 times over. So we're pretty relaxed about its super-conservative use of debt. The good news is that Donaldson Company has increased its EBIT by 2.8% over twelve months, which should ease any concerns about debt repayment. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Donaldson Company's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we always check how much of that EBIT is translated into free cash flow. During the last three years, Donaldson Company produced sturdy free cash flow equating to 71% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
Our View
The good news is that Donaldson Company's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. And that's just the beginning of the good news since its net debt to EBITDA is also very heartening. Looking at the bigger picture, we think Donaldson Company's use of debt seems quite reasonable and we're not concerned about it. While debt does bring risk, when used wisely it can also bring a higher return on equity. Over time, share prices tend to follow earnings per share, so if you're interested in Donaldson Company, you may well want to click here to check an interactive graph of its earnings per share history.
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As with many other companies Donaldson Company, Inc. (NYSE:DCI) makes use of debt. NYSE:DCI Debt to Equity History June 25th 2021 A Look At Donaldson Company's Liabilities Zooming in on the latest balance sheet data, we can see that Donaldson Company had liabilities of US$548.8m due within 12 months and liabilities of US$652.4m due beyond that. Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. | As with many other companies Donaldson Company, Inc. (NYSE:DCI) makes use of debt. NYSE:DCI Debt to Equity History June 25th 2021 A Look At Donaldson Company's Liabilities Zooming in on the latest balance sheet data, we can see that Donaldson Company had liabilities of US$548.8m due within 12 months and liabilities of US$652.4m due beyond that. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). | As with many other companies Donaldson Company, Inc. (NYSE:DCI) makes use of debt. NYSE:DCI Debt to Equity History June 25th 2021 A Look At Donaldson Company's Liabilities Zooming in on the latest balance sheet data, we can see that Donaldson Company had liabilities of US$548.8m due within 12 months and liabilities of US$652.4m due beyond that. The first step when considering a company's debt levels is to consider its cash and debt together. | As with many other companies Donaldson Company, Inc. (NYSE:DCI) makes use of debt. NYSE:DCI Debt to Equity History June 25th 2021 A Look At Donaldson Company's Liabilities Zooming in on the latest balance sheet data, we can see that Donaldson Company had liabilities of US$548.8m due within 12 months and liabilities of US$652.4m due beyond that. What Is Donaldson Company's Net Debt? | f1ae966c-bba6-44ab-a25b-fc8792d95368 |
709747.0 | 2021-06-05 00:00:00 UTC | Results: Donaldson Company, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates | DCI | https://www.nasdaq.com/articles/results%3A-donaldson-company-inc.-exceeded-expectations-and-the-consensus-has-updated-its | nan | nan | A week ago, Donaldson Company, Inc. (NYSE:DCI) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 8.1% to hit US$765m. Donaldson Company reported statutory earnings per share (EPS) US$0.66, which was a notable 15% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Donaldson Company after the latest results.
NYSE:DCI Earnings and Revenue Growth June 5th 2021
Following the latest results, Donaldson Company's seven analysts are now forecasting revenues of US$3.12b in 2022. This would be a decent 16% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 26% to US$2.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.98b and earnings per share (EPS) of US$2.55 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.1% to US$66.20per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Donaldson Company, with the most bullish analyst valuing it at US$75.00 and the most bearish at US$54.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Donaldson Company's growth to accelerate, with the forecast 12% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Donaldson Company to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Donaldson Company following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Donaldson Company analysts - going out to 2025, and you can see them free on our platform here.
It might also be worth considering whether Donaldson Company's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A week ago, Donaldson Company, Inc. (NYSE:DCI) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. NYSE:DCI Earnings and Revenue Growth June 5th 2021 Following the latest results, Donaldson Company's seven analysts are now forecasting revenues of US$3.12b in 2022. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. | NYSE:DCI Earnings and Revenue Growth June 5th 2021 Following the latest results, Donaldson Company's seven analysts are now forecasting revenues of US$3.12b in 2022. A week ago, Donaldson Company, Inc. (NYSE:DCI) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Donaldson Company to grow faster than the wider industry. | NYSE:DCI Earnings and Revenue Growth June 5th 2021 Following the latest results, Donaldson Company's seven analysts are now forecasting revenues of US$3.12b in 2022. A week ago, Donaldson Company, Inc. (NYSE:DCI) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Donaldson Company after the latest results. | NYSE:DCI Earnings and Revenue Growth June 5th 2021 Following the latest results, Donaldson Company's seven analysts are now forecasting revenues of US$3.12b in 2022. A week ago, Donaldson Company, Inc. (NYSE:DCI) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Donaldson Company after the latest results. | 17a5b544-a9a5-4979-9ac9-be0aeb966e67 |
709748.0 | 2021-06-04 00:00:00 UTC | Donaldson Company (NYSE:DCI) Is Increasing Its Dividend To US$0.22 | DCI | https://www.nasdaq.com/articles/donaldson-company-nyse%3Adci-is-increasing-its-dividend-to-us%240.22-2021-06-04 | nan | nan | The board of Donaldson Company, Inc. (NYSE:DCI) has announced that it will be increasing its dividend on the 25th of June to US$0.22. Based on the announced payment, the dividend yield for the company will be 1.3%, which is fairly typical for the industry.
Donaldson Company's Dividend Is Well Covered By Earnings
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. The last dividend was quite easily covered by Donaldson Company's earnings. This indicates that quite a large proportion of earnings is being invested back into the business.
Over the next year, EPS is forecast to expand by 21.1%. Assuming the dividend continues along recent trends, we think the payout ratio could be 35% by next year, which is in a pretty sustainable range.
NYSE:DCI Historic Dividend June 4th 2021
Donaldson Company Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2011, the first annual payment was US$0.25, compared to the most recent full-year payment of US$0.88. This means that it has been growing its distributions at 13% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
We Could See Donaldson Company's Dividend Growing
The company's investors will be pleased to have been receiving dividend income for some time. Donaldson Company has impressed us by growing EPS at 8.6% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
Donaldson Company Looks Like A Great Dividend Stock
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 7 Donaldson Company analysts we track are forecasting continued growth with our free report on analyst estimates for the company. We have also put together a list of global stocks with a solid dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of Donaldson Company, Inc. (NYSE:DCI) has announced that it will be increasing its dividend on the 25th of June to US$0.22. NYSE:DCI Historic Dividend June 4th 2021 Donaldson Company Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Assuming the dividend continues along recent trends, we think the payout ratio could be 35% by next year, which is in a pretty sustainable range. | NYSE:DCI Historic Dividend June 4th 2021 Donaldson Company Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The board of Donaldson Company, Inc. (NYSE:DCI) has announced that it will be increasing its dividend on the 25th of June to US$0.22. We Could See Donaldson Company's Dividend Growing The company's investors will be pleased to have been receiving dividend income for some time. | NYSE:DCI Historic Dividend June 4th 2021 Donaldson Company Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The board of Donaldson Company, Inc. (NYSE:DCI) has announced that it will be increasing its dividend on the 25th of June to US$0.22. Donaldson Company's Dividend Is Well Covered By Earnings We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. | The board of Donaldson Company, Inc. (NYSE:DCI) has announced that it will be increasing its dividend on the 25th of June to US$0.22. NYSE:DCI Historic Dividend June 4th 2021 Donaldson Company Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Donaldson Company's Dividend Is Well Covered By Earnings We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. | ac800833-65c4-457e-9fa2-5ebe7fd8aafb |
709749.0 | 2021-06-03 00:00:00 UTC | Donaldson Reports Better-Than-Expected Q3 Earnings; Raises FY21 Guidance | DCI | https://www.nasdaq.com/articles/donaldson-reports-better-than-expected-q3-earnings-raises-fy21-guidance-2021-06-03 | nan | nan | Donaldson Company, Inc. (DCI) reported better-than-expected Q3 results driven by strength across all regions.
Donaldson is a technology-led filtration product and solutions company, serving a broad range of industries and advanced markets.
The company reported earnings of $0.66 per share, up 32% year-over-year, that surpassed the Street’s estimates of $0.58 per share.
Revenue came in at $765 million, up 21.5% from the year-ago period, and beat analysts’ expectations of $707.59 million. Compared to the prior year, Engine product sales grew 26.3%, while Industrial product sales were up 11.8%. (See Donaldson stock analysis on TipRanks)
Commenting on the company’s performance, Tod Carpenter, Chairman, President, and CEO of the company said, “Donaldson’s third quarter sales were the highest quarterly sales in our 106-year history and reflected strength in the economy as seen in our Engine segment and the beginning of recovery in our Industrial segment.”
Carpenter added, “With one quarter left in our fiscal year and customer demand at a high level for most of our businesses, we are confident the sales momentum we experienced in the third quarter will carry through our fiscal year-end.”
Based on strong Q3 results, the company is raising its guidance for Fiscal 2021. The company now forecasts adjusted earnings in the range of $2.28 to $2.34 per share, while the consensus estimate is pegged at $2.21 per share. Revenue is projected to grow 9% to 11% compared to FY2020.
Following the results, Oppenheimer analyst Bryan Blair assigned a Hold rating on the stock and said, “We view Donaldson as a high-quality industrial company with a long track record of delivering above-average growth at attractive ROIC. While Donaldson looks increasingly well positioned over the intermediate term, current valuation appears to fairly reflect the company's solid operating trajectory and top/bottom-line rebound potential amid continued macro uncertainty.”
The stock has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average analyst price target of $69 implies 9.8% upside potential to current levels. Shares have gained 26.6% over the past year.
According to TipRanks’ Smart Score system, Donaldson gets a 7 out of 10, which indicates that the stock is likely to perform in line with market averages.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company, Inc. (DCI) reported better-than-expected Q3 results driven by strength across all regions. Donaldson is a technology-led filtration product and solutions company, serving a broad range of industries and advanced markets. Following the results, Oppenheimer analyst Bryan Blair assigned a Hold rating on the stock and said, “We view Donaldson as a high-quality industrial company with a long track record of delivering above-average growth at attractive ROIC. | Donaldson Company, Inc. (DCI) reported better-than-expected Q3 results driven by strength across all regions. Compared to the prior year, Engine product sales grew 26.3%, while Industrial product sales were up 11.8%. While Donaldson looks increasingly well positioned over the intermediate term, current valuation appears to fairly reflect the company's solid operating trajectory and top/bottom-line rebound potential amid continued macro uncertainty.” The stock has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. | Donaldson Company, Inc. (DCI) reported better-than-expected Q3 results driven by strength across all regions. (See Donaldson stock analysis on TipRanks) Commenting on the company’s performance, Tod Carpenter, Chairman, President, and CEO of the company said, “Donaldson’s third quarter sales were the highest quarterly sales in our 106-year history and reflected strength in the economy as seen in our Engine segment and the beginning of recovery in our Industrial segment.” Carpenter added, “With one quarter left in our fiscal year and customer demand at a high level for most of our businesses, we are confident the sales momentum we experienced in the third quarter will carry through our fiscal year-end.” Based on strong Q3 results, the company is raising its guidance for Fiscal 2021. While Donaldson looks increasingly well positioned over the intermediate term, current valuation appears to fairly reflect the company's solid operating trajectory and top/bottom-line rebound potential amid continued macro uncertainty.” The stock has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. | Donaldson Company, Inc. (DCI) reported better-than-expected Q3 results driven by strength across all regions. The company reported earnings of $0.66 per share, up 32% year-over-year, that surpassed the Street’s estimates of $0.58 per share. Compared to the prior year, Engine product sales grew 26.3%, while Industrial product sales were up 11.8%. | 9fa5004e-e0ac-48e8-8d57-75af7c072d9e |
709750.0 | 2021-06-02 00:00:00 UTC | Donaldson Co (DCI) Q3 2021 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q3-2021-earnings-call-transcript-2021-06-02 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q3 2021 Earnings Call
Jun 2, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day and thank you for standing by. Welcome to the Donaldson Third Quarter 2021 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Charley Brady, Director, Investor Relations. You may begin.
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Charley Brady -- Investor Relations
Good morning, thank you for joining Donaldson's third quarter 2021earnings conference call With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our third quarter performance along with an update on key considerations for fiscal 2021.
During today's call we will reference non-GAAP metrics. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release.
Finally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, everyone. I'm very pleased with our third quarter results, which exceeded our expectation and was the highest sales quarter in our company's history. Third quarter highlights includes, sales increased 22% year-over-year and 13% sequentially from second quarter, the largest second to third quarter increase in over 10 years. Gross margin improved 50 basis points year-over-year and earnings per share grew 32%. This could not have been accomplished without our dedicated Donaldson employees who come to work every day whether at home or in the office to ensure we are meeting our goals in serving our customers. Thank you to all of my fellow teammates for the work you do.
Now let me provide some insights on our third quarter sales. Total company sales increased 22% in the third quarter from prior-year. In local currency sales rose 17%. While we acknowledge this is a soft comparison to last year when the pandemic slowed things, we also know this result is 7% above the strong pre-pandemic third quarter of fiscal 2019. We are pleased with this level of growth and believe our momentum will continue. Engine sales recorded strong year-over-year growth of 26%, 22% in local currency. Our 51% Off-Road business growth was widespread with all regions experiencing an increase in sales. In particular, local currency sales in Europe and Asia-Pacific were up 78% and 42% respectively. China sales increased almost 50%. Several factors give us confidence in the outlook for Off-Road. Global demand for construction and agriculture equipment remains high and mining is also seeing increased demand. PowerCore continues to gain traction in China and we are on track to deliver 2 times as many PowerCore air cleaners in 2021 compared to 2020. And our backlogs continue to build as we exit third quarter.
On-Road sales experienced a sharp rebound from the 1% year-over-year decline in second quarter, increasing 58% from 2020. Order and build rates for Class 8 trucks in the US have risen significantly over the past few months and are projected by external data sources to remain at a high level over the next several quarters. In China, our On-Road sales more than doubled driven by increased heavy-duty truck production and market share gains. With a favorable economic backdrop, our strong market position in North America and the significant opportunity to grow in China, we are optimistic on the outlook for our On-Road business. Aftermarket sales increased 23% in third quarter including a 4% currency benefit. Utilization rates for construction and agriculture equipment and heavy-duty trucks remain at a high level, which is driving increased demand for replacement products. In local currency sales Latin America increased by over 40% and Europe and Asia-Pacific were up 17% and 18% respectively.
Aerospace and Defense continues to be pressured, primarily due to a weak commercial aerospace market as a result of the COVID-19 pandemic. A bright spot in Aerospace and Defense is rotary aircraft where sales increased due to previous program wins now coming online.
Looking at the Industrial segment. Sales in third quarter increased 12% or 7% excluding the favorable impact of currency translation and growth was widespread across geographies. Industrial Filtration Solutions or IFS saw a significant sequential uptick in quoting activity for dust collection systems in third quarter. IFS benefited from increased sales of dust collection products on both a first-fit and replacement parts basis. This is a nice turnaround from the declines experienced in second quarter, which we believe was the trough. We have seen this business move from the -- if it breaks, you fix it cycle through the if it breaks new replace it cycle and now move to the investment and expansion cycle where we see increased purchases for new projects. We also saw increased sales in first-fit and replacement products across the rest of the IFS businesses, including greater than 50% growth at BofA and mid 20s percentage growth in Process Filtration sales. These growth rates indicate to us that not only are we winning share in targeted growth areas, we are also retaining the replacement business, which should only increase as our installed base becomes larger.
Sales of Gas Turbine Systems or GTS declined about 13% year-over-year due to a decline in demand for gas turbines used in the oil and gas market, a slowing of retrofit activity and the timing of projects. Sales in Special Applications saw double-digit growth in integrated venting solutions and membranes which was partially offset by a high single-digit decline in our disk drive business. These broad based positive company results give us increased confidence in our ability to have a strong finish to our fiscal 2021.
Finally, we believe supporting the communities in which our people live and work and where we do business is the right thing to do. Therefore, in third quarter Donaldson contributed $1 million to support our local community and help rebuild areas in Minneapolis and St. Paul that were damaged from the unrest over the last year.
With that, I'll now turn the call over to Scott. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Good morning, everyone. Like Tod, I'm also very pleased with our results in the third quarter, which were stronger than our expectations and as previously mentioned, the highest quarterly sales in the company's history. I want to thank our employees for this remarkable accomplishment in light of the challenges faced.
Total sales increased 22% year-over-year and operating margin increased 90 basis points to 14.3%. As you have heard me say many times, we are committed to generating higher levels of profitability on higher sales and our third quarter results demonstrate our commitment to this, even in the face of pressures from higher raw material costs and supply chain disruptions. As we entered the third quarter, we were building momentum and that continued through the end of the quarter, given our incoming order rates and backlog levels, we expect this momentum should maintain through the end of fiscal '21.
Now let me get into our third quarter results in a bit more detail. Our Engine segment profitability increased 250 basis points year-over-year as we leverage the significant uptick in sales. The Industrial segment in contrast, recorded a 50 basis decline in profitability. This decline is a result of the business unit mix with an industrial and weaker gross margins in GTS and disk drive products. Third quarter company gross margin improved by 50 basis points to 33.7% which accounted for a bit over half of the 90 basis point increase in operating margin. Raw material and freight cost inflation were headwinds and the reversal from the tail and we experienced in the first half of the fiscal year. Sales mix is also unfavorable to gross margin primarily as a result of strong and new sales. However, we were able to offset the margin pressures for sales leverage and pricing. We continue to expect second half gross margin will be up year-over-year, however, the headwinds from higher raw material and freight costs are increasing from what we experienced in the third quarter. Given the sharp increases in our raw material and freight costs, we are focused on pricing actions to mitigate the impact on our margin.
We remain committed to managing our price cost relationship, particularly in an environment of strong demand for our products. We are also committed to controlling operating expenses. In the third quarter operating expenses as a percentage of sales declined 40 basis points year-over-year. This was driven by leverage on increased sales, partially offset by increased incentive compensation expense. Investing on our strategic priorities remains a focus for us. Our Advance and Accelerate portfolio received the largest amount of our investment and over time as expected to generate sales growth and higher margins and company average.
We are also excited about the growth opportunities with our first-fit engine businesses. These businesses tend to be more cyclical and command leadership positions in their markets. In the case of On-road, Off-Road and Defense, there are multi-year programs that provide a solid base of business to help grow our aftermarket sales. We see opportunities for additional program wins and further penetrate into markets where we have a smaller share. One example is China but the market is large. There is an increasing willingness of OEs to adopt the filtration technology we provide and we are winning new programs. We have taken a disciplined approach to managing our business and opportunities by focusing on selective cost optimization projects and leveraging our global presence while continuing to invest in growth areas. As the world recovers from the pandemic, we are in a great position to participate in the post-pandemic upswing some of which is represented in our third quarter results.
We made capital investments of approximately $10 million in the third quarter, a decline of over 60% from the third quarter of last year as we bring to completion many of our significant capital projects from the prior two years. We paid over $26 million in dividends and repurchased over $32 million of our stock in the third quarter. Year-to-date we have returned almost $160 million to shareholders. We have paid a dividend every quarter for the past 65 years and increased our dividend every calendar year for the past 25 years, making Donaldson among a small group of companies that are included in the S&P High Yield Dividend Aristocrats Index, maintaining this track record is important to us.
Our results for the third quarter of fiscal '21 demonstrates that our focus on higher margins and higher sales is working. The results also underscore the diversification of our business model and our long-term view adds value to the company and our shareholders. We have good sales momentum as we head toward the end of the fiscal year which should carry through the fiscal '22, as such, we are raising our fiscal '21 sales and EPS guidance.
With that, let me share our updated expectations for fiscal '21. In the third quarter, we saw continued sales momentum in our Off-Road, On-Road and Aftermarket Engine businesses and an uptick in our Industrial Filtration Solutions business. Given the strong results we experienced and our visibility into the remainder of fiscal year, we expect full year sales will be up 9% to 11% year-over-year versus our prior guidance of 5% to 8% increase. Our annual guidance assumes a full year 3% benefit from currency translation. In our Engine segment, we project a sales increase of 12% to 14%, which is up from our prior guidance of an 8% to 11% increase. We project full year Off-Road sales will now increase in the mid to high 20% range, driven by continued strong demand for construction and agricultural equipment and increase ore activity in mining. Our prior guidance was for low 20% range growth.
In On-Road we expect full year sales will increase in the mid-teens compared to our prior guidance of low-teens. This increase is due to a stronger improvement in global heavy-duty truck production rates. Our Engine Aftermarket business has continued to see stronger than expected sales momentum, as global equipment utilization continues to improve. We now believe sales will increase in the mid-teens compared to our prior guidance of high single-digit increase. We believe utilization rates for construction and agriculture equipment as well as On-Road trucks will remain at a high level through our fiscal year-end. We continue to expect our full year sales in Aerospace and Defense to decline in the mid to high 20% range, given the pandemic related stock conditions in commercial aerospace resulted in weak demand.
In the Industrial segment, we expect a full-year sales increase of 3% to 5% versus our previous guidance of down 2% to up 2%. As Tod mentioned earlier, we are experiencing increased demand for industrial dust collection products particularly replacement parts. We have increased our outlook for IFS sales and now project sales growth in a mid-single digits compared to our previous expectations of flat sales. Core and sales activity have increased more quickly than we previously forecasted. GTS sales are expected to decline in the low single-digits versus our prior expectation of a mid single-digit increase.
In Special Applications, we continue to anticipate a decline in the low single-digits based on our year-to-date results and expected softness in the market for disk drive products. Expanding our gross margin remains a key focus for us. We continue to work to reduce cost and drive operational efficiencies to leverage higher sales. In the near term, however, increases in raw material prices and higher freight costs will pressure margins through fiscal '21 and into at least the early part of fiscal '22. To offset some of the sharp increases in our input costs, we have selectively raised prices and may do so again. We know the value we bring to our customers and we'll continue to demonstrate this value, the technology led products and best-in-class service.
We are expecting adjusted operating margin in a range of 13.8% to 14.2% compared to 13.2% in 2020. The midpoint of this range implies a sequential step up in operating margin to about 14.5% for the back half of the year compared to 13.5% in the first half. Additionally, we expect to maintain a disciplined approach to our operating expenses and deliver further leverage in the remainder of the year, despite an expected full year headwind of $5.25 million from increased incentive compensation, about half of which was incurred in the third quarter.
Other fiscal '21 operating metric expectations are: interest expense of about $13 million, other income of $5 million to $7 million and a tax rate between 24% and 25%. Capital expenditures are planned to be in the range of $55 million to $60 million. Taking the midpoint of our sales on capital expenditure guidance for 2021 would put us at just over 2% of sales which as we previously noted as lower in the last few years due to the completion of major projects. We also plan to repurchase 1.5% to 2% of our shares outstanding.
Our cash conversion has been very good in the first nine months of fiscal '21 and we expect to exceed 100% cash conversion for the full year. We will provide detailed guidance for fiscal '22 with our fourth quarter earnings release, however, I did want to provide a framework to help with modeling. The sales momentum we're currently experiencing is likely to carry through to the first half of fiscal 2022. We expect first half fiscal 2022 sales to a greater percentage of our full year sales as compared to the first half of fiscal 2021.
Looking at our fiscal '22 gross margin, we expect the headwinds from higher raw material and freight costs to increase from what we've experienced in FY 2021, particularly in the first half of FY 2022. Our operating expenses for fiscal '22 will have some pluses and minuses relative to fiscal '21. As we begin to operate on a more normal post-pandemic environment, we expect to see an increase in expenses related to in person customer engagement costs including marketing and travel costs as our sales and engineering employees return to on-site visits and attend trade shows. Investment in our Donaldson employees, including training and development and increased headcount to meet demand. However, we should see an offset in reduced incentive compensation expense on a year-over-year basis as we reset our annual compensation plans.
Our objectives for the remainder of this fiscal year and '22 are unchanged. We will continue to invest for growth and market share gains in our Advance and Accelerate portfolio, including inorganic growth in life sciences, execute productivity initiatives and pricing actions that will strengthen gross margin, maintain control operating expenses and protect our strong financial position through disciplined capital deployment and working capital management.
As I finish my commentary, I want to acknowledge all the Donaldson employees globally for the outstanding work they have done and continue to do every day. Our second half started off strong and we have solid momentum to carry us through the end of fiscal '21 and enter fiscal '22.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. Our third quarter results demonstrate the momentum we have in our business and the benefits of having a diversified portfolio. We continue to maintain a disciplined long-term focus on our strategy. To remind you, our strategic priorities remain unchanged and we are focused on expanding our technologies and solutions, extending our market access and executing thoughtful acquisitions, particularly in life sciences.
Some recent examples of new products include our new Ultrapac Smart Dryer for Compressed Air Process Filtration, an upgrade to our iCue Connected Filtration Service, which now comes standard on many of our Industrial Dust Collectors and over time will provide recurring revenue. The expansion of our Filter Minder real time monitoring service to Engine liquid filtration in addition to air filtration and our Rugged Pleat Baghouse industrial dust collector that we introduced in first quarter, which is already on pace to generate 2 times our initial first year forecasted sales.
Our strategy also involves seeking out inorganic growth opportunities and we are well positioned to expand our addressable market in life sciences. We have a solid roadmap and a pipeline of potential opportunities in life sciences. While I can't comment on when or if the deal might happen, I can say I'm very encouraged by the work the life sciences business development team is doing. They have increased our understanding of the life sciences market and improved our strategic focus in that area. We have the right people in place to execute our strategy.
We continue to maintain a strong balance sheet and disciplined on our capital deployment, which positions us well to make acquisitions that will expand our markets, increase our margins over time and allow us to further leverage our Filtration technology expertise. We have the ability to continue to invest in organic growth to extend our market reach, increase market share and maintain our market leadership positions. This is a very exciting time for Donaldson and I look forward to sharing our successes with you.
Before I close, I want to again thank our employees around the world for their continued dedication to Donaldson each other and our customers to meet our goal of advancing filtration for a cleaner world.
Now I'll turn the call back to the operator to open the line for questions.
Questions and Answers:
Operator
[Operator Instructions] First question comes from the line of Bryan Blair with Oppenheimer. Your line is open.
Bryan Blair -- Oppenheimer -- Analyst
Thanks, good morning guys.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Bryan.
Bryan Blair -- Oppenheimer -- Analyst
Really strong momentum overall for the most part in the quarter, definitely encouraging to see growth accelerate in IFS and Tod, you mentioned kind of the mentality shifts in the markets from break and fix to replace to more of an investment cycle at least the early stages of one. I was wondering if you could parse out replacement first-fit growth rates in the quarter or order rates going into your fourth quarter. Any color there would be very helpful?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. So typically that business runs at about 40% replacement parts and 60% on the first-fit cycle. And so we're starting -- that had shifted during the pandemic, almost reversed itself. And so, now we start to see that first-fit bounce starting to happen with momentum carrying forward, first with replacement parts bouncing. So we see strong replacement parts orders led by US as well as Western Europe and now especially with our new products that we have, bottom line within Q1 this year, we really start to see the momentum on the first-fit picking up quite nicely. We also see a reduction in order cycle.
Bryan Blair -- Oppenheimer -- Analyst
Understood. Okay. And if we look across your businesses, you noted increasing backlog entering the fourth quarter, expecting momentum into the first half of your fiscal '22. But as you think about the related moving parts, how does your team look at underlying demand inflection versus the pull forward of shipments, based on your own pricing actions, general supply chain uncertainties etc? I was trying to get a sense of I guess that mosaic as we look out the next couple of quarters.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, it's good if we step and look at the macro, step back and look at the macro, we've seen overall our backlogs increasing through the quarter and that also continued as we turn to page in the fourth quarter. We see -- if you just take an important data point, which is our Indian Aftermarket business and you look at the Aftermarket OE versus the Aftermarket independent channel, the growth within those two pieces of our company was roughly equal. And so therefore we see everything as a pull-through based demand taking place within the corporation. We have not really begun to see the stocking event happen, that still lies ahead of us, that as evidenced by the growing backlog that we have.
Bryan Blair -- Oppenheimer -- Analyst
That's very helpful. And last one from me if I can. Any additional details you can offer on any major supply chain challenges that you faced in the quarter was anticipated in your fiscal Q4 and on that front if you could describe how your capacity investments and the scale that you now have and the efficiencies that you now have, have a larger team to manage the unique environment we're in and meet surging demand relative to what you faced in the run up for fiscal '18?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. As you remember, we were talking about three years ago or so that we were going to accelerate investments backing capacity expansion as a corporation and we made that strategic thrust to do so much as our competitor [Indecipherable] so to speak within that last ramp-up, that is paying quite a dividend, wonderful dividends to us right now. Clearly, we've got that strategic decision correct. It is the reason why we have good sales momentum. We are carrying out our capacity utilization rates right now in the Engine business roughly in the mid 80s and the Industrial business are in the 70s. So we have room to run. However, we will also say the supply chain challenges within the quarter and that we see progressing or really continuing into the fourth quarter have been significant.
Now that said, I would tell you that our operations teams worldwide are doing absolutely a stellar job. We feel comfortable that we are out executing our competition and we hear that through our customer feedback, pretty consistent basis. We do have supply chain challenges still remaining with the most notable being the Texas store and the four day event that happened earlier in this calendar year, still presenting force matures on us for some of the raw material base, we look at those force matures to start to abate within the fourth quarter, some may go into the first quarter of next fiscal year, but we are continuing to work through those. We do see those challenges, kind of holding us back a bit in the fourth quarter, should they abate a little bit better and again, our supply chain teams are really doing absolutely [Indecipherable] work, just really exemplary of what's taken place, should they start to abate a little quicker, we do see that we can have a better outcome than is currently envisioned.
Bryan Blair -- Oppenheimer -- Analyst
Okay. Again helpful detail. Thanks again guys.
Operator
Thank you. Next question comes from the line of Nathan Jones with Stifel. Your line is open.
Nathan Jones -- Stifel -- Analyst
Good morning, everyone.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi, Nathan, good morning.
Nathan Jones -- Stifel -- Analyst
I'm going to say what I can do on a 2022 question here. If I go back to your 2018 Analyst Day, the target revenue for '21, which will give you a pass on not hitting COVID, with $3 billion to $3.3 billion, current revenue trend looks like you'll be kind of around the middle of that range, somewhere next year and you had a 15% to 15.8% operating margin target on that revenue. Is there any reason why is that the kind of revenue range that you are in that you can't get to that 15%, 15.8% operating margin or the price cost dynamics and things going on around that at the moment, maybe negate you being able to get to quite that level next year?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, hi, Nathan. This is Scott. So if you take the midpoint of our guidance, sales finished for this year, it would take about a 6% growth to hit the low end of the range of the target. And so we could likely get to the low end of that range on a 6% revenue growth in FY '22. So that's clearly insight for FY '22. In terms of operating margin, you saw that we had maintained the guidance of 13.8% to 14.2% because of some of the supply chain input cost challenges that we've noted the guidance in Investor Day targets was 15% to 15.8%. So that would be a 100 basis point improvement over a two-year period, and so that would be a pretty significant growth. I think we could get in that vicinity, but probably still a little bit below that range. So probably reasonable to get into the revenue range and probably around the operating margin range.
Nathan Jones -- Stifel -- Analyst
Fair enough. That's helpful. Maybe a question on price cost here. You guys had some fixed-price contracts particularly the OEM Engine side, and has the balance obtaining pricing with driving customers to move toward more of your proprietary products that generate better revenue and better retention over time. I got a hint on today's comments that you're maybe being a little more aggressive with pricing this time around than you were in 2018, which is reasonable. We've got significantly more inflation. Can you talk about how you're balancing those two things? And if you are being a little more aggressive on pricing [Indecipherable]?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure, Nathan. This is Tod. So if you just put our company into that OE first-fit side, which is 35% of revenue, 65% on that replacement parts or project-based activities, you're right. And the 65% of the corporation we are being aggressive. There are pricing activities in flight everywhere in the call as we speak, they -- we will start to see those coming early next fiscal year. They will be in effect. I do want to caution though that we do have to work through some backlogs to see the new pricing actually take effect and then start to leverage, but we are being more aggressive with the pricing, so to say, mid-single digit to low double-digit based increases dependent upon the business.
With regards to the OE side of things, the OE based conversations with the bumps of as much as 50% of business expansion on the OE side has really taken all the energy of both our customers as well as us to coordinate more of the demand satisfaction, if you will, rather than the pricing conversation. Some pricing conversations are happening and you're right. They are absolutely more aggressive than they have been in the past and it is a better environment than perhaps we've ever felt on the OE side relative to being able to enact pricing actions. But as you know, and as we've talked about many times they'll likely stretch out longer than the option that we have in flight with regards to that 65% of our corporation.
Nathan Jones -- Stifel -- Analyst
Great, thanks for the call Tod. I'll pass it along.
Operator
We have our next question from Richard Eastman with Baird. Your line is open.
Richard Eastman -- Baird -- Analyst
Yes, thank you and thanks for the question. Just to pick up on that, Scott, just to pick up on the last question here, was the price cost positive or negative in the quarter?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
We were able to increase our margin. So all things being considered, it was positive. There is a lot of pluses and minuses going on in there, right. We have prices obviously a benefit, mix is a headwind, commodities are obviously a headwind, freight is obviously a headwind. We talked about the bonus increase being a headwind. And then you get a big benefit from leverage. So there is a lot of pieces in there that make the margin probably a bit more complicated than typical, but we were pleased that we were able to continue to drive up the margins for the company on increasing sales, but there's are a lot in the suit there that you can see.
Richard Eastman -- Baird -- Analyst
Yes, yes. And just to clarify your comments, Scott, I think you made an or is it Tod that as we roll into the first half of '22, your comment was the first half of '22 would be a greater percentage of the full year revenue than was the first half of '21. Is that what you're suggesting?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
That is correct. If you take the midpoint of our guidance, this year we are 46% in the first half and 54% in the second half. So that's a pretty big difference for us. Generally, we're a bit closer to even and so we expect the momentum that we're seeing -- year to continue into next year, but we don't think that kind of 50% growth rates in Off-Road kind of momentum can continue for extended period of time. So we've seen it reversing next year. So, we want to help with your models in that, those percentages will probably flip next year because the momentum will be strong and it will be harder to keep growing sequentially to keep those kind of percentages continuing.
Richard Eastman -- Baird -- Analyst
Understood. And Tod just maybe to build off of that point, when you look at build slots as for the OEs both on the Off-Road and on the On-Road side, we're hearing a lot about the build slots for the next 12 to 18 months being pretty full. Maybe just your thoughts around how that may or may not impact that number that Scott just referenced, but your sales outlook on the OE side, is it being constrained by your customers' supply chain issues as well as the forecast looking like maybe build slots are getting pretty tight?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, thanks Rick. So if you really look at back at our business and where we are in backlog, clearly, the On-Road sector is really seeing a quite a nice bump. The Off-Road sector and the first-fit is also seen a bump but the level of jump on the On-Road sector is really quite impressive year-over-year as they are just looking to build more trucks as we turn into F-22. But really, all they're doing is getting back to 2019 based levels, maybe a little bit above that. So we've been able to satisfy that base requirement during that timeframe and we have since that time additional capacity expansion online. So what we really need to do to be able to get the necessary bump and take care of our customers, is get past the mostly raw material base shortages that we have been seeing and really continue working hard on the supply chain activities, because our capacity is there and so once we get past the raw material portion, then it becomes a people based conversation in the United States and can we get more additional personnel into our manufacturing plants.
Other parts of the world, Latin America, Western Europe, we're absolutely fine and even in China we're doing really quite well there. And so that will likely become a little bit of the US based story as you have been hearing in the news. We are not immune to some of those conversations.
Richard Eastman -- Baird -- Analyst
Okay. Okay. And just -- and sorry, one last thing, and just from your comments around the Analyst Day plan, some of your comments here around raw materials pricing, when you put this all in the bucket and shake it off, it does sound like the expectations going into fiscal '22 are still somewhere around this 100 bps of op margin leverage, with all the levers being pulled and poised. Is that still just a realistic starting spot assumption for op profit in '22?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes. So we're working hard through our plan right now. Our FP&A team is faced with a very dynamic environment and doing an excellent job keeping track of things. And so back to the FY -- the targets that were in the Investor Day, so we had a 15% was the low-end of the range and as you point out, our current range is 14% at the midpoint. And so I would view that more as a two-year journey versus the one-year journey. I mean, we're committed to increasing levels of profitability on increasing sales and we think we can do that while continuing to invest in our growth initiatives. So we want to continue to push money into the places that have good growth opportunities. And so I would look at that journey, more of a two-year step and I think you might have been looking at it more as a one-year step.
Richard Eastman -- Baird -- Analyst
Okay. With incentive one more lever with investment you're suggesting 50 bps would be the better '22 target, but that's what you're implying there?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, I mean we have to finish our plan and we'll give you a detailed guidance at the end of Q4 here. But I look at it more as a two year journey.
Richard Eastman -- Baird -- Analyst
Yes. I understand. Okay, excellent. And thank you, and it's great to see the volumes return.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Rick.
Operator
Okay, next question, we have the line of Brian Drab with William Blair. Your line is open.
Brian Drab -- William Blair -- Analyst
Hey, good morning. Thank you for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi, Brian.
Brian Drab -- William Blair -- Analyst
First one, just -- hi. So on -- specific question, just on the cost that you're seeing this year, for the full year of fiscal '21 as a result of supply chain issues, input costs and freight. Just with the thought that these are temporary. I know you said clearly some of this will trail into fiscal '22. But I'm just trying to gauge the magnitude of a potential gross margin tailwind in fiscal '22 relative to '21 with all of these unusual items that are happening this year?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, so I mean, like I said, it's kind of a dynamic environment to predict where some of these input costs will go and will they come back down and when will they come back down. So we're expecting obviously pressure in the fourth quarter and into next year. And so our raw materials and our freight are going to be pressured, and so we'll have to see where that goes and where we want to kind of cash the final plan assumptions. And so right now I don't know if I can predict whether there is a headwind or a tailwind? I would predict, for sure, there is a headwind in the first part of next year and then the big question is, when will the cost start to abate or will they abate and when will that happen, and how will that flow through our results? So we want to get a bit smarter with a matter of 90 days. Again, the big pieces will be raw materials and freight. It will certainly start-off as a headwind. We have a 25th $5 million incentive comp tailwind that we'll get because we can reset bonuses. So that will obviously bring us some relief against those first two items I mentioned and then we'll expect to get continued leverage on increasing sales. So those are the big pieces that will go into our calculus on the plan and I promise to come back to you at the end of the fourth quarter with some more specifics in that regard.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, Brian, this is Tod. I'll just add a little bit of color and tell you that, we are laser focused on the issue. Laser-focused on the map. And also the commodity-based spreadsheets that we have in order to be able to put pricing actions in flight and that is consuming our energy these days across the organization in order to make sure we can press forward like Scott says, the more difficult piece to predict is the back half of next fiscal year and so therefore we'll be smarter in about 90 days and really update the full-year picture.
Brian Drab -- William Blair -- Analyst
Okay, got it. Thank you. And then one more question. I just wanted to understand, what you're thinking for the fourth quarter here, Industrial sales were up 8% sequentially and Engine sales were up 15% sequentially in the third quarter, but the full year guide implies a sequential downtick slightly in Engine and about flat in Industrial. I'm just wondering why that's not conservative in this environment and also fourth quarter historically is up seasonally, isn't it?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, historically, our fourth quarter would be up just slightly. And so, as you know, we're kind of in more in the flat but just barely down in the fourth quarter with the current guidance. So we're really focused on the supply chain issues that are there, that's governing how fast we can run the plants and our operations team is doing an excellent job of securing all the materials they can get their hands on to build as many filters as we can get and get them out the door. We have May in hand for the most part. May was a little bit softer than the current run rate and we expect June and July will pick up. And so therefore we wanted to take what we thought was a reasonable posture with a regard to our Q4, with even being generally in that flattish area, we will still be up 25% over the last year and pretty consistent with this third quarter, which was a really big quarter for the company. In fact, our biggest quarter in our company's history. So we wanted to keep that in mind as we look at the fourth quarter.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, Brian, this is Tod, maybe a little bit more color. I would tell you this is not an incoming order question. This is not our ability to execute inside of manufacturing plants based question. This is a raw material input question and also really the supply chain issues and challenges that we continue to work through. We are really proud of the way that we are executing in the moment but that is the question that still remains, couldn't get even more than our current record that we just set in third quarter.
Brian Drab -- William Blair -- Analyst
Got it. Thanks for that color and congrats on the record quarter.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks Brian.
Operator
Thank you. Next question comes from the line of Laurence Alexander with Jefferies. Your line is open.
Daniel Rizzo -- Jefferies -- Analyst
Good morning. It's Dan Rizzo on for Laurence. Thank you for taking my questions. You mentioned that the capital projects were coming to an end and capex is a bit lower. I was wondering as we look out over the next two or three years, which is for processes for additional capital projects, are you comfortable with where you are or I mean looking at more expansions or what?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, so that's a good question. So we've said for the last several quarters that our capex is going to come down this year as we really focus on completion of many of the large-scale projects that we have undertaken. And so we're very pleased to be bringing these projects to completion and beginning to get the return out of those projects that we always expected. And so this year we spent more time kind of fine-tuning in completing projects and really buying new equipment and we said that that would happen and next year, we would expect to return to a more normal level. So our capex is clearly going to go up from this year probably back to more along the lines of our historical average.
If you look in the Investor Day, it seems like people have the Investor Day book out. You'll see there is a slide in there that shows our long-term history and then projected an increase for a short period of time and we would expect to be down from the big years that we've had and more in line with what we've done in the past. So you can take a 2.5% to 3% of sales is kind of a reasonable range for us. If we can find projects that are bigger that have a good return we'll always be willing to execute on those projects. We want to be good stewards of capital, but we want to deploy capital to help increase the capital invested and how to increase the return on capital invested. So we look at that as part of our planning process, but maybe in short, it will go up from this year.
Daniel Rizzo -- Jefferies -- Analyst
That's very helpful. And then just one other question, you mentioned obviously improving profitability is a focus. I was wondering if there is still areas where you could do some bottom slicing or discontinuing certain sales products or just areas where you would be removing things just to improve overall profitability that would maybe be a sales headwind?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, so I mean, I think our -- we've talked for years about our Oracle implementation that we completed about four years ago and our finance team and our IT team have done excellent work to improve the visibility and information we get out of the system, such that we have much more granular information at a product level. And so I think our business units have been doing an excellent job, looking at their product level of profitability, by part, by region, and so we can give them reports that show their weakest products or projects and then they can begin to focus on those by either de-emphasizing the product and/or increasing the prices on those products. So I would say that's something we work on a daily basis and our finance people I think are doing a good job helping identify those opportunities instead of growing revenue and improving the profitability on your existing revenue. I would say we're doing that and we still have room to improve, but that's something we will definitely continue to focus on.
Daniel Rizzo -- Jefferies -- Analyst
All right, thank you very much.
Operator
Thank you. Our next question we have Dillon Cumming with Morgan Stanley.
Dillon Cumming -- Morgan Stanley -- Analyst
Hey, good morning guys. Thanks for the question. I want to go back to the -- good morning Tod. I just wanted to go back to the kind of commentary around the restocking, I guess you kind of a little divestment with your earlier comments, but it's your sense kind of that the supply chain is not in a position to kind of meet the demands of a restock and I guess if I'm looking at the production rate that you early partners and then your commentary about utilization in the aftermarket channel, I mean that's amazing kind of should be suggesting a more meaningful restocking at this point in the cycle. So the question is we can produce to that and you kind of expect to see that more meaningfully as we look into the next year?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
I think you handicapped that very well.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay, got it. And maybe just kind of along the same lines, kind of piggyback on the next question, but you kind of laid out some of the commentary around the capacity investments you clearly feel like you're kind of well aligned for the next, I should say cycle here. But I guess, taking a step back where inventories are relative to sort of [Indecipherable] you're kind of customers and we've been independent distribution channel and you kind of see that utilization in the production trend that are materializing more recently. What is your view of this kind of current Industrial up cycle maybe versus the one you saw in '17 and '18. I mean are you expecting this could be a three to four year cycle versus the kind of 2% and 2.5% that we saw over the '17-'18 period?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, it's a great question. So we take a look at that and debated it internally as well. Clearly, we think it's a multi-year cycle for sure because of the fact that if you just look at Ag, we're probably early cycle on Ag. If you look at mining, mining is frankly just waking up compared to its hay day. Construction might be early late cycle. However, if we do get an infrastructure bill then overall utilization goes up across the country and so consequently that probably then goes mid cycle, because we should see a bump, a pickup from that overall truck rate production. They are not building yet at the level that they were, I'd say 350,000 trucks. Sure they have the orders, but they're not being kicked out at this point in time. So we see a less there that is going to be a multi-year less. And then on the Industrial side what we just talked about as a result of the OE based demand that we have that's when capex starts to flow real well and bodes well for our project-based Industrial businesses. So we overall, when we step back and we look at our corporation, we do see this is a multi-year uptick, and we look to be in a position based upon the capacity investments that we've made across our corporation and the strategic choices to invest in our people and really protect our foundation of our corporation long-term throughout the pandemic as really excellent strategic choices that it will be paying dividends for our company for this multi-year cycle for sure.
Dillon Cumming -- Morgan Stanley -- Analyst
That's really helpful color and maybe just one last one and wrap it up. I wanted to go back to your commentary on some of On-Road in particular, I think you were calling out higher build rates in China and kind of an increase in revenues there just with the On-Road business. I guess some of that surprising that maybe make some of the more recent market [Indecipherable] out of there suggest that that market seems to be rolling over a bit. I mean obviously you've had a lot of share gain there in the last few years. So I guess can you feel like that level of performance is just more about some of those share gain efforts or what's kind of going out in that market for you guys?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, we do believe that we can outperform the market within China. But please remember we're coming from a low share and so we were low single-digits. And so the number in percentages were pretty wonderful, but that also gets say mid single-digit share. And so we have some wonderful runway ahead of us and the share gains that we're winning on the first-fit production does see us have capacity expansion in China to be able to meet our region for region based manufacturing strategy going forward, but we do expect to outperform the growth rates within the China-based markets, just simply because of the share gains that we have, but also because frankly the comps are a little easier.
Dillon Cumming -- Morgan Stanley -- Analyst
Sure. Okay, got it. Thanks for the time guys.
Operator
There are no further questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Brian. So that concludes today's call. I want to thank everyone listening for your time and interest in Donaldson Company. Good bye.
Operator
[Operator Closing Remarks]
Duration: 56 minutes
Call participants:
Charley Brady -- Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Bryan Blair -- Oppenheimer -- Analyst
Nathan Jones -- Stifel -- Analyst
Richard Eastman -- Baird -- Analyst
Brian Drab -- William Blair -- Analyst
Daniel Rizzo -- Jefferies -- Analyst
Dillon Cumming -- Morgan Stanley -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q3 2021 Earnings Call Jun 2, 2021, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Nathan Jones -- Stifel -- Analyst Richard Eastman -- Baird -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We continue to maintain a strong balance sheet and disciplined on our capital deployment, which positions us well to make acquisitions that will expand our markets, increase our margins over time and allow us to further leverage our Filtration technology expertise. | Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Nathan Jones -- Stifel -- Analyst Richard Eastman -- Baird -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Co (NYSE: DCI) Q3 2021 Earnings Call Jun 2, 2021, 10:00 a.m. We continue to expect our full year sales in Aerospace and Defense to decline in the mid to high 20% range, given the pandemic related stock conditions in commercial aerospace resulted in weak demand. | Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Nathan Jones -- Stifel -- Analyst Richard Eastman -- Baird -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Co (NYSE: DCI) Q3 2021 Earnings Call Jun 2, 2021, 10:00 a.m. Third quarter highlights includes, sales increased 22% year-over-year and 13% sequentially from second quarter, the largest second to third quarter increase in over 10 years. | Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Nathan Jones -- Stifel -- Analyst Richard Eastman -- Baird -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Co (NYSE: DCI) Q3 2021 Earnings Call Jun 2, 2021, 10:00 a.m. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Charley Brady -- Investor Relations Good morning, thank you for joining Donaldson's third quarter 2021earnings conference call With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer. | 228b412f-9b2c-481b-afd2-5fff0ce26d29 |
709751.0 | 2021-06-02 00:00:00 UTC | Donaldson Q3 Results Climb; Lifts FY21 Earnings View Above Market - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-q3-results-climb-lifts-fy21-earnings-view-above-market-quick-facts-2021-06-02 | nan | nan | (RTTNews) - Donaldson Company, Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its third-quarter net earnings climbed 33.1 percent to $84.4 million from last year's $63.4 million. Earnings per share increased 32 percent to $0.66 from $0.50 in 2020.
Third-quarter net sales increased 21.5 percent to $765.0 million from $629.7 million in 2020. Sales increased 17.1 percent at constant currency rates.
On average, analysts polled by Thomson Reuters expected earnings of $0.58 per share on sales of $707.59 million. Analysts' estimates typically exclude special items.
Looking ahead for fiscal 2021, Donaldson lifted its guidance citing strong third-quarter results, current backlog levels, and incoming order rates.
The company now expects earnings per share between $2.20 and $2.26, higher than last year's $2.00, and adjusted earnings per share between $2.28 and $2.34. Donaldson previously expected fiscal 2021 adjusted earnings per share between $2.17 and $2.25.
Analysts expect earnings of $2.21 per share for the year.
Further, full-year sales are now expected to increase between 9 percent and 11 percent versus fiscal 2020, compared with prior guidance of between 5 percent and 8 percent.
Donaldson expects fiscal 2021 adjusted operating margin between 13.8 percent and 14.2 percent,3 compared with 13.2 percent in fiscal 2020.
In pre-market activity on NYSE, Donaldson shares were gaining around 4.2 percent to trade at $65.02.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Donaldson Company, Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its third-quarter net earnings climbed 33.1 percent to $84.4 million from last year's $63.4 million. On average, analysts polled by Thomson Reuters expected earnings of $0.58 per share on sales of $707.59 million. Looking ahead for fiscal 2021, Donaldson lifted its guidance citing strong third-quarter results, current backlog levels, and incoming order rates. | (RTTNews) - Donaldson Company, Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its third-quarter net earnings climbed 33.1 percent to $84.4 million from last year's $63.4 million. Third-quarter net sales increased 21.5 percent to $765.0 million from $629.7 million in 2020. Further, full-year sales are now expected to increase between 9 percent and 11 percent versus fiscal 2020, compared with prior guidance of between 5 percent and 8 percent. | (RTTNews) - Donaldson Company, Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its third-quarter net earnings climbed 33.1 percent to $84.4 million from last year's $63.4 million. The company now expects earnings per share between $2.20 and $2.26, higher than last year's $2.00, and adjusted earnings per share between $2.28 and $2.34. Further, full-year sales are now expected to increase between 9 percent and 11 percent versus fiscal 2020, compared with prior guidance of between 5 percent and 8 percent. | (RTTNews) - Donaldson Company, Inc. (DCI), a provider of technology-led filtration products and solutions, reported Wednesday that its third-quarter net earnings climbed 33.1 percent to $84.4 million from last year's $63.4 million. Earnings per share increased 32 percent to $0.66 from $0.50 in 2020. Analysts expect earnings of $2.21 per share for the year. | e4f34f83-9cc3-46af-8c71-e4f1fb682ce6 |
709752.0 | 2021-06-01 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | DCI | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-06-01 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65%
Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75%
AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20%
Target Corp (Symbol: TGT) $226.92 $239.47 5.53%
National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83%
Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18%
AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79%
Target Corp (Symbol: TGT) 1.20% 5.53% 6.73%
National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00%
AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22%
Target Corp (Symbol: TGT) $2.64 $2.72 3.03%
National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | a4806efe-72f0-4883-9d4d-9a0c265b24f3 |
709753.0 | 2021-05-25 00:00:00 UTC | Is Now The Time To Look At Buying Donaldson Company, Inc. (NYSE:DCI)? | DCI | https://www.nasdaq.com/articles/is-now-the-time-to-look-at-buying-donaldson-company-inc.-nyse%3Adci-2021-05-25 | nan | nan | While Donaldson Company, Inc. (NYSE:DCI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NYSE, rising to highs of US$64.99 and falling to the lows of US$57.07. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Donaldson Company's current trading price of US$60.92 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Donaldson Company’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's the opportunity in Donaldson Company?
According to my valuation model, the stock is currently overvalued by about 21%, trading at US$60.92 compared to my intrinsic value of $50.38. This means that the opportunity to buy Donaldson Company at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Donaldson Company’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Donaldson Company look like?
NYSE:DCI Earnings and Revenue Growth May 25th 2021
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Donaldson Company's earnings over the next few years are expected to increase by 55%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe DCI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on DCI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for DCI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Donaldson Company.
If you are no longer interested in Donaldson Company, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, the optimistic prospect is encouraging for DCI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop. While Donaldson Company, Inc. (NYSE:DCI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NYSE, rising to highs of US$64.99 and falling to the lows of US$57.07. NYSE:DCI Earnings and Revenue Growth May 25th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. | If you believe DCI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. While Donaldson Company, Inc. (NYSE:DCI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NYSE, rising to highs of US$64.99 and falling to the lows of US$57.07. NYSE:DCI Earnings and Revenue Growth May 25th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. | While Donaldson Company, Inc. (NYSE:DCI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NYSE, rising to highs of US$64.99 and falling to the lows of US$57.07. NYSE:DCI Earnings and Revenue Growth May 25th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. | While Donaldson Company, Inc. (NYSE:DCI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NYSE, rising to highs of US$64.99 and falling to the lows of US$57.07. NYSE:DCI Earnings and Revenue Growth May 25th 2021 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. DCI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. | c90663c8-1591-47ab-b4ac-5b2f340accd7 |
709754.0 | 2021-04-21 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-04-21 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Donaldson Co. Inc. (Symbol: DCI) $60.64 $65.75 8.43%
Cintas Corporation (Symbol: CTAS) $341.70 $369.62 8.17%
Church & Dwight Co Inc (Symbol: CHD) $89.17 $94.64 6.13%
MSA Safety Inc (Symbol: MSA) $156.43 $166.00 6.12%
Exxon Mobil Corp (Symbol: XOM) $55.29 $58.16 5.18%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Donaldson Co. Inc. (Symbol: DCI) 1.39% 8.43% 9.82%
Cintas Corporation (Symbol: CTAS) 0.88% 8.17% 9.05%
Church & Dwight Co Inc (Symbol: CHD) 1.13% 6.13% 7.26%
MSA Safety Inc (Symbol: MSA) 1.10% 6.12% 7.22%
Exxon Mobil Corp (Symbol: XOM) 6.29% 5.18% 11.47%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00%
Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06%
Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30%
MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38%
Exxon Mobil Corp (Symbol: XOM) $3.48 $3.48 0.00%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co. Inc. (Symbol: DCI) $60.64 $65.75 8.43% Cintas Corporation (Symbol: CTAS) $341.70 $369.62 8.17% Church & Dwight Co Inc (Symbol: CHD) $89.17 $94.64 6.13% MSA Safety Inc (Symbol: MSA) $156.43 $166.00 6.12% Exxon Mobil Corp (Symbol: XOM) $55.29 $58.16 5.18% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Donaldson Co. Inc. (Symbol: DCI) 1.39% 8.43% 9.82% Cintas Corporation (Symbol: CTAS) 0.88% 8.17% 9.05% Church & Dwight Co Inc (Symbol: CHD) 1.13% 6.13% 7.26% MSA Safety Inc (Symbol: MSA) 1.10% 6.12% 7.22% Exxon Mobil Corp (Symbol: XOM) 6.29% 5.18% 11.47% Another consideration with dividend growth stocks is just how much the dividend is growing. Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% Exxon Mobil Corp (Symbol: XOM) $3.48 $3.48 0.00% These five stocks are part of our full Dividend Aristocrats List. | Donaldson Co. Inc. (Symbol: DCI) $60.64 $65.75 8.43% Cintas Corporation (Symbol: CTAS) $341.70 $369.62 8.17% Church & Dwight Co Inc (Symbol: CHD) $89.17 $94.64 6.13% MSA Safety Inc (Symbol: MSA) $156.43 $166.00 6.12% Exxon Mobil Corp (Symbol: XOM) $55.29 $58.16 5.18% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Donaldson Co. Inc. (Symbol: DCI) 1.39% 8.43% 9.82% Cintas Corporation (Symbol: CTAS) 0.88% 8.17% 9.05% Church & Dwight Co Inc (Symbol: CHD) 1.13% 6.13% 7.26% MSA Safety Inc (Symbol: MSA) 1.10% 6.12% 7.22% Exxon Mobil Corp (Symbol: XOM) 6.29% 5.18% 11.47% Another consideration with dividend growth stocks is just how much the dividend is growing. Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% Exxon Mobil Corp (Symbol: XOM) $3.48 $3.48 0.00% These five stocks are part of our full Dividend Aristocrats List. | Donaldson Co. Inc. (Symbol: DCI) $60.64 $65.75 8.43% Cintas Corporation (Symbol: CTAS) $341.70 $369.62 8.17% Church & Dwight Co Inc (Symbol: CHD) $89.17 $94.64 6.13% MSA Safety Inc (Symbol: MSA) $156.43 $166.00 6.12% Exxon Mobil Corp (Symbol: XOM) $55.29 $58.16 5.18% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Donaldson Co. Inc. (Symbol: DCI) 1.39% 8.43% 9.82% Cintas Corporation (Symbol: CTAS) 0.88% 8.17% 9.05% Church & Dwight Co Inc (Symbol: CHD) 1.13% 6.13% 7.26% MSA Safety Inc (Symbol: MSA) 1.10% 6.12% 7.22% Exxon Mobil Corp (Symbol: XOM) 6.29% 5.18% 11.47% Another consideration with dividend growth stocks is just how much the dividend is growing. Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% Exxon Mobil Corp (Symbol: XOM) $3.48 $3.48 0.00% These five stocks are part of our full Dividend Aristocrats List. | Donaldson Co. Inc. (Symbol: DCI) $60.64 $65.75 8.43% Cintas Corporation (Symbol: CTAS) $341.70 $369.62 8.17% Church & Dwight Co Inc (Symbol: CHD) $89.17 $94.64 6.13% MSA Safety Inc (Symbol: MSA) $156.43 $166.00 6.12% Exxon Mobil Corp (Symbol: XOM) $55.29 $58.16 5.18% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Donaldson Co. Inc. (Symbol: DCI) 1.39% 8.43% 9.82% Cintas Corporation (Symbol: CTAS) 0.88% 8.17% 9.05% Church & Dwight Co Inc (Symbol: CHD) 1.13% 6.13% 7.26% MSA Safety Inc (Symbol: MSA) 1.10% 6.12% 7.22% Exxon Mobil Corp (Symbol: XOM) 6.29% 5.18% 11.47% Another consideration with dividend growth stocks is just how much the dividend is growing. Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% Exxon Mobil Corp (Symbol: XOM) $3.48 $3.48 0.00% These five stocks are part of our full Dividend Aristocrats List. | bc83016c-16e5-4c1e-9b39-dd8f049ed47a |
709755.0 | 2021-04-14 00:00:00 UTC | Read This Before Buying Donaldson Company, Inc. (NYSE:DCI) Shares | DCI | https://www.nasdaq.com/articles/read-this-before-buying-donaldson-company-inc.-nyse%3Adci-shares-2021-04-14 | nan | nan | It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Donaldson Company, Inc. (NYSE:DCI).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Donaldson Company Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman, Tod Carpenter, sold US$514k worth of shares at a price of US$51.36 per share. That means that even when the share price was below the current price of US$59.24, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.7% of Tod Carpenter's holding.
In the last year Donaldson Company insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
NYSE:DCI Insider Trading Volume April 14th 2021
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.5% of Donaldson Company shares, worth about US$34m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Donaldson Company Insiders?
The fact that there have been no Donaldson Company insider transactions recently certainly doesn't bother us. Our analysis of Donaldson Company insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Donaldson Company that deserve your attention before buying any shares.
But note: Donaldson Company may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So we'll take a look at whether insiders have been buying or selling shares in Donaldson Company, Inc. (NYSE:DCI). NYSE:DCI Insider Trading Volume April 14th 2021 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'. | So we'll take a look at whether insiders have been buying or selling shares in Donaldson Company, Inc. (NYSE:DCI). NYSE:DCI Insider Trading Volume April 14th 2021 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. In the last year Donaldson Company insiders didn't buy any company stock. | NYSE:DCI Insider Trading Volume April 14th 2021 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. So we'll take a look at whether insiders have been buying or selling shares in Donaldson Company, Inc. (NYSE:DCI). Donaldson Company Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Chairman, Tod Carpenter, sold US$514k worth of shares at a price of US$51.36 per share. | So we'll take a look at whether insiders have been buying or selling shares in Donaldson Company, Inc. (NYSE:DCI). NYSE:DCI Insider Trading Volume April 14th 2021 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. In the last year Donaldson Company insiders didn't buy any company stock. | e707ff5c-d5c1-45a5-8227-c4653d3af49d |
709756.0 | 2021-03-26 00:00:00 UTC | BofA sees 'golden decade' for U.S. municipal bond market under Biden | DCI | https://www.nasdaq.com/articles/bofa-sees-golden-decade-for-u.s.-municipal-bond-market-under-biden-2021-03-26 | nan | nan | By Karen Pierog
CHICAGO, March 26 (Reuters) - Massive fiscal aid, potentially huge infrastructure spending and the prospect of federal tax increases under President Joe Biden's administration will boost the U.S. municipal bond market in coming years, a BofA Global Research report said on Friday.
The market is already cheering the $1.9 trillion fiscal stimulus plan Biden signed into law on March 11, with $350 billion heading to states and local governments to help with lost revenue and higher costs due to the COVID-19 pandemic.
"The American Rescue Plan, along with President Biden's forthcoming infrastructure plan, forms the basis of the golden decade that we expect for muni market issuers through 2030," the BofA report said.
Aid was a factor in decisions this month by S&P Global Ratings and Moody's Investors Service to revise the credit outlook to stable from negative for the state and local government sectors.
The Democratic president is scheduled to unveil his "Build Back Better" plan next week that could have involve spending as much as $4 trillion on traditional infrastructure, as well as climate and domestic policy initiatives.
"Added to this is the potential benefit from tax changes that, on balance, should increase demand for munis," BofA said.
It pointed to the possibility of raising the 37% top personal tax rate back to 39.6%, limiting deductions for the highest earners to 28% and increasing the corporate tax rate to 28% from 21% to help pay for the additional federal spending.
Debt sold by states, cities, and other issuers in the $3.9 trillion municipal market is typically exempt from federal taxation.
A Barclays report on Friday said higher tax rates could incentivize banks and property and casualty insurance companies, which decreased their municipal holdings in the wake of the 2017 Tax Cuts and Jobs Act to boost their municipal buying.
(Reporting by Karen Pierog; Editing by Alden Bentley and Edmund Blair)
((karen.pierog@thomsonreuters.com; +1 312 408 8647; Reuters Messaging: karen.pierog.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Karen Pierog CHICAGO, March 26 (Reuters) - Massive fiscal aid, potentially huge infrastructure spending and the prospect of federal tax increases under President Joe Biden's administration will boost the U.S. municipal bond market in coming years, a BofA Global Research report said on Friday. The market is already cheering the $1.9 trillion fiscal stimulus plan Biden signed into law on March 11, with $350 billion heading to states and local governments to help with lost revenue and higher costs due to the COVID-19 pandemic. Aid was a factor in decisions this month by S&P Global Ratings and Moody's Investors Service to revise the credit outlook to stable from negative for the state and local government sectors. | By Karen Pierog CHICAGO, March 26 (Reuters) - Massive fiscal aid, potentially huge infrastructure spending and the prospect of federal tax increases under President Joe Biden's administration will boost the U.S. municipal bond market in coming years, a BofA Global Research report said on Friday. "The American Rescue Plan, along with President Biden's forthcoming infrastructure plan, forms the basis of the golden decade that we expect for muni market issuers through 2030," the BofA report said. A Barclays report on Friday said higher tax rates could incentivize banks and property and casualty insurance companies, which decreased their municipal holdings in the wake of the 2017 Tax Cuts and Jobs Act to boost their municipal buying. | By Karen Pierog CHICAGO, March 26 (Reuters) - Massive fiscal aid, potentially huge infrastructure spending and the prospect of federal tax increases under President Joe Biden's administration will boost the U.S. municipal bond market in coming years, a BofA Global Research report said on Friday. It pointed to the possibility of raising the 37% top personal tax rate back to 39.6%, limiting deductions for the highest earners to 28% and increasing the corporate tax rate to 28% from 21% to help pay for the additional federal spending. A Barclays report on Friday said higher tax rates could incentivize banks and property and casualty insurance companies, which decreased their municipal holdings in the wake of the 2017 Tax Cuts and Jobs Act to boost their municipal buying. | By Karen Pierog CHICAGO, March 26 (Reuters) - Massive fiscal aid, potentially huge infrastructure spending and the prospect of federal tax increases under President Joe Biden's administration will boost the U.S. municipal bond market in coming years, a BofA Global Research report said on Friday. The market is already cheering the $1.9 trillion fiscal stimulus plan Biden signed into law on March 11, with $350 billion heading to states and local governments to help with lost revenue and higher costs due to the COVID-19 pandemic. "The American Rescue Plan, along with President Biden's forthcoming infrastructure plan, forms the basis of the golden decade that we expect for muni market issuers through 2030," the BofA report said. | 453f4188-fea6-405e-9178-29a9cd54cb76 |
709757.0 | 2021-03-22 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-03-22 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Cintas Corporation (Symbol: CTAS) $333.05 $369.62 10.98%
Donaldson Co. Inc. (Symbol: DCI) $59.51 $66.00 10.91%
Church & Dwight Co Inc (Symbol: CHD) $83.09 $91.25 9.82%
Roper Technologies Inc (Symbol: ROP) $395.00 $428.43 8.46%
MSA Safety Inc (Symbol: MSA) $159.50 $169.50 6.27%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Cintas Corporation (Symbol: CTAS) 0.90% 10.98% 11.88%
Donaldson Co. Inc. (Symbol: DCI) 1.41% 10.91% 12.32%
Church & Dwight Co Inc (Symbol: CHD) 1.22% 9.82% 11.04%
Roper Technologies Inc (Symbol: ROP) 0.57% 8.46% 9.03%
MSA Safety Inc (Symbol: MSA) 1.08% 6.27% 7.35%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00%
Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30%
Roper Technologies Inc (Symbol: ROP) $1.902 $2.102 10.52%
MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cintas Corporation (Symbol: CTAS) $333.05 $369.62 10.98% Donaldson Co. Inc. (Symbol: DCI) $59.51 $66.00 10.91% Church & Dwight Co Inc (Symbol: CHD) $83.09 $91.25 9.82% Roper Technologies Inc (Symbol: ROP) $395.00 $428.43 8.46% MSA Safety Inc (Symbol: MSA) $159.50 $169.50 6.27% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cintas Corporation (Symbol: CTAS) 0.90% 10.98% 11.88% Donaldson Co. Inc. (Symbol: DCI) 1.41% 10.91% 12.32% Church & Dwight Co Inc (Symbol: CHD) 1.22% 9.82% 11.04% Roper Technologies Inc (Symbol: ROP) 0.57% 8.46% 9.03% MSA Safety Inc (Symbol: MSA) 1.08% 6.27% 7.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% Roper Technologies Inc (Symbol: ROP) $1.902 $2.102 10.52% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% These five stocks are part of our full Dividend Aristocrats List. | Cintas Corporation (Symbol: CTAS) $333.05 $369.62 10.98% Donaldson Co. Inc. (Symbol: DCI) $59.51 $66.00 10.91% Church & Dwight Co Inc (Symbol: CHD) $83.09 $91.25 9.82% Roper Technologies Inc (Symbol: ROP) $395.00 $428.43 8.46% MSA Safety Inc (Symbol: MSA) $159.50 $169.50 6.27% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cintas Corporation (Symbol: CTAS) 0.90% 10.98% 11.88% Donaldson Co. Inc. (Symbol: DCI) 1.41% 10.91% 12.32% Church & Dwight Co Inc (Symbol: CHD) 1.22% 9.82% 11.04% Roper Technologies Inc (Symbol: ROP) 0.57% 8.46% 9.03% MSA Safety Inc (Symbol: MSA) 1.08% 6.27% 7.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% Roper Technologies Inc (Symbol: ROP) $1.902 $2.102 10.52% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% These five stocks are part of our full Dividend Aristocrats List. | Cintas Corporation (Symbol: CTAS) $333.05 $369.62 10.98% Donaldson Co. Inc. (Symbol: DCI) $59.51 $66.00 10.91% Church & Dwight Co Inc (Symbol: CHD) $83.09 $91.25 9.82% Roper Technologies Inc (Symbol: ROP) $395.00 $428.43 8.46% MSA Safety Inc (Symbol: MSA) $159.50 $169.50 6.27% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cintas Corporation (Symbol: CTAS) 0.90% 10.98% 11.88% Donaldson Co. Inc. (Symbol: DCI) 1.41% 10.91% 12.32% Church & Dwight Co Inc (Symbol: CHD) 1.22% 9.82% 11.04% Roper Technologies Inc (Symbol: ROP) 0.57% 8.46% 9.03% MSA Safety Inc (Symbol: MSA) 1.08% 6.27% 7.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% Roper Technologies Inc (Symbol: ROP) $1.902 $2.102 10.52% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% These five stocks are part of our full Dividend Aristocrats List. | Cintas Corporation (Symbol: CTAS) $333.05 $369.62 10.98% Donaldson Co. Inc. (Symbol: DCI) $59.51 $66.00 10.91% Church & Dwight Co Inc (Symbol: CHD) $83.09 $91.25 9.82% Roper Technologies Inc (Symbol: ROP) $395.00 $428.43 8.46% MSA Safety Inc (Symbol: MSA) $159.50 $169.50 6.27% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cintas Corporation (Symbol: CTAS) 0.90% 10.98% 11.88% Donaldson Co. Inc. (Symbol: DCI) 1.41% 10.91% 12.32% Church & Dwight Co Inc (Symbol: CHD) 1.22% 9.82% 11.04% Roper Technologies Inc (Symbol: ROP) 0.57% 8.46% 9.03% MSA Safety Inc (Symbol: MSA) 1.08% 6.27% 7.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Cintas Corporation (Symbol: CTAS) $2.55 $4.26 67.06% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% Church & Dwight Co Inc (Symbol: CHD) $0.924 $0.973 5.30% Roper Technologies Inc (Symbol: ROP) $1.902 $2.102 10.52% MSA Safety Inc (Symbol: MSA) $1.68 $1.72 2.38% These five stocks are part of our full Dividend Aristocrats List. | 5d2216fa-3548-496d-8897-443b808a6867 |
709758.0 | 2021-03-19 00:00:00 UTC | Investors pour record money into equities even as bond yields rise - BofA | DCI | https://www.nasdaq.com/articles/investors-pour-record-money-into-equities-even-as-bond-yields-rise-bofa-2021-03-19-0 | nan | nan | Adds details, chart
LONDON, March 19 (Reuters) - Investors put a record $68.3 billion into equity funds in the week to March 17, even as a spike in government bond yields sent the high-flying Nasdaq index reeling, BofA data showed on Friday.
U.S. equity funds sucked in $53 billion as ultra-easy monetary policy continued to boost risk appetite.
BofA warned of tightening global financial conditions, however, with eight interest rate hikes across the world so far this year versus five cuts.
Meanwhile, the U.S. Federal Reserve pledged to look past inflation and keep interest rates near 0% until at least 2024. Still, the yields on 10-year notes spiked on Thursday to 1.75%.
That move sparked a massive sell-off on Wall Street with the tech-heavy Nasdaq 100 .NDX slumping 3.1%, wiping off more than $400 billion from company valuations in a single session.
BofA said the "uber-dovish Fed backfired" with bond vigilantes moving quickly to try to bully the central bank into yield curve control - pinning down yields on bonds of a particular maturity.
Global equity funds have attracted $347 billion so far this year, matching record inflows seen for 2017 as a whole. On an annualised basis, this year's inflows are a "breathtaking" $1.6 trillion, BofA said.
"We are in (the) midst of (the) strongest macro data of our lives," BofA investment strategist Michael Hartnett wrote in a note to clients.
But some cracks have started to appear. He said the Spring vaccine shortage in Europe and emerging markets means any disorderly bond yield rise could be negative for second quarter economic growth.
One year since the worst market cap losshttps://tmsnrt.rs/3eufdY6
(Reporting by Thyagaraju Adinarayan. Editing by Dhara Ranasinghe and Mark Potter)
((thyagaraju.adinarayan@tr.com; +44 (0) 20 7536 7471; Reuters Messaging: thyagaraju.adinarayan.thomsonreuters.com@reuters.net; Twitter @thyagu))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That move sparked a massive sell-off on Wall Street with the tech-heavy Nasdaq 100 .NDX slumping 3.1%, wiping off more than $400 billion from company valuations in a single session. "We are in (the) midst of (the) strongest macro data of our lives," BofA investment strategist Michael Hartnett wrote in a note to clients. He said the Spring vaccine shortage in Europe and emerging markets means any disorderly bond yield rise could be negative for second quarter economic growth. | Adds details, chart LONDON, March 19 (Reuters) - Investors put a record $68.3 billion into equity funds in the week to March 17, even as a spike in government bond yields sent the high-flying Nasdaq index reeling, BofA data showed on Friday. Still, the yields on 10-year notes spiked on Thursday to 1.75%. Global equity funds have attracted $347 billion so far this year, matching record inflows seen for 2017 as a whole. | Adds details, chart LONDON, March 19 (Reuters) - Investors put a record $68.3 billion into equity funds in the week to March 17, even as a spike in government bond yields sent the high-flying Nasdaq index reeling, BofA data showed on Friday. BofA warned of tightening global financial conditions, however, with eight interest rate hikes across the world so far this year versus five cuts. BofA said the "uber-dovish Fed backfired" with bond vigilantes moving quickly to try to bully the central bank into yield curve control - pinning down yields on bonds of a particular maturity. | BofA warned of tightening global financial conditions, however, with eight interest rate hikes across the world so far this year versus five cuts. Still, the yields on 10-year notes spiked on Thursday to 1.75%. Global equity funds have attracted $347 billion so far this year, matching record inflows seen for 2017 as a whole. | 2cd7d7f2-e1f0-471c-a39b-b7b578864da9 |
709759.0 | 2021-02-25 00:00:00 UTC | Donaldson Co (DCI) Q2 2021 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q2-2021-earnings-call-transcript-2021-02-26 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q2 2021 Earnings Call
Feb 25, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Donaldson Q2 FY '21 Earnings Call. [Operator Instructions] I will now hand the conference over to your speaker today, Mr. Charlie Brady, Director of Relations. Thank you. Please go ahead, sir.
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Charles Damien Brady -- Investor Relations
Thanks. Good morning, and thank you for joining Donaldson's Second Quarter 2021 Earnings Conference Call. With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our second quarter performance along with an update on key considerations for fiscal 2021. During today's call, we will reference non-GAAP metrics.
A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Finally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings. With that, I now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks, Charlie. Good morning, everyone. Looking at second quarter results, we are pleased with our performance. Second quarter were up 3% versus a year ago and up 7% sequentially from the first quarter. Our second quarter results demonstrate the strength of our business model with replacement part sales providing valuable stability as we grew market share in key markets and geographies. During this quarter, we also built momentum in first-fit sales in our Engine segment, and we're seeing increases of incoming orders across our Industrial segment.
We are pleased to see the uptick in second quarter sales and incoming orders within our first-fit equipment businesses. While this creates mix pressures in the short term, it also sets the stage for replacement parts in our razor to sell razor blade strategy and provides continued confidence that the worst of the pandemic-related economic impacts are behind us. We played the long game during the pandemic, maintaining our disciplined focus on the future and avoiding the temptation to make potentially shortsighted decisions on our cost structure. During the second quarter, we took planned full actions with a longer view toward optimizing our organization and our cost structure, primarily in Europe. We incurred $14.8 million in restructuring expense and expect annualized savings of approximately $8 million once the restructuring activities are completed over the next 12 months.
Excluding the impact from our restructuring actions, gross margin was up 30 basis points from the prior year as lower raw material costs, including benefits from our procurement initiatives more than offset the increasing pressure from an unavoidable mix of sales. With continuing momentum, we expect full year sales to be up 5% to 8% over 2020, including favorability from FX of about 3%. We're also projecting adjusted operating margin to increase 60 to 100 basis points, driven largely by gross margin strength. Finally, our company remains in a strong financial position. We had solid cash conversion during second quarter, and our balance sheet is in good shape with our net debt to EBITDA ratio sitting at 0.7 times. Our balance sheet gives us ample capacity to pursue our strategic initiative to move into the life sciences market via acquisitions and continue to invest in organic growth opportunities.
We're delivering on our strategic and financial objectives so far in fiscal 2021, and we are planning for a strong finish to the year. Scott will talk more about our forecast later in the call. But first, let me provide some additional color on recent sales trends. Total second quarter sales were up 2.6% from the prior year or 0.2% in local currency. Total Engine segment sales rose over 6%, and Industrial was down 4%. Geographically, the Asia-Pacific region led our positive performance as we continued to see very good growth in China. In the Engine segment, the sales increase was driven by meaningful growth in both Off-Road and Aftermarket. The growth was partially offset by a slight decline in On-Road and a drop in Aerospace and Defense. Off-Road growth was widespread with sales in all major geographic regions up from the prior year.
Importantly, our incoming order rates and backlog point to building momentum through the second half of fiscal 2021. Within Off-Road, our second quarter sales in China were up about 70%. We are seeing momentum in the market with construction equipment build rates remaining at high levels. We are also seeing strong growth of PowerCore in China, and several new PowerCore programs for Tier three upgrades have gone into production. On-Road sales were down about 1% in the quarter, which is our best year-over-year result since fiscal 2019, signaling to us that the second quarter was the cyclical trough in this business.
Our view is supported by external data with order rates for Class eight trucks launching higher in the past several months and higher build rates projected in the coming quarters. With increasingly favorable market conditions, combined with our strong share in North America heavy-duty trucks, we are optimistic about our opportunities to drive growth in our On-Road business. Second quarter sales of Aftermarket were up over 7% year-over-year, and they were also up 4% sequentially from the first quarter, which is atypical and serves as another indicator that market conditions are improving. In China, second quarter sales of Engine Aftermarket were up over 30%. We are beginning to see service parts benefit from new equipment under warranty, which includes an increasing percentage that have proprietary PowerCore and PowerPleat air cleaners installed.
Overall, PowerCore sales increased about 9% in second quarter with strong growth in both first-fit and replacement parts. As I mentioned earlier, in China, we are seeing significant growth, which we expect to continue as PowerCore becomes more mainstream. Aerospace and Defense, which represents about 3% of our business, faced another tough quarter due primarily to the ongoing pandemic-related weakness in commercial aerospace while sales for helicopters continue to perform well. As we expect, the time line for recovery in commercial aerospace to be protracted, we took restructuring actions within the quarter to improve our cost structure and better position the organization for the current business environment. Turning now to the Industrial segment. Second quarter sales were down about 4%, including a 3% benefit from currency.
We continue to face pressure on sales of dust collection sale products within Industrial Filtration Solutions, or IFS, as utilization rates were lower and customers remain cautious in making capital investments. Once again, a bright spot in the quarter was Process Filtration. Our Process Filtration for the food and beverage market with our LifeTec brand continues to grow, particularly on the replacement side. Overall Process Filtration sales increased in the high teens with contributions from both first-fit and replacement. And we see a long runway for further expansion of this business. We are making new inroads with some of the world's biggest food and beverage companies, and we are also gaining share with existing customers.
The sales process for these massive brands involves winning at the parent and then selling one plant at a time, which is why we continue to grow our sales force and invest in new tools and resources. We launched LifeTec five years ago with fewer than 10 salespeople, and we're on track to be over 100 by the end of this fiscal year. Sales of Gas Turbine Systems, or GTS, were down 3.5% in second quarter as large project deliveries, though a smaller part of our business, were less than the prior year. Our replacement parts business, on the other hand, delivered another quarter of double-digit growth. We continue to win share of aftermarket while being selective in which large turbine projects we pursue. The team has done a tremendous job of improving the profitability of GTS, and our more focused approach is clearly paying off.
In Special Applications, we again saw very good growth in integrated venting solutions as we continue to drive adoption in the automotive market with our high-tech products. However, overshadowing these wins were continuing softness in disk drive filters and lower sales of membrane products. Second quarter results highlight the strength of our diversified portfolio of businesses and disciplined focus on the long game. We are well positioned to benefit from the recovery in cyclical end markets, and we continue to press forward on our strategic initiatives, including the recently announced investments to grow our life science business. I'll talk more about that later.
So now I'll turn the call to Scott. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Good morning, everyone. As Tod said, we are pleased with our second quarter performance. Sales were up 2.6% from the prior year, and adjusted operating income grew 7.6%. Given the uneven macroeconomic environment, it was a strong quarter in terms of both absolute growth and leverage. Looking ahead, we plan to build on that momentum. As I said many times, we are committed to increasing levels of profitability and increasing sales. I know I'm repeating myself, but I also want all of you to know that, that statement is a guiding principle for us. One way we deliver on that commitment is through select optimization initiatives, which is how I would characterize the restructured actions we took in the second quarter.
Most of these activities are happening in Europe, and all of them support our long-term objectives. For example, we are centralizing key aspects of our aerospace business, giving us a strong platform for when the market returns to growth. We are moving the production of certain compressed air products to Eastern Europe, where we have an excellent team and a competitive cost structure. And we are centralizing our European accounts payable and customer service functions to improve standardization and optimization, giving us the ability to leverage common tools as we grow. The projects we initiated in the second quarter should generate annual savings of about $8 million once fully implemented with about $1 million realized in this fiscal year.
These actions drove a second quarter charge of $14.8 million and resulted in an operating margin headwind of about 220 basis points and an EPS impact of $0.08. We have excluded these charges from the calculation of our adjusted operating metrics, and the with and without details can be found in this morning's press release. We are confident in the value these optimization projects will create for our company, but I also want to acknowledge that they can be tough on the team. I appreciate all the hard work that has gone into the planning, and I want to thank our employees for supporting these initiatives and helping us deliver our long-term goals.
With that, I'll dig into our second quarter results a bit more. As I said earlier, adjusted operating profit, which excludes restructuring charges, was up 7.6% from the prior year. That translates to an adjusted operating margin of 13.4%, which is 60 basis points up from the prior year. Second quarter adjusted gross margin grew 30 basis points to 34%, accounting for half the operating margin increase. The price we paid for raw materials in second quarter was lower than last year due in part to our strategic procurement initiatives, and the gains were partially offset by an unfavorable mix of sales. While we expect gross margin will be up in the back half of fiscal '21, the drivers are predictably changing. As expected, raw materials will move from a tailwind to a headwind, and the pressure from mix is going to increase with the anticipated sharp growth in our first-fit businesses over the next two quarters.
As always, we remain focused on managing the price cost relationship. Net pricing for the company was a push last quarter, and we will take a proactive stance as raw material costs trend higher. We also remain focused on being deliberate with our operating expenses. As a rate of sales, second quarter adjusted operating expense was 30 basis points favorable versus the prior year, continued benefits from lower discretionary expenses due in part to the pandemic-related restrictions were partially offset by higher incentive compensation. Importantly, we continue to invest in our strategic priorities. Compared with last year, we invested more on research and development, and we increased our headcount-related expense to drive growth in our Advance and Accelerate portfolio of businesses.
You can see the impact of these choices more prominent in our Industrial segment, where many of our high-growth businesses are reported. If you exclude restructuring charges, the second quarter Industrial profit rate was down about 50 basis points from the prior year, reflecting incremental investments in businesses like Process Filtration and Venting Solutions. On the other hand, solid growth in our Engine segment is creating leverage across the P&L. The team is doing an excellent job of focusing on share gains and market expansion, especially in China, and they are also thinking long term. We are aggressively pursuing share gains in new markets and driving higher aftermarket retention with innovative products. We have great partnerships with many of the world's largest equipment manufacturers. We will be leveraging those relationships as we all navigate inflationary pressures related to raw materials and fulfilling rapidly elevating demand.
Across our company, we believe the balanced approach we have taken throughout the pandemic puts us in a strong position to capitalize on the economic rebound. Instead of making deep cuts to manage a short-term demand pressure, we focused on supporting our investors and making targeted investments into our strategic growth priorities. While we anticipate uneven market trends will continue, we are confident in our long-term positioning. Capital deployment is another area we have a disciplined and balanced approach. We invested about $12 million in the second quarter, which is down more than 70% from the prior year. With the economic environment improving and many of our new apps online, our focus is shifting toward driving productivity gains and working toward the operating margin targets we shared at our Investor Day in 2019.
We returned more than $57 million to shareholders through dividends and share repurchase, bringing our year-to-date total to almost $100 million. Maintaining our dividend is a priority for us, and we have demonstrated our willingness and ability to grow it over a long period of time. We have increased our dividend each calendar year for the past 25 years, making us part of the elite group included in the S&P High Yield Dividend Aristocrat index. Our position on the dividend is the same as it was 65 years ago when we began paying it every quarter. And I am proud of this trend. Share repurchase is also an important part of our capital deployment priorities, but it's a bit more variable. At a minimum, we plan to offset dilution from stock-based compensation in any given year, and we are on track to meet or exceed that objective this year. Beyond that, our share repurchase is guided by our balance sheet metrics, strategic opportunities and overall market conditions.
Overall, our narrative is consistent over time. Our year-to-date results demonstrate both the strength of our business model and the value we create by taking a long-term focused view. We plan to build on this momentum in the back half of 2021. So let me share some details on our expectations. As Tod mentioned, we see building momentum in our first-fit business throughout the past quarter. With this in mind, we expect sales this year to return to a pattern that is generally in line with our typical seasonality, where about 52% of our full year revenue occurs in the back half. Therefore, we expect full year sales will increase between 5% to 8%, which includes the benefit from currency translation of about 3%.
In the Engine segment, full year sales are projected to increase between 8% and 12% with our first-fit business comprising a bigger piece of the recovery story in the back half. We expect full year Off-Road sales to increase in the low 20% range with building strength in commodity prices driving an acceleration in equipment production in agriculture and other select markets. In On-Road, we expect a full year increase in the low teens, driven by the strong rebound in global truck production rates. We expect the momentum to continue in our Aftermarket business with a full year sales increase in the high single digits. We expect to continue to benefit from improving equipment utilization trends globally and market share gains in the Asia-Pacific region, particularly in China, where PowerCore is experiencing significant growth.
Our Aerospace and Defense business is anticipated to decline in the high-teens digits overall as demand in the commercial aerospace is expected to remain depressed. We do expect to see sequential improvements as we lap the pandemic-related impacts, and helicopter and ground defense programs continue to grow over time. In the Industrial segment, full year sales are projected to be between a 2% decline and a 2% increase as recovery in the capital investment environment is still emerging. We continue to press forward with market share gains during this period, and our investments in building the Advance and Accelerate portfolio are expected to continue to result in sales growth above the company average. We expect IFS sales to be roughly flat for the full year, reflecting a return to growth in the back half of the year.
While uncertainty remains, we are seeing signs of increased quoting activity and expect we are well positioned to capitalize on any recovery in addition to our gains in share and continued progress with our innovative products in important markets like food and beverage. Our GTS revenue is expected to increase by the mid-single digits, driven by continued growth in replacement parts. In special applications, we are anticipating a decline in low single digits based on our year-to-date results and expected softness in the market for disk drive products. At a company level, we are expecting an adjusted operating margin to increase to within a range of 13.8% and 14.2% compared to 13.2% in 2020. This implies a sequential step up in our operating margin to 14.4% for the back half of the year and aligns with our commitment to increasing profitability on increasing sales.
Gross margin expansion continues to be an important lever for us. We expect to benefit from our ongoing initiatives to drive cost efficiency in our operations and are positioned to gain leverage on a higher sales volume. Over time, mix should also be a consistent factor in driving our gross margin up. As we think about the near term, however, mix is likely to be a headwind as improving market conditions and our strong position with our large OEM customers will likely result in stronger first-fit sales growth in replacement parts. We are also beginning to see increases in our input costs, including steel and freight rates, so we are expecting a cost headwind for the remainder of fiscal 2021. We continue to invest in our customer relationships and in maintaining our position as a top-tier supplier.
We will continue to work to align our pricing with the increases in our input and supply chain costs. Additionally, we expect to maintain a disciplined approach to our operating expenses and deliver further leverage in the back half of the year despite an expected full year headwind of approximately $20 million from increased incentive compensation, about 2/3 of which is in the back half of the fiscal year. For our other operating metrics, we expect interest expense of about $13 million, other income of $2 million to $4 million, and a tax rate between 24% and 25%. Capital expenditures are planned meaningfully below last year, reflecting the completion of our multiyear investment cycle. Taking the midpoint of our sales and capex guidance for 2021 would put it at just over 2% of sales.
We expect to repurchase 1% to 2% of our outstanding shares. Finally, our cash conversion was very good in the first half, and we continue to expect to exceed 100%, reflecting strong first half conversion and anticipated increases in working capital later in the fiscal year. As I close my section, I want to take a moment to thank my colleagues around the world for their continued dedication to Donaldson and our customers. We have had a solid first half of our fiscal year and are expecting even better results in the second half. I am very proud of what our employees have been able to achieve in this unprecedented time, and I'm optimistic about Donaldson's future.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks, Scott. As we saw during the first year of our fiscal year, improving economic conditions are complementing the benefits from consistently strong execution of our strategic priorities. Of course, achieving the significant sales and profit growth projected in the second half is not without risks. Costs are going up. Demand for raw material is quickly increasing. The global supply chain is getting stretched, and above everything else, the pandemic is still hanging over all of us.
While the pandemic is certainly a new occurrence, the other pressures are not. We have successfully navigated them time and again due in large part to our talented employees and strong customer relationships. As always, we will manage our costs, execute strategic price increases and pursue profitable sales. It's a straightforward plan, and it has served us well for 106 years, giving me confidence we are in an excellent position to deliver a strong finish to fiscal 2021. I will also say that I'm more excited than ever about our long-term prospects.
As a reminder, our strategic priorities include expanding our technologies and solutions, extending our market access and executing thoughtful acquisitions. The recent announcement of our newly formed life sciences business development team represents a significant move that supports all those priorities. As previously announced, we hired a new Vice President to build and lead the life sciences team and drive our growth strategy. This team comes to Donaldson with tremendous industry experience, including strong M&A backgrounds. With the leadership in place, we are now poised to drive our expansion plans into the fast-growing, highly technical and highly profitable life sciences markets. While there are no specific details to share today, we are highly confident that technology-led filtration has a critical role in these spaces.
With our strong balance sheet and disciplined approach to capital deployment, we are well positioned to pursue acquisition opportunities that make strategic and financial sense. And we are also enhancing our internal capabilities to drive organic growth. Our new materials research center, which was completed last year, will further strengthen our material science capabilities. The technical skills we gain can be used right away by fueling growth in our current markets, like food and beverage, and they can be used to support longer-term growth in broader life sciences markets. We are committed to these new markets, and establishing the life sciences business development team is one step on a long journey, but it was an important step.
I'm excited about our opportunities and look forward to sharing our success with all of you over time. Before closing, I want to thank our employees for their hard work over the last two quarters and the last year. One year ago, we were all wondering about how COVID-19 was going to ripple through the economy, and there were more questions than answers. We all still have questions, but one thing that I am more certain about is the quality of our employees. They are truly remarkable. I've seen that personally, and we can all see it in our company's results. To my more than 12,000 colleagues around the world, thank you for all you continue to do to support our goal of advancing filtration for a cleaner world.
Now I'll turn the call back to Tabitha to open the line for questions. Tabitha?
Questions and Answers:
Operator
[Operator Instructions] Your first question is from the line of Bryan Blair with Oppenheimer.
Bryan Blair -- Oppenheimer -- Analyst
Thanks, good morning, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Good morning, Bryan.
Bryan Blair -- Oppenheimer -- Analyst
I just wanted to level set, if we can, on a couple of the guidance points. With IFS flattish for the year that implies approaching high single-digit rate down in the back half, so decent momentum there. How does that break down between first fit and replacement sales?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Bryan, what's happening is, right now, I would tell you in the IFS markets, as we went into the pandemic, essentially people started to -- on the capex side pull back and go to if it breaks, fix it type of mentality. We've now seen our capex -based orders change from just a fix-it mode to, hey, let's replace it. And you see that in our incoming order cycle. What we have ahead of us is that mental shift from a replacement type of a cycle to an invest-and-expand cycle. So, we see orders now picking up on the first-fit cycle of IFS and picking up on the equipment side, and that's being led by the US and China. We haven't given specific breakouts of overall of the two pieces, but we do see an increasing momentum on the equipment side today.
Bryan Blair -- Oppenheimer -- Analyst
Okay. Very helpful color. And it looks like the midpoint of guidance ranges implies a little over 20% incremental margin in the back half. How should we think about that by segments? And in that context, any additional color on volume, mix, price cost impacts would be appreciated.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes. So, I mean there's a lot of factors in there. Maybe starting with engine -- first of all, we're going to have, in terms of gross margin -- in general, we're going to have raw material increases and freight increases across both businesses. And so those will be a constant. In terms of volume, our volumes will be relatively flat in Industrial with a plus two to minus two guide and up pretty significantly in engine with the guide. So, engine will have a stronger ability to leverage the volume, and that'll help them. And then our cost-reduction projects that we have going in operations will help reduce or offset the headwinds we're facing. So we expect positivity in both. Engine has a much larger growth foreseen, and so they'll have a little bit of an edge up because of their ability to leverage that industrial won't have.
Bryan Blair -- Oppenheimer -- Analyst
That makes sense. And Scott, you mentioned in the Investor Day targets from 2019. And obviously, the world has changed since then. If we think of what was put out there by segment, it looks like engine maybe made it comfortably in the revenue range that you had targeted initially for fiscal '21. Is the 14.8% plus operating margin in play, assuming momentum continues into next year? And then on the industrial side, I know that's a bit more of a stretch from run rate revenue, but as they scale to $1 billion plus, is the 17% margin or higher still achievable? Or have there been some structural changes or increased investment rate that may lower that target?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes. So I mean, I have the book right here in my hand. I carry it with me everywhere I go because we still keep these targets in mind, and we're still driving toward those numbers that we laid out. Certainly, engine is further along than industrial because their growth has picked up. So I think you've captured it appropriately in that we're closer to the engine targets than we are in the industrial targets because of their current growth trajectories. And so therefore, they're a little bit ahead in the race, but we expect and are still driving both sides of the equation to get to the finish line. And as we've said before, the targets are still in play, but we've just pushed them out because of the pandemic-related stalls in revenue growth.
Bryan Blair -- Oppenheimer -- Analyst
Okay, fair enough. Thank you.
Operator
And the next question is from the line of Brian Drab with William Blair.
Brian Drab -- William Blair -- Analyst
Hi, good morning. Thanks for taking my questions. And I may have missed the answer to this one, but just quickly, the restructuring in EMEA is focused on which segments? Is it more industrial? Or can you just talk about where that focus is or is aerospace?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes. I can take that, Brian. This is Scott. Good morning. So the restructuring, the total charge was $14.8 million. If you break that down between gross margin and opex, it was about $5.8 million in gross margin and $8.9 million in opex. And that's split across the company, both in engine and in industrial. And engine, it's a little more focused on aerospace, as we mentioned. And the industrial example I gave was the move of some of the production to Eastern Europe.
And then some corporate functions, which included, for example, centralization of accounts payable and also the centralization of the customer service functions. So, it's relatively spread out and broad across various functions with the targeted initiatives that I talked to. So hopefully, that provides you with a little more color. It's approximately 8% of EPS.
Brian Drab -- William Blair -- Analyst
Got it. And is that something that's been contemplated? Or is this more of a response to situations that we're seeing now related to the pandemic?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes, Brian. This is Tod. So I would tell you on the aerospace and defense move, we had contemplated them. I think the pandemic exacerbated the need to do them much quicker than we had expected. So clearly, that's more of a pandemic response. All the rest of the other moves were in our longer-term plans. They were in our sights, and it was time to move forward.
Brian Drab -- William Blair -- Analyst
Got it. And there's -- Tod, there's quite a bit of discussion around China. It sounds like things are going really well there now. Can you update us on whatever you're willing to disclose in terms of a percent of total sales that China accounted for in the quarter and percent of on-road sales that China accounted for in the quarter?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes. Let me have Charlie look that up within the model and get back to you here, Brian. So maybe --,
Brian Drab -- William Blair -- Analyst
Maybe while he's looking that up, can I just ask, just generally, Tod, you also talked about PowerCore quite a bit in China. And how are your margins on PowerCore in China relative to the rest of the world? And just in general, Power margins in the, I guess, particularly in the engine business in China versus outside China lately?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Overall, PowerCore right now in China is a little bit tougher, but it's because it's an import product for us today. We don't have our PowerCore line up and running in China. It is now in China. It's being installed in China. So, when we get that pivot to in-country for country revenue, then it will be on par with the balance of the world in PowerCore. Right now, it's a little bit of trouble because of importations and such a long way of shipping. Overall, the engine-based margins in China are on par with the balance of the world, I would say. Off-road is on par with off-road. On-road is on par with on-road with the rest of the world.
Brian Drab -- William Blair -- Analyst
Great. Okay.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Brian, just to answer your question on China growth for the entire company in the quarter, China was up 31% or, in local currency, up 23%. And then we'll follow-up with you on the balance of the splits relative to the segments, Brian. Okay, next, operator.
Operator
Your next question is from the line of Richard Eastman with Baird.
Richard Eastman -- Baird -- Analyst
Yes. Thank you. Thanks for the questions. Nice work on the quarter. Tod, just curious, we're all kind of watching the commodity prices, and you've referenced it a number of times here for the second half being a little bit more of a headwind. But I'm curious, if you kind of back up a little bit, I'm listening to a lot of the OEMs that you supply, and in particular, one of them, on the ag side, is really suggesting some pretty significant price increases for their products into the marketplace.
But, is there an acknowledgment on the OE side that customer base that maybe there's more of an acceptance if you were to raise prices as a vendor to them in the current market with the current commodities pressures emerging post pandemic? Is the pricing environment to you feel a little bit more flexible than maybe it has in other past rebounds?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Short answer, no. I think it's -- really -- I think, Rick, it's going to behave as it has every other time. It's standard work for us. We know when overall inflationary pressure's up, down. We -- it's the same type of a cycle all the time. It's constant support of the OEs with what's happening. I would acknowledge the inflationary pressures that we're seeing, particularly on steel. Steel is a pretty rough commodity out there right now. The increases are, frankly, seeming excessive.
And so that's forcing us, because of availability, to buy on the spot, so spot markets. And so consequently, we are seeing some inflationary pressures across steel. And as you know, that's our largest commodity across our products. We do have protections that would push some of that off into the fourth quarter. Those inflationary pressures though likely come harder next year because we have the full year of those than it would for the balance of this fiscal.
Richard Eastman -- Baird -- Analyst
Okay, OK. Fair enough. So we'll have that headwind. And then just as a kind of dovetail into -- we see the pressures here on the commodity side. Obviously, the incentive recovery here -- wages incentives back into the model. But as you think about out to fiscal '22, and we're looking for maybe a normalized conversion margin -- incremental margin at the OP line, are we -- how do we feel about that? Because it looks like in the second half here, with the pressures we've spoken to, will be around 20% conversion. But how do you start to think about this model producing a conversion margin of -- give me a range where that should start to normalize here.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, this is Scott. Good morning, Rick. So we're definitely committed to higher levels of profitability and increasing sales. So we need to continue to drive the incremental earnings, and we're committed to that. And we had 37% this quarter, which is much higher than our historical average, say, in the 20% to 25% range. So we're going to continue to drive to those numbers. We wanted to invest in the company in our advance and accelerate portfolio, which we will continue to do, but with an eye toward we need to be able to deliver those incremental margins.
I would say, consistent with our overall history, it can jump around in any one quarter. But longer term, I think you see we're in the 20%, 25% range. And we want to continue to drive to that because we're committed to increasing levels of profitability on increasing sales, and you got to have margins in that range to feel comfortable about delivering that, at least that's how we look at it.
Richard Eastman -- Baird -- Analyst
Okay. All right. Fair enough. And then just my last question really quickly. Tod, as we add resources into the advance and accelerate portfolio, and in particular, on the life sciences and adding to those capabilities and maybe using M&A to boost the technology portfolio for life sciences, is there -- what's the willingness -- or what's the thought process around looking at more of an adjusted EPS type of metric? And I'm thinking as much about comp plans for senior management as I am, just from a reported standpoint. And again, the assumption being that it'd be somewhat costly. There could be some more -- could be increased purchase accounting amortization. And just curious how you think about that metric given the long-standing objective at Donaldson for EPS growth.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, that's an excellent question, and something we've thought about. And it's a little bit hard to know until you have a deal in hand how you're going to address that. But I think those are all excellent points to consider as we move forward with this life sciences strategy, and I think we will consider those points.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes. And just maybe a little bit more color here for you, Rick. We certainly discussed that. We haven't landed on a hardcore spot as to whether an adjusted type of metric is the appropriate way to go. Certainly, it makes it all more comfortable if there are no adjustments. But we do have those conversations. We just haven't landed in a hard spot on that yet.
Richard Eastman -- Baird -- Analyst
Yes, yes. I just -- I think of it more as, from my vantage point or our -- maybe our vantage point, an adjusted EPS number is almost accepted these days. But I think my point being that it's always felt like a bit of a restraint at Donaldson to pay up for some of these -- for developing a presence in some of these other markets.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
I can tell you, Rick, that we have a strategic plan where we recognize, particularly in the life sciences sector, what the multiples are to enter that point and to do deals. We're very realistic about that multiple, and that type of behavior will not hold us back.
Richard Eastman -- Baird -- Analyst
Yes, fair enough. Okay, great, thank you.
Operator
And your next question is from the line of Laurence Alexander with Jefferies.
Laurence Alexander -- Jefferies -- Analyst
Hi. Just following up on that. As you extend your footprints in the life sciences, should your R&D to sales or your capital intensity change? So, if we think about just the total investments you'll be making in that area, would there be a shift in the intensity of the business?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes. It's a great question, Laurence. It's Tod. So if you remember, we have long been a 2% to 3% R&D as a percent of sales type of a company. And at Investors Day, I had referenced that we would be moving to 3% to 4% of sales. And it was all with this change in mind in order to support that. So we've already put that target out there, letting you know that hey, we're going to go to 3% to 4%. That feels very comfortable to us in order to be able to do everything that we would need to do to go organically into the life sciences sector and then support it as well. Given the overall size of our corporation, it would support it on the R&D for supporting acquisitions as well.
Laurence Alexander -- Jefferies -- Analyst
Okay, great. Thanks.
Operator
And your next question is from the line of Nathan Jones with Stifel.
Adam Farley -- Stifel -- Analyst
Hi, good morning. This is Adam Farley on for Nathan.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Good morning, Adam.
Adam Farley -- Stifel -- Analyst
So turning to engine aftermarket, the business returned to growth after five quarters of year-over-year decline and growth sequentially for the second and third quarter. So, are you guys seeing any restocking yet in different channels, the independent channel or the OE channel?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes, great question. So what we have seen is pull-through levels at the independent channel and the OE channel. And so we would tell you that the majority of our growth clearly is being pulled through. We would, however, caveat and say maybe 1% of that particular growth that we see would be increased as a result of some of the supply chain issues that is being felt across the industries and that we have some of the OEs as well as the independent channel worried about stock-outs. And so they probably ordered ahead just a little bit, but it's not like it's been a big inventory step up or anything like that. It's really pull-through levels with this slight protection, if you will, for their markets.
Adam Farley -- Stifel -- Analyst
Okay. And then on the pricing side, I know it's harder for the first-fit business, but are you guys going out with any price increases on the aftermarket side?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
We returned to our typical pricing behavior, which would suggest to you that we took pricing actions effective January 1st across multiple businesses in the corporation. We did that as normal. And so we are in the normal type of pricing activities in our businesses. Should we see that inflationary pressure increase as in other inflationary cycles, we would not hesitate to take a secondary -- a second pricing action where needed anywhere in the world. But right now, we returned to our normal pricing behavior.
Adam Farley -- Stifel -- Analyst
Okay, thanks for taking the questions.
Operator
And your next question is from the line of Dillon Cumming with Morgan Stanley.
Dillon Cumming -- Morgan Stanley -- Analyst
Great, good morning, guys. Thanks for the question. Just wanted to ask a question on your on-road business. I think it's pretty clear that everyone is kind of expecting an inflection here over the next couple quarters. And I just wanted to ask, you've talked a little bit about in the past some of your exposure on the hydrogen side. So, as you look across your order book, are you seeing customers within your on-road business that are starting to look at more industrial air filtration offerings for hydrogen trucks or SECV on-road, just on the detail, I guess, it's mostly still kind of legacy SCE business?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
We would tell you that, across the hydrogen sectors, we see more customers talking about it, curious about it, working with our engineers to try to understand what would be necessary from an absorption and a filtration stand point of view. They've not announced formal programs to actually build powertrains in that sense, but it's certainly an increased level of conversation across the overall market, yes.
Dillon Cumming -- Morgan Stanley -- Analyst
Got it. That's helpful, Tod, thanks. And then maybe if I can spin the conversation back to margins. I'm asking this question in a little bit different way. But Scott, you were very clear. You outlined it at a number of times when you see kind of it in the back half and into next year talking about the price cost instead of comp, some mix headwind here. But you're obviously still giving a pretty strong margin guide. I think that's already been alluded to. Do you see the restructuring actions that you've taken that $8 million is fully offsetting those headwinds that you've outlined? Or do you still feel like there's some kind of cost creep in the back half that's kind of offsetting some of those restructuring tailwinds there?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Well, I mean we're really complete with the restructuring actions, so we don't foresee any more restructuring coming currently. So we wanted to show it with and without numbers, so we took the $14.8 million, and we pulled it out. And so all the guidance provided is on an adjusted metric basis. There'll be $1 million estimated of savings from the restructuring this year, and then an $8 million estimated savings once the actions are completed within the next 12 months.
So we feel good about that. So we project margins to improve. So we're trying to offset that by improving nicely in the back half, but those costs are behind us now. And we expect margin and op margin improvements into the third and fourth quarters of this year.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yes. And Dillon, this is Tod. It's important for everybody to understand that the restructuring actions that we took are complete and that we do not have any additional plans pending out there and that they have all been rolled out in the organization.
Dillon Cumming -- Morgan Stanley -- Analyst
Got it. That's helpful, thanks. Thanks, Tod. And then maybe to wrap it up. It's clear, and you guys outlined at the Investor Day in 2019, obviously, Donaldson is definitely a different company now than it was over the last industrial life cycle. You guys have taken a lot of cost out. You kind of realigned your capacity footprint, and you come out of some of these more attractive end markets. I guess, Scott, you alluded to kind of committing to profitable growth as revenues increase. But I guess, looking back versus the last cycle, are you kind of confident that you're not going to see the same level of margin choppiness as these inflationary prices impact the business? Or do you feel like it's still a bit too early to tell there?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
I think it's a little bit too early to tell, Dillon. When we talked about the inflationary pressures, clearly, the commodities that we have are steel. That's number one. Media is number two, call it. Oil-based products or urethanes, number three. You know what the long-term outlook for oil, a barrel of oil is, which would give us pressures. Media has its own pressures. And steel, frankly, right now is -- frankly, a bit unfair to the world, I would expect if you look at the indexes that are going out there. So there are clearly some headwinds that could crop up, that would provide choppiness to us.
But in the company, the more choppiness -- I think that could happen immediate is the mix situation that we typically get off of the OE-based balance that we're seeing on the engine. And so the greater the OE mix up that we get, that would likely provide some choppiness in the more near-term quarters with the inflationary headwinds being in the out quarters. That's standard work for us. We get it. But as you build your model, that would be the type of thing to consider.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay, great. Good job, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks.
Operator
And there are no further questions.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks, Tabitha. That concludes today's call. I want to thank everyone listening for your time and interest in Donaldson Company. And I hope that you, your families, and friends are safe and healthy. Goodbye.
Operator
[Operator Closing Remarks]
Duration: 53 minutes
Call participants:
Charles Damien Brady -- Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Bryan Blair -- Oppenheimer -- Analyst
Brian Drab -- William Blair -- Analyst
Richard Eastman -- Baird -- Analyst
Laurence Alexander -- Jefferies -- Analyst
Adam Farley -- Stifel -- Analyst
Dillon Cumming -- Morgan Stanley -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q2 2021 Earnings Call Feb 25, 2021, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Charles Damien Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Brian Drab -- William Blair -- Analyst Richard Eastman -- Baird -- Analyst Laurence Alexander -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Excluding the impact from our restructuring actions, gross margin was up 30 basis points from the prior year as lower raw material costs, including benefits from our procurement initiatives more than offset the increasing pressure from an unavoidable mix of sales. | Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Charles Damien Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Brian Drab -- William Blair -- Analyst Richard Eastman -- Baird -- Analyst Laurence Alexander -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Co (NYSE: DCI) Q2 2021 Earnings Call Feb 25, 2021, 10:00 a.m. Excluding the impact from our restructuring actions, gross margin was up 30 basis points from the prior year as lower raw material costs, including benefits from our procurement initiatives more than offset the increasing pressure from an unavoidable mix of sales. | Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Charles Damien Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Brian Drab -- William Blair -- Analyst Richard Eastman -- Baird -- Analyst Laurence Alexander -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Co (NYSE: DCI) Q2 2021 Earnings Call Feb 25, 2021, 10:00 a.m. Excluding the impact from our restructuring actions, gross margin was up 30 basis points from the prior year as lower raw material costs, including benefits from our procurement initiatives more than offset the increasing pressure from an unavoidable mix of sales. | Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Charles Damien Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Bryan Blair -- Oppenheimer -- Analyst Brian Drab -- William Blair -- Analyst Richard Eastman -- Baird -- Analyst Laurence Alexander -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Donaldson Co (NYSE: DCI) Q2 2021 Earnings Call Feb 25, 2021, 10:00 a.m. Overall, PowerCore sales increased about 9% in second quarter with strong growth in both first-fit and replacement parts. | 1bdbe18a-72c8-435e-8623-abe05352b5d4 |
709760.0 | 2021-02-25 00:00:00 UTC | Donaldson Q2 Profit Tops Estimates | DCI | https://www.nasdaq.com/articles/donaldson-q2-profit-tops-estimates-2021-02-25 | nan | nan | (RTTNews) - Donaldson Company, Inc. (DCI) reported second quarter adjusted earnings per share of $0.52 compared to $0.50, a year ago. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.51, for the quarter. Analysts' estimates typically exclude special items.
Second quarter net sales were $679.1 million, an increase of 2.6% from prior year. Analysts expected revenue of $653.96 million, for the quarter.
Donaldson expects fiscal 2021 adjusted EPS between $2.17 and $2.25. Total company sales are expected to increase between 5% and 8%. Donaldson expects to repurchase 1% to 2% of its outstanding shares during fiscal 2021.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Donaldson Company, Inc. (DCI) reported second quarter adjusted earnings per share of $0.52 compared to $0.50, a year ago. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.51, for the quarter. Second quarter net sales were $679.1 million, an increase of 2.6% from prior year. | (RTTNews) - Donaldson Company, Inc. (DCI) reported second quarter adjusted earnings per share of $0.52 compared to $0.50, a year ago. Donaldson expects fiscal 2021 adjusted EPS between $2.17 and $2.25. Total company sales are expected to increase between 5% and 8%. | (RTTNews) - Donaldson Company, Inc. (DCI) reported second quarter adjusted earnings per share of $0.52 compared to $0.50, a year ago. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.51, for the quarter. Analysts expected revenue of $653.96 million, for the quarter. | (RTTNews) - Donaldson Company, Inc. (DCI) reported second quarter adjusted earnings per share of $0.52 compared to $0.50, a year ago. Analysts' estimates typically exclude special items. Second quarter net sales were $679.1 million, an increase of 2.6% from prior year. | 42a438db-2658-4989-b368-b13428e887c4 |
709761.0 | 2021-02-08 00:00:00 UTC | Reminder - Donaldson (DCI) Goes Ex-Dividend Soon | DCI | https://www.nasdaq.com/articles/reminder-donaldson-dci-goes-ex-dividend-soon-2021-02-08 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 2/10/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.21, payable on 2/26/21. As a percentage of DCI's recent stock price of $61.73, this dividend works out to approximately 0.34%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.36% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of DCI shares, versus its 200 day moving average:
Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $61.93 as the 52 week high point — that compares with a last trade of $61.76.
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In Monday trading, Donaldson Co. Inc. shares are currently up about 0.4% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.36% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $61.93 as the 52 week high point — that compares with a last trade of $61.76. Looking at the universe of stocks we cover at Dividend Channel, on 2/10/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.21, payable on 2/26/21. | As a percentage of DCI's recent stock price of $61.73, this dividend works out to approximately 0.34%. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $61.93 as the 52 week high point — that compares with a last trade of $61.76. Looking at the universe of stocks we cover at Dividend Channel, on 2/10/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.21, payable on 2/26/21. | Looking at the universe of stocks we cover at Dividend Channel, on 2/10/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.21, payable on 2/26/21. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.36% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $61.93 as the 52 week high point — that compares with a last trade of $61.76. | Looking at the universe of stocks we cover at Dividend Channel, on 2/10/21, Donaldson Co. Inc. (Symbol: DCI) will trade ex-dividend, for its quarterly dividend of $0.21, payable on 2/26/21. As a percentage of DCI's recent stock price of $61.73, this dividend works out to approximately 0.34%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from DCI is likely to continue, and whether the current estimated yield of 1.36% on annualized basis is a reasonable expectation of annual yield going forward. | e707dbf1-299d-433b-89a4-3374a69e6f15 |
709762.0 | 2020-12-03 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-American Airlines, Palantir, PVH Corp | DCI | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-american-airlines-palantir-pvh-corp-2020-12-03 | nan | nan | Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and the Nasdaq touched all-time highs on Thursday as investors looked past bleak economic data, while remaining focused on a COVID-19 vaccine, with the blue-chip Dow getting a boost from Boeing shares. .N
At 12:46 p.m. ET, the Dow Jones Industrial Average .DJI was up 0.57% at 30,053.94. The S&P 500 .SPX was up 0.13% at 3,673.82 and the Nasdaq Composite .IXIC was up 0.50% at 12,411.48. The top three S&P 500 .PG.INX percentage gainers: ** American Airlines , up 9.5% ** Carnival Corp , up 9% ** Norwegian Cruise Line , up 8.9% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co , down 4.7% ** Cabot Oil & Gas Corp , down 3.5% ** Nasdaq Inc , down 3.2% The top three NYSE .PG.N percentage gainers: ** Phoenix New Media , up 117% ** Nesco Holdings Inc , up 55.2% ** Waddell & Reed , up 49.6% The top three NYSE .PL.N percentage losers: ** PreShares Ultra Bloomberg Natural Gas , down 16.6% ** Ihuman Inc , down 11.9% ** X Financial , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Ever-Glory International Group Inc , up 237.6% ** Kinnate Biopharma Inc , up 107.7% ** Lizhi Inc , up 93.6% The top Nasdaq .PL.O percentage losers: ** Splunk Inc , down 19.9% ** Lands End Inc , down 18.6% ** CrowdStrike CRWD.O: up 15.5%
BUZZ-Jumps on upbeat Q3 results, outlook
** Wadell & Reed WDR.N: up 49.6%
BUZZ-Extends gains on buyout deal
** Tesla TSLA.O: up 3.9%
BUZZ-Goldman Sachs raises rating to "buy"
** Owl Rock Capital ORCC.N: up 0.7%
BUZZ-Gains on talks to combine with Dyal Capital
** Veritone VERI.O: down 1.7%
BUZZ-Drops on equity offering
Shell RDSb.N: up 2.3%
BUZZ-Bernstein upgrades on 'attractive' cash flow momentum
** Express Inc EXPR.N: down 25.0%
BUZZ-Slumps on bigger-than-expected Q3 loss, revenue miss
** Iterum ITRM.O: up 39.5%
BUZZ-Rises on stake acquisition by RA Capital
** Zscaler ZS.O: up 24.7%
BUZZ-Jumps on upbeat Q1 results, outlook
** Progyny Inc PGNY.O: up 1.5%
BUZZ-Piper Sandler confident of growth prospects, raises PT
** Evofem Biosciences EVFM.O: up 2.3%
BUZZ-Rises on U.S. govt contract for birth control gel
** Codexis Inc CDXS.O: down 7.8%
BUZZ-Falls on $70 mln discounted stock offering
** Splunk Inc SPLK.O: down 19.9%
BUZZ-Down on disappointing Q3 results, brokerages cut PTs USN
** Square Inc SQ.N: up 2.0%
BUZZ-Rises as Evercore upgrades to 'outperform' on Cash App potential
** Eyenovia Inc EYEN.O: up 0.8%
BUZZ-Rises on FDA nod for eye treatment study
** The Michaels Companies MIK.O: up 13.8%
BUZZ-Rises on Q3 revenue, profit beat
** PayPal Holdings Inc PYPL.O: up 0.8%
BUZZ-Up as Evercore hikes PT on growth prospects
** Veritone Inc VERI.O: down 1.7%
BUZZ-Drops after pricing deep-discounted equity offering
** Lizhi Inc LIZI.O: up 93.6%
BUZZ-Doubles on tie-up with EV maker Xpeng Motors
** Inovio Pharmaceuticals Inc INO.O: up 5.5%
BUZZ-Rises on manufacturing deal for COVID-19 vaccine candidate
** Kroger Co KR.N: down 4.7%
BUZZ-Drops as Q3 sales miss estimates
** Okta OKTA.O: up 6.7%
BUZZ-Rises as multiple brokerages raise PT on strong Q3 results
** Dada Nexus DADA.O: down 10.7%
BUZZ-China's Dada Nexus slips on discounted equity offering
** Build-A-Bear Workshop BBW.N: up 14.8%
BUZZ-Soars as teddy bear maker swings to profit
** Kirkland's KIRK.O: up 24.1%
BUZZ-Gains on upbeat Q3 results
** Golar LNG GLNG.O: down 8.4%
BUZZ-Slides on stock offering
** Elastic NV ESTC.N: up 14.1%
BUZZ-Jumps on upbeat Q3 outlook
** Tesla TSLA.O: up 3.9%
BUZZ-Goldman Sachs raises to 'buy', sees upbeat outlook for EVs
** Enlivex ENLV.O: up 37.4%
BUZZ-Surges on positive early data from experimental COVID-19 therapy study
** Nesco Holdings NSCO.N: up 55.2%
BUZZ-Surges on $1.48 bln deal to buy Custom Truck One Source
** Five Below FIVE.O: up 4.4%
BUZZ-Gains on upbeat Q3 results, PT hikes
** GoPro Inc GPRO.O: up 4.2%
BUZZ-Rises on strong Black Friday & Cyber Monday sales
** Pfizer PFE.N: down 1.6%
BUZZ-Pfizer's vaccine sales to peak next year and flatten by 2023
** REX American Resources REX.N: up 6.5%
BUZZ-Up on Q3 profit compared to year-ago loss
** Spirit Airlines SAVE.N: up 8.0%
BUZZ-Up after co says flights will be 70% full in Q4
** Lands' End LE.O: down 18.6%
BUZZ-Sees worst day in over 8 months on dour outlook
** Duluth Holdings DLTH.O: down 10.6%
BUZZ-Slips on Q3 revenue miss
** Boeing BA.N: up 7.3%
BUZZ-Takes off after Ryanair places largest MAX order since 2018
** Snowflake Inc SNOW.N: up 14.9%
BUZZ-Reverses premarket losses to jump 11%
** Avid Bioservices CDMO.O: up 13.2%
BUZZ-Rises on Q2 rev beat, forecast raise
** Palantir PLTR.N: up 8.7%
BUZZ-Set to snap 4-day losing streak
** Guess GES.N: up 10.7%
BUZZ-Jumps as brokerages raise PT after Q3 revenue beat
** American Airlines AAL.O: up 9.5%
** United Airlines Holdings UAL.O: up 7.2%
** Delta Air Lines DAL.N: up 5.5%
** Norwegian Cruise Line NCLH.N: up 8.9%
** Carnival Corp : up 9.0%
** Royal Caribbean Cruises RCL.N: up 4.4%
BUZZ-Now boarding! Airlines and cruise lines surge on vaccine bets
** PVH Corp PVH.N: up 8.4%
BUZZ-Gains on upbeat Q3 results, brokerages raise PTs
** Donaldson Company DCI.N: up 1.7%
BUZZ-Rises on Q1 profit, revenue beat
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.25%
Consumer Discretionary
.SPLRCD
up 0.36%
Consumer Staples
.SPLRCS
down 0.22%
Energy
.SPNY
up 2.00%
Financial
.SPSY
down 0.09%
Health
.SPXHC
down 0.20%
Industrial
.SPLRCI
up 0.94%
Information Technology
.SPLRCT
up 0.16%
Materials
.SPLRCM
up 0.10%
Real Estate
.SPLRCR
up 0.79%
Utilities
.SPLRCU
down 0.93%
(Compiled by Shreyasee Raj and Trisha Roy)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Airlines and cruise lines surge on vaccine bets ** PVH Corp PVH.N: up 8.4% BUZZ-Gains on upbeat Q3 results, brokerages raise PTs ** Donaldson Company DCI.N: up 1.7% BUZZ-Rises on Q1 profit, revenue beat The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Nasdaq touched all-time highs on Thursday as investors looked past bleak economic data, while remaining focused on a COVID-19 vaccine, with the blue-chip Dow getting a boost from Boeing shares. The top three S&P 500 .PG.INX percentage gainers: ** American Airlines , up 9.5% ** Carnival Corp , up 9% ** Norwegian Cruise Line , up 8.9% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co , down 4.7% ** Cabot Oil & Gas Corp , down 3.5% ** Nasdaq Inc , down 3.2% The top three NYSE .PG.N percentage gainers: ** Phoenix New Media , up 117% ** Nesco Holdings Inc , up 55.2% ** Waddell & Reed , up 49.6% The top three NYSE .PL.N percentage losers: ** PreShares Ultra Bloomberg Natural Gas , down 16.6% ** Ihuman Inc , down 11.9% ** X Financial , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Ever-Glory International Group Inc , up 237.6% ** Kinnate Biopharma Inc , up 107.7% ** Lizhi Inc , up 93.6% The top Nasdaq .PL.O percentage losers: ** Splunk Inc , down 19.9% ** Lands End Inc , down 18.6% ** CrowdStrike CRWD.O: up 15.5% BUZZ-Jumps on upbeat Q3 results, outlook ** Wadell & Reed WDR.N: up 49.6% BUZZ-Extends gains on buyout deal ** Tesla TSLA.O: up 3.9% BUZZ-Goldman Sachs raises rating to "buy" ** Owl Rock Capital ORCC.N: up 0.7% BUZZ-Gains on talks to combine with Dyal Capital ** Veritone VERI.O: down 1.7% BUZZ-Drops on equity offering Shell RDSb.N: up 2.3% BUZZ-Bernstein upgrades on 'attractive' cash flow momentum ** Express Inc EXPR.N: down 25.0% BUZZ-Slumps on bigger-than-expected Q3 loss, revenue miss ** Iterum ITRM.O: up 39.5% BUZZ-Rises on stake acquisition by RA Capital ** Zscaler ZS.O: up 24.7% BUZZ-Jumps on upbeat Q1 results, outlook ** Progyny Inc PGNY.O: up 1.5% BUZZ-Piper Sandler confident of growth prospects, raises PT ** Evofem Biosciences EVFM.O: up 2.3% BUZZ-Rises on U.S. govt contract for birth control gel ** Codexis Inc CDXS.O: down 7.8% BUZZ-Falls on $70 mln discounted stock offering ** Splunk Inc SPLK.O: down 19.9% BUZZ-Down on disappointing Q3 results, brokerages cut PTs USN ** Square Inc SQ.N: up 2.0% BUZZ-Rises as Evercore upgrades to 'outperform' on Cash App potential ** Eyenovia Inc EYEN.O: up 0.8% BUZZ-Rises on FDA nod for eye treatment study ** The Michaels Companies MIK.O: up 13.8% BUZZ-Rises on Q3 revenue, profit beat ** PayPal Holdings Inc PYPL.O: up 0.8% BUZZ-Up as Evercore hikes PT on growth prospects ** Veritone Inc VERI.O: down 1.7% BUZZ-Drops after pricing deep-discounted equity offering ** Lizhi Inc LIZI.O: up 93.6% BUZZ-Doubles on tie-up with EV maker Xpeng Motors ** Inovio Pharmaceuticals Inc INO.O: up 5.5% BUZZ-Rises on manufacturing deal for COVID-19 vaccine candidate ** Kroger Co KR.N: down 4.7% BUZZ-Drops as Q3 sales miss estimates ** Okta OKTA.O: up 6.7% BUZZ-Rises as multiple brokerages raise PT on strong Q3 results ** Dada Nexus DADA.O: down 10.7% BUZZ-China's Dada Nexus slips on discounted equity offering ** Build-A-Bear Workshop BBW.N: up 14.8% BUZZ-Soars as teddy bear maker swings to profit ** Kirkland's KIRK.O: up 24.1% BUZZ-Gains on upbeat Q3 results ** Golar LNG GLNG.O: down 8.4% BUZZ-Slides on stock offering ** Elastic NV ESTC.N: up 14.1% BUZZ-Jumps on upbeat Q3 outlook ** Tesla TSLA.O: up 3.9% BUZZ-Goldman Sachs raises to 'buy', sees upbeat outlook for EVs ** Enlivex ENLV.O: up 37.4% BUZZ-Surges on positive early data from experimental COVID-19 therapy study ** Nesco Holdings NSCO.N: up 55.2% BUZZ-Surges on $1.48 bln deal to buy Custom Truck One Source ** Five Below FIVE.O: up 4.4% BUZZ-Gains on upbeat Q3 results, PT hikes ** GoPro Inc GPRO.O: up 4.2% BUZZ-Rises on strong Black Friday & Cyber Monday sales ** Pfizer PFE.N: down 1.6% BUZZ-Pfizer's vaccine sales to peak next year and flatten by 2023 ** REX American Resources REX.N: up 6.5% BUZZ-Up on Q3 profit compared to year-ago loss ** Spirit Airlines SAVE.N: up 8.0% BUZZ-Up after co says flights will be 70% full in Q4 ** Lands' End LE.O: down 18.6% BUZZ-Sees worst day in over 8 months on dour outlook ** Duluth Holdings DLTH.O: down 10.6% BUZZ-Slips on Q3 revenue miss ** Boeing BA.N: up 7.3% BUZZ-Takes off after Ryanair places largest MAX order since 2018 ** Snowflake Inc SNOW.N: up 14.9% BUZZ-Reverses premarket losses to jump 11% ** Avid Bioservices CDMO.O: up 13.2% BUZZ-Rises on Q2 rev beat, forecast raise ** Palantir PLTR.N: up 8.7% BUZZ-Set to snap 4-day losing streak ** Guess GES.N: up 10.7% BUZZ-Jumps as brokerages raise PT after Q3 revenue beat ** American Airlines AAL.O: up 9.5% ** United Airlines Holdings UAL.O: up 7.2% ** Delta Air Lines DAL.N: up 5.5% ** Norwegian Cruise Line NCLH.N: up 8.9% ** Carnival Corp : up 9.0% ** Royal Caribbean Cruises RCL.N: up 4.4% BUZZ-Now boarding! | Airlines and cruise lines surge on vaccine bets ** PVH Corp PVH.N: up 8.4% BUZZ-Gains on upbeat Q3 results, brokerages raise PTs ** Donaldson Company DCI.N: up 1.7% BUZZ-Rises on Q1 profit, revenue beat The 11 major S&P 500 sectors: Communication Services The top three S&P 500 .PG.INX percentage gainers: ** American Airlines , up 9.5% ** Carnival Corp , up 9% ** Norwegian Cruise Line , up 8.9% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co , down 4.7% ** Cabot Oil & Gas Corp , down 3.5% ** Nasdaq Inc , down 3.2% The top three NYSE .PG.N percentage gainers: ** Phoenix New Media , up 117% ** Nesco Holdings Inc , up 55.2% ** Waddell & Reed , up 49.6% The top three NYSE .PL.N percentage losers: ** PreShares Ultra Bloomberg Natural Gas , down 16.6% ** Ihuman Inc , down 11.9% ** X Financial , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Ever-Glory International Group Inc , up 237.6% ** Kinnate Biopharma Inc , up 107.7% ** Lizhi Inc , up 93.6% The top Nasdaq .PL.O percentage losers: ** Splunk Inc , down 19.9% ** Lands End Inc , down 18.6% ** CrowdStrike CRWD.O: up 15.5% BUZZ-Jumps on upbeat Q3 results, outlook ** Wadell & Reed WDR.N: up 49.6% BUZZ-Extends gains on buyout deal ** Tesla TSLA.O: up 3.9% BUZZ-Goldman Sachs raises rating to "buy" ** Owl Rock Capital ORCC.N: up 0.7% BUZZ-Gains on talks to combine with Dyal Capital ** Veritone VERI.O: down 1.7% BUZZ-Drops on equity offering Shell RDSb.N: up 2.3% BUZZ-Bernstein upgrades on 'attractive' cash flow momentum ** Express Inc EXPR.N: down 25.0% BUZZ-Slumps on bigger-than-expected Q3 loss, revenue miss ** Iterum ITRM.O: up 39.5% BUZZ-Rises on stake acquisition by RA Capital ** Zscaler ZS.O: up 24.7% BUZZ-Jumps on upbeat Q1 results, outlook ** Progyny Inc PGNY.O: up 1.5% BUZZ-Piper Sandler confident of growth prospects, raises PT ** Evofem Biosciences EVFM.O: up 2.3% BUZZ-Rises on U.S. govt contract for birth control gel ** Codexis Inc CDXS.O: down 7.8% BUZZ-Falls on $70 mln discounted stock offering ** Splunk Inc SPLK.O: down 19.9% BUZZ-Down on disappointing Q3 results, brokerages cut PTs USN ** Square Inc SQ.N: up 2.0% BUZZ-Rises as Evercore upgrades to 'outperform' on Cash App potential ** Eyenovia Inc EYEN.O: up 0.8% BUZZ-Rises on FDA nod for eye treatment study ** The Michaels Companies MIK.O: up 13.8% BUZZ-Rises on Q3 revenue, profit beat ** PayPal Holdings Inc PYPL.O: up 0.8% BUZZ-Up as Evercore hikes PT on growth prospects ** Veritone Inc VERI.O: down 1.7% BUZZ-Drops after pricing deep-discounted equity offering ** Lizhi Inc LIZI.O: up 93.6% BUZZ-Doubles on tie-up with EV maker Xpeng Motors ** Inovio Pharmaceuticals Inc INO.O: up 5.5% BUZZ-Rises on manufacturing deal for COVID-19 vaccine candidate ** Kroger Co KR.N: down 4.7% BUZZ-Drops as Q3 sales miss estimates ** Okta OKTA.O: up 6.7% BUZZ-Rises as multiple brokerages raise PT on strong Q3 results ** Dada Nexus DADA.O: down 10.7% BUZZ-China's Dada Nexus slips on discounted equity offering ** Build-A-Bear Workshop BBW.N: up 14.8% BUZZ-Soars as teddy bear maker swings to profit ** Kirkland's KIRK.O: up 24.1% BUZZ-Gains on upbeat Q3 results ** Golar LNG GLNG.O: down 8.4% BUZZ-Slides on stock offering ** Elastic NV ESTC.N: up 14.1% BUZZ-Jumps on upbeat Q3 outlook ** Tesla TSLA.O: up 3.9% BUZZ-Goldman Sachs raises to 'buy', sees upbeat outlook for EVs ** Enlivex ENLV.O: up 37.4% BUZZ-Surges on positive early data from experimental COVID-19 therapy study ** Nesco Holdings NSCO.N: up 55.2% BUZZ-Surges on $1.48 bln deal to buy Custom Truck One Source ** Five Below FIVE.O: up 4.4% BUZZ-Gains on upbeat Q3 results, PT hikes ** GoPro Inc GPRO.O: up 4.2% BUZZ-Rises on strong Black Friday & Cyber Monday sales ** Pfizer PFE.N: down 1.6% BUZZ-Pfizer's vaccine sales to peak next year and flatten by 2023 ** REX American Resources REX.N: up 6.5% BUZZ-Up on Q3 profit compared to year-ago loss ** Spirit Airlines SAVE.N: up 8.0% BUZZ-Up after co says flights will be 70% full in Q4 ** Lands' End LE.O: down 18.6% BUZZ-Sees worst day in over 8 months on dour outlook ** Duluth Holdings DLTH.O: down 10.6% BUZZ-Slips on Q3 revenue miss ** Boeing BA.N: up 7.3% BUZZ-Takes off after Ryanair places largest MAX order since 2018 ** Snowflake Inc SNOW.N: up 14.9% BUZZ-Reverses premarket losses to jump 11% ** Avid Bioservices CDMO.O: up 13.2% BUZZ-Rises on Q2 rev beat, forecast raise ** Palantir PLTR.N: up 8.7% BUZZ-Set to snap 4-day losing streak ** Guess GES.N: up 10.7% BUZZ-Jumps as brokerages raise PT after Q3 revenue beat ** American Airlines AAL.O: up 9.5% ** United Airlines Holdings UAL.O: up 7.2% ** Delta Air Lines DAL.N: up 5.5% ** Norwegian Cruise Line NCLH.N: up 8.9% ** Carnival Corp : up 9.0% ** Royal Caribbean Cruises RCL.N: up 4.4% BUZZ-Now boarding! down 0.93% (Compiled by Shreyasee Raj and Trisha Roy) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Airlines and cruise lines surge on vaccine bets ** PVH Corp PVH.N: up 8.4% BUZZ-Gains on upbeat Q3 results, brokerages raise PTs ** Donaldson Company DCI.N: up 1.7% BUZZ-Rises on Q1 profit, revenue beat The 11 major S&P 500 sectors: Communication Services The top three S&P 500 .PG.INX percentage gainers: ** American Airlines , up 9.5% ** Carnival Corp , up 9% ** Norwegian Cruise Line , up 8.9% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co , down 4.7% ** Cabot Oil & Gas Corp , down 3.5% ** Nasdaq Inc , down 3.2% The top three NYSE .PG.N percentage gainers: ** Phoenix New Media , up 117% ** Nesco Holdings Inc , up 55.2% ** Waddell & Reed , up 49.6% The top three NYSE .PL.N percentage losers: ** PreShares Ultra Bloomberg Natural Gas , down 16.6% ** Ihuman Inc , down 11.9% ** X Financial , down 8.9% The top three Nasdaq .PG.O percentage gainers: ** Ever-Glory International Group Inc , up 237.6% ** Kinnate Biopharma Inc , up 107.7% ** Lizhi Inc , up 93.6% The top Nasdaq .PL.O percentage losers: ** Splunk Inc , down 19.9% ** Lands End Inc , down 18.6% ** CrowdStrike CRWD.O: up 15.5% BUZZ-Jumps on upbeat Q3 results, outlook ** Wadell & Reed WDR.N: up 49.6% BUZZ-Extends gains on buyout deal ** Tesla TSLA.O: up 3.9% BUZZ-Goldman Sachs raises rating to "buy" ** Owl Rock Capital ORCC.N: up 0.7% BUZZ-Gains on talks to combine with Dyal Capital ** Veritone VERI.O: down 1.7% BUZZ-Drops on equity offering Shell RDSb.N: up 2.3% BUZZ-Bernstein upgrades on 'attractive' cash flow momentum ** Express Inc EXPR.N: down 25.0% BUZZ-Slumps on bigger-than-expected Q3 loss, revenue miss ** Iterum ITRM.O: up 39.5% BUZZ-Rises on stake acquisition by RA Capital ** Zscaler ZS.O: up 24.7% BUZZ-Jumps on upbeat Q1 results, outlook ** Progyny Inc PGNY.O: up 1.5% BUZZ-Piper Sandler confident of growth prospects, raises PT ** Evofem Biosciences EVFM.O: up 2.3% BUZZ-Rises on U.S. govt contract for birth control gel ** Codexis Inc CDXS.O: down 7.8% BUZZ-Falls on $70 mln discounted stock offering ** Splunk Inc SPLK.O: down 19.9% BUZZ-Down on disappointing Q3 results, brokerages cut PTs USN ** Square Inc SQ.N: up 2.0% BUZZ-Rises as Evercore upgrades to 'outperform' on Cash App potential ** Eyenovia Inc EYEN.O: up 0.8% BUZZ-Rises on FDA nod for eye treatment study ** The Michaels Companies MIK.O: up 13.8% BUZZ-Rises on Q3 revenue, profit beat ** PayPal Holdings Inc PYPL.O: up 0.8% BUZZ-Up as Evercore hikes PT on growth prospects ** Veritone Inc VERI.O: down 1.7% BUZZ-Drops after pricing deep-discounted equity offering ** Lizhi Inc LIZI.O: up 93.6% BUZZ-Doubles on tie-up with EV maker Xpeng Motors ** Inovio Pharmaceuticals Inc INO.O: up 5.5% BUZZ-Rises on manufacturing deal for COVID-19 vaccine candidate ** Kroger Co KR.N: down 4.7% BUZZ-Drops as Q3 sales miss estimates ** Okta OKTA.O: up 6.7% BUZZ-Rises as multiple brokerages raise PT on strong Q3 results ** Dada Nexus DADA.O: down 10.7% BUZZ-China's Dada Nexus slips on discounted equity offering ** Build-A-Bear Workshop BBW.N: up 14.8% BUZZ-Soars as teddy bear maker swings to profit ** Kirkland's KIRK.O: up 24.1% BUZZ-Gains on upbeat Q3 results ** Golar LNG GLNG.O: down 8.4% BUZZ-Slides on stock offering ** Elastic NV ESTC.N: up 14.1% BUZZ-Jumps on upbeat Q3 outlook ** Tesla TSLA.O: up 3.9% BUZZ-Goldman Sachs raises to 'buy', sees upbeat outlook for EVs ** Enlivex ENLV.O: up 37.4% BUZZ-Surges on positive early data from experimental COVID-19 therapy study ** Nesco Holdings NSCO.N: up 55.2% BUZZ-Surges on $1.48 bln deal to buy Custom Truck One Source ** Five Below FIVE.O: up 4.4% BUZZ-Gains on upbeat Q3 results, PT hikes ** GoPro Inc GPRO.O: up 4.2% BUZZ-Rises on strong Black Friday & Cyber Monday sales ** Pfizer PFE.N: down 1.6% BUZZ-Pfizer's vaccine sales to peak next year and flatten by 2023 ** REX American Resources REX.N: up 6.5% BUZZ-Up on Q3 profit compared to year-ago loss ** Spirit Airlines SAVE.N: up 8.0% BUZZ-Up after co says flights will be 70% full in Q4 ** Lands' End LE.O: down 18.6% BUZZ-Sees worst day in over 8 months on dour outlook ** Duluth Holdings DLTH.O: down 10.6% BUZZ-Slips on Q3 revenue miss ** Boeing BA.N: up 7.3% BUZZ-Takes off after Ryanair places largest MAX order since 2018 ** Snowflake Inc SNOW.N: up 14.9% BUZZ-Reverses premarket losses to jump 11% ** Avid Bioservices CDMO.O: up 13.2% BUZZ-Rises on Q2 rev beat, forecast raise ** Palantir PLTR.N: up 8.7% BUZZ-Set to snap 4-day losing streak ** Guess GES.N: up 10.7% BUZZ-Jumps as brokerages raise PT after Q3 revenue beat ** American Airlines AAL.O: up 9.5% ** United Airlines Holdings UAL.O: up 7.2% ** Delta Air Lines DAL.N: up 5.5% ** Norwegian Cruise Line NCLH.N: up 8.9% ** Carnival Corp : up 9.0% ** Royal Caribbean Cruises RCL.N: up 4.4% BUZZ-Now boarding! down 0.25% Consumer Discretionary | Airlines and cruise lines surge on vaccine bets ** PVH Corp PVH.N: up 8.4% BUZZ-Gains on upbeat Q3 results, brokerages raise PTs ** Donaldson Company DCI.N: up 1.7% BUZZ-Rises on Q1 profit, revenue beat The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Nasdaq touched all-time highs on Thursday as investors looked past bleak economic data, while remaining focused on a COVID-19 vaccine, with the blue-chip Dow getting a boost from Boeing shares. ET, the Dow Jones Industrial Average .DJI was up 0.57% at 30,053.94. | e33dfb6a-fc6e-4796-8eb4-ee12d1622355 |
709763.0 | 2020-12-03 00:00:00 UTC | Donaldson Co (DCI) Q1 2021 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q1-2021-earnings-call-transcript-2020-12-03 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q1 2021 Earnings Call
Dec 3, 2020, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Donaldson's First Quarter 2021 Earnings Conference Call. [Operator Instructions]
I would now like to turn the call over to Charley Brady, Director of Investor Relations. Thank you. Please go ahead.
Charley Brady -- Investor Relations
Good morning. Thanks for joining Donaldson's first quarter 2021earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; Scott Robinson, Chief Financial Officer and Brad Pogalz who you all know. This morning, Tod and Scott Will provide a summary of our first quarter performance along with an update on key considerations for fiscal 2021.
During today's call, we Will also reference non-GAAP metrics. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release.
Finally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, everyone. I want to start by welcoming Charley to the team. He joined Donaldson last week after two decades on the sell side, which included 15 years of covering our company. He already knows us well, so our Investor Relations program is in good hands. Welcome, Charley.
Turning to the quarter, we feel good about our results. First quarter sales were up 3% sequentially, which is not typical seasonality, signaling that the worst of the impact from the pandemic on our business may be behind us. Sales of replacement parts outperformed first-fit by a wide margin providing valuable stability, and we saw continued evidence of share gains in strategically important markets and geographies helped in part by our robust portfolio of innovative products. First quarter profit performance was another highlight. Gross margin was up 60 basis points from the prior year resulting in the highest first quarter gross margin in four years, and the best sequential improvement in at least a decade.
We reduced operating expenses by 5% while maintaining investments in our strategic growth priorities, particularly as they relate to the Industrial segment. And altogether, we had a decremental operating margin of only 4% which we view as very positive given the uneven economic environment. Finally, our company remains in a strong financial position. We had excellent cash conversion during the quarter and our balance sheet is solid. We're on track to deliver our strategic and financial objectives in fiscal '21 and we'll talk about those plans later in the call. But first, let me provide some additional color on recent sales trends.
Total sales were down 5.4% from prior year or 6.4% in local currency. In the Engine segment more than a third of the decline came from Aerospace and Defense, due largely to the significant impact from the pandemic on commercial aerospace. We have a great team and strong customer relationships, so we expect our Aerospace business Will recover. In the meantime, we are pursuing optimization initiatives to put our cost structure on a firmer footing during this rough patch. In our other Engine businesses trends seem to be improving. On-Road sales were down 21% in the quarter, which is still a steep decline, but notably better than the past few quarters. Although Class 8 truck production in the US remains depressed, order rates are increasing and third party forecast for the next calendar year suggest the Class 8 recovery is on the horizon. Should that happen, we believe our strong position with OEM customers would give us nice momentum in the On-Road first-fit market.
In Off-Road, trends were mixed by region. In Europe, sales from new Exhaust and Emissions programs were not yet enough to offset the lower rate of production for programs already in place. In the US, lower production of construction and mining equipment is still a headwind for Off-Road but we had a meaningful sequential increase in first quarter and year-over-year trends are also improving. We had a very strong quarter in China with Off-Road sales up more than 50%. Their economic recovery appears to be under way and we are also benefiting from new relationships with Chinese manufacturers that want our high-tech products, including PowerCore. China [Indecipherable] is more heavy duty equipment than any other country in the world and our team is doing an excellent job building and strengthening relationships with large local customers. While we expect to have some variability in quarter-to-quarter trends, we are also confident that we have a long runway for growth in China.
First quarter sales and aftermarket were down only slightly from the prior year and they were up 6% from the prior quarter. All of the year-over-year decline in aftermarket came from the US. The independent channel is still being impacted by the oil and gas slowdown, which we partially offset with pricing actions implemented earlier this calendar year. And large OE customers are still tweaking inventory to match demand. Outside the US, aftermarket performed very well. In Europe, first quarter sales were up 4% in local currency as conditions improved in Western Europe. In China, first quarter sales of Engine aftermarket were up more than 30% reflecting strong growth in both channels. We are gaining share with the new OEM customers and end users are paying greater attention to equipment maintenance.
Part of our success in China is due to PowerCore which is growing rapidly from a small base. Importantly, PowerCore continues to do well outside of China. Global sales of PowerCore replacement parts were up in the low single-digits last quarter and we set another record. PowerCore is our most mature example of how our razor to sell razor blade strategy works and the brand is still going strong after 20 years.
Turning now to the Industrial segment. First quarter sales were down about 6% including a benefit from currency of about 2%. The decline was driven primarily by Industrial Filtration Solutions or IFS. The pandemic is creating a headwind in terms of equipment utilization and a lower willingness to invest. Quoting activity for new dust collectors was down in the first quarter and the quote-to-order cycle remains elongated. Generally, customers are focusing on must do projects, while deferring expansion in productivity investments to a future date. With the market under pressure, we are focused on building our brand and gaining share. We have strengthened our capabilities related to market analysis and virtual selling and our e-commerce platform gives us incredible reach. We also continue to leverage our technology advantage and we are encouraged by the opportunity that presents in an underserved market like China.
For quarter -- first quarter sales of dust collectors were up modestly in China and the needs in that region are changing in our favor. Some manufacturers are dealing with compliance upgrades related to the Blue Sky initiative, while others are going beyond the minimum requirements and striving for better air quality. That shift represents an exciting opportunity for us, so we Will continue to invest for growth in that region.
Process Filtration for the food and beverage market is another exciting opportunity. We launched our LifeTec brand filter late in 2016, and we have seen tremendous growth since then. Sales of Process Filtration parts were up again last quarter with a low single-digit increase which partially offset the pandemic related pressure on sales of new equipment. Our strategy for growing Process Filtration is solid. We are focused on winning new contracts with large global manufacturers which gives us the opportunity to sell their plants. Some of these customers have hundreds of plants, so we are once again doubling our sales team for Process Filtration. We also made an organizational change to better align our team with the needs of our food and beverage customers. While these type of optimization initiatives are standard work for us, I'm calling it out because during our fourth quarter call, we said Process Filtration sales were about $50 million of fiscal 2020. Following our reorganization that number is more like $68 million. Our IFS numbers are unchanged, but we wanted you all to have the right baseline as we talk about year-over-year trends in this exciting business.
Trends across the balance of our Industrial segment were mixed. Sales of Gas Turbine Systems were up 11%, driven by strong growth of replacement parts and we continue to gain share. In Special Applications, we faced pressure from the secular decline in the disk drive market, combined with lower sales of our membrane products. We partially offset the decline with strength in our Venting Solutions business, which is also benefiting from share gains as we expand into new markets including the auto industry.
Overall, we see strong evidence of how our diverse business model is providing some insulation from the pandemic. We are gaining share in strategically important markets and geographies. We are investing to keep the momentum and we continue to show progress on our initiatives to increase gross margin. I'll talk more about our longer term plans in a few minutes.
So, I'll now turn the call over to Scott. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Good morning, everyone. I also want to welcome Charley. He's got great perspective and he is a strong addition to our team. We are excited to have him join us and I hope you all Will have a chance to connect or reconnect with him soon.
Now turning to the quarter, like Tod said, we are pleased with our results. Economic conditions were better than what we had in the fourth quarter and we made progress on our strategic initiatives. First quarter margin was a highlight for us in terms of year-over-year and quarter-over-quarter performance. Versus the prior year operating margin was up 50 basis points, driven entirely by gross margin. That translates to a decremental margin of 4%, but that's probably not the level to expect over time. For a better comparison, I'd point you to our sequential trends. First quarter sales were up 3% from the fourth quarter and our operating profit was up almost 6%. That yields in incremental margin of 24.5%, which is in line with our longer term targets from Investor Day and several points ahead of our historic average. As I've said many times, we are committed to increasing levels of profitability and increasing sales, and we have solid plans to keep driving margins higher.
We saw evidence of those actions last quarter. So let me share some details. First quarter gross margin increased 60 basis points to 35% despite the impact from the loss of leverage and higher depreciation. On the other hand, gross margin benefited from lower raw material costs. Our procurement team has done an excellent job capturing cost improvements by working with existing suppliers and identifying new ones, which added to the benefits from lower market prices. We also had a favorable mix of sales in the first quarter, specifically aggregate sales of our Advance and Accelerate portfolio which includes a significant portion of our replacement part sales along with many of our higher tech businesses outperformed the company and our Advance and Accelerate portfolio also comes with a higher average gross margin. As we continue to drive investments into these businesses, we are shifting more weight toward higher margin categories. Over time, mix should be a constant factor in driving up our gross margin.
Our strong gross margin performance in the first quarter was complemented by disciplined expense management. Operating expenses were down 5% from the prior year, which resulted in a slight increase as a rate of sales. We had significant savings in discretionary categories like travel and entertainment, due in large part to pandemic related restrictions. At the same time, we continue to invest in our strategic priorities. We are building teams and adding resources to areas like R&D, Process Filtration, Connected Solutions and dust collection. These investments are tilted heavily toward the Industrial segment, which contains most of the Advance and Accelerate businesses. Given that dynamic, we are not surprised that the first quarter Industrial profit margin was down slightly. Importantly first quarter gross margin was up in both segments, so we feel good about where we ended. As our investments translate to grow, we expect our margin and return on invested capital Will go up over time.
Moving down the P&L, first quarter other expense of $1.5 million compared with income in the prior year of $2.6 million. The delta was largely due to a pension charge and the impact of certain charitable options. During the first quarter we contributed to Donaldson Foundation and there was also a charge for securing face masks that were billed to frontline workers in our communities. We generally spread these contributions over our fiscal year, so the impact is more timing related than a change in trajectory for us.
I also want to share some highlights of our capital deployed in the first quarter. As expected capital expenditures dropped meaningfully from the prior year, with our large projects related to capacity expansion mostly complete, we are turning our attention to optimization and productivity initiatives. We returned more than $40 million of cash to shareholders last quarter, including a repurchase of 0.3% of outstanding shares and dividends of $27 million. We have paid a dividend every quarter for 65 years and we are on track to hit another milestone next month. January marks the five-year anniversary of when we were added to the S&P High Yield Dividend Aristocrats Fund. So this anniversary signals that we have been increased our dividend annually for the past 25 years. We are proud of this record and we intend to maintain our standing in this elite group.
As we look to the balance of fiscal '21, there are still plenty of reasons to be cautious. The magnitude and ultimate impact from the pandemic are still unknown and we continue to face uneven economic conditions. Given these dynamics, we feel prudent to hold back on detailed guidance, but we did want to expand our information provided during our lastearnings call In terms of sales, we expect second quarter Will end between a 4% decline and a 1% increase from the prior year and that means sales should be up sequentially from the first quarter. We also expect a year-over-year sales increase in the second half of fiscal '21, and sales are planned to migrate toward a more typical seasonality meaning that second half Will carry slightly more weight than the first.
We are modeling a full year increase in operating margin driven by gross margin. Our productivity initiatives should ramp up over the fiscal year and we expect benefits from lower raw material costs and mix Will still contribute to a higher gross margin, but to a lesser extent than what we have been seeing. Of course the caveat to the gross margin impact from a strong recovery, while we Will be happy of our first-fit businesses accelerate beyond our expectations, that could create a scenario or mix close from a tailwind to a headwind. That's obviously a high-grade problem and we would address situation if that's the case.
As the rate of sales, we intend to keep fiscal '21 operating expenses about flat with the prior year. Specifically, the second half of the year, we are still expecting headwinds from higher incentive compensation and planning a return to a more normal operating environment, we would anticipate year-over-year increase in expense categories that have been significantly depressed by the pandemic. But as always, we are exploring optimization initiatives to offset these headwinds. I am confident that we can maintain an appropriate balancing -- balance, allowing us to invest in our longer term growth opportunities by driving efficiency elsewhere in the company.
For our full year tax rate, we are now expecting something between 24% and 26%. The forecast oriented is more now than last quarter, simply due to having a clarity with the first quarter complete. There were no changes to our other planning assumptions. So let me share some context. Capital expenditures are planned meaningfully below last year, reflecting the completion of our multi-year investment cycle. Our long-term target is plus or minus 3% of sales and we would expect our capex to be below that level this year. We plan to repurchase at least 1% of our outstanding shares which Will opt dilutions [Phonetic] with stock based compensation. Should we see incremental improvement in the economic environment, it is reasonable to expect that we Will repurchase more than 1% this fiscal year.
Finally, our cash conversion is still expected to exceed 100%. We had a very strong cash conversion in the first quarter driven by reduced working capital, lower capital expenditures and lower bonus payouts. As sales trends improve versus the first quarter, we would expect our cash conversion to drift down a bit over the year, which is typical of a more favorable selling environment. Stepping back to the numbers, our objectives for the year are consistent with what I shared last quarter, we Will invest for growth and market share gains in our Advance and Accelerate portfolio, execute productivity initiatives that Will strengthen gross margin, maintain control of operating expenses including the implementation of select optimization initiatives and protect our strong financial position through disciplined capital deployment and working capital management.
As I close my section, I want to take a moment to thank my colleagues around the world for their continued resilience. We had a solid start to the fiscal year, despite the pandemic fatigue [Phonetic] that I know everyone is feeling. I am proud of what you all accomplished and I look forward to continued success. I also want to thank Brad for his great contribution and his friendship. I wish you and your family my best as you move to Europe. The good news is we Will still work together.
With no [Indecipherable] out of the way, I'll turn the call now back to Tod.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. This year we have a straightforward plan. We play offense where we can and defense where we must. Our defensive efforts are all about managing costs and one way we are doing that is through optimization. The most significant example relates to productivity improvements in our plants, which are being enabled by the capital investments we made over the last two years. But it's not just about large projects for us, our employees have a continuous improvement mindset and our culture has a shared commitment to operating efficiently. Our teams are consistently finding ways to leverage tools and technology and their work allows us to deploy more resources to support our strategic growth priorities.
As we look forward, we are excited about those opportunities. For example, food and beverage is the first step on our journey into life sciences. We expanded production capabilities of our LifeTec filters and our new R&D facility in Minnesota, we believe we are in an excellent position to press forward. At the same time we're pressing forward in our more mature markets, driven by our spirit of innovation, we continue to bring new technology to applications that have been using old technology for a long time. A great example is a recently announced product for Baghouse dust collection. Baghouses have used the same low-tech solution for decades, and they represent about half of the $3 billion to $4 billion industrial air filtration market. Our game-changing product the Rugged Pleat Collector delivers improved performance and lower cost of operation for customers, heavy-duty applications like mining, wood working and grain processing. So we Will deploy new technology to gain share in this significant market.
In the Engine segment, we continue to lead with technology which is critical given the size of the opportunity. We are currently competing for projects with an aggregate 10 year value of more than $3.5 billion, telling us the market for innovation is healthy and we have a significant opportunity to win new business. Our OE customers are working to improve fuel economy and reduce emissions from the diesel engine and they are also increasingly interested in growing their parts business. Our products meet both of those needs. We have a multi-decade track record of providing industry-leading performance and we can also show that our technical and design characteristics help our customers retain their parts business.
Based on the opportunities in front of us, we believe the diesel engine Will remain a valuable part of our growth story for a long time, but we also know the market is changing. So our focus on growing the Industrial segment, while expanding our global share of the Engine market, including new technologies related to air filtration for hydrogen fuel cells puts us in a strong position for long-term growth.
I also want to touch on the role of acquisitions in our growth formula. With capital markets recovering from the pandemic, we've been getting more questions lately about our philosophy. So I thought I'd take a minute to realign everyone. Our focus is very consistent with what we laid out 18 months ago at our Investor Day. At a high level, we remain a disciplined buyer. We're most interested in new capabilities and technologies, especially those that accelerate our entrance into strategically important markets. And we are targeting companies that Will be accretive to our EBITDA margin. As always, we Will pursue companies that align with our long-term plans versus simply buying share.
The filtration market is split between a small number of large companies, us included and a significant number of smaller companies. The timing for executing an acquisition is always uncertain, so we Will continue to work our process. Additionally, we recognize and appreciate that filtration is a high value market. So our goal is finding the best opportunity at a reasonable price. With a robust acquisition strategy and significant organic growth options we feel confident that we can continue to drive strong returns on invested capital for a long time to come.
Before closing, I want to thank our employees for their continued commitment to our company. The level of global coordination and collaboration continues to impress me and I believe we have done very well during the pandemic as a business and as a culture. To the Donaldson employees around the world, thank you for your commitment to Advancing Filtration for a cleaner world.
Now I Will turn the call back to Denise to open the line for questions. Denise?
Questions and Answers:
Operator
[Operator Instructions] Your first question comes from Bryan Blair with Oppenheimer. Your line is open.
Bryan Blair -- Oppenheimer -- Analyst
Thanks, good morning guys.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Bryan.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Good morning, Bryan.
Bryan Blair -- Oppenheimer -- Analyst
In terms of your second quarter sales expectations, can you offer a little more color on what you're thinking of that by segments.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Sure. So, Bryan as we look outward, we would suggest that the On-Road story is led by US recovery and the emerging portion of the On-Road story is China for us. And so we would look for a pickup in those markets. Second, we would look for agriculture and agricultural market -- end market pickup worldwide. So that's really broad based. Construction still feels a bit more muted and mining is still bouncing around at low levels.
Bryan Blair -- Oppenheimer -- Analyst
Okay. Helpful detail. And I'm sorry if I missed this detail in the prepared remarks, but how did innovative products perform in Engine Aftermarket for the quarter?
Brad Pogalz -- Director, Investor Relations
Hey, Bryan, this is Brad. The performance overall was really good. Tod touched on PowerCore. We had another record and that was up a little bit in the quarter and then if we look at the total IP products, so that was maybe 25% of aftermarket. They were up in the mid single-digits in the quarter.
Bryan Blair -- Oppenheimer -- Analyst
Got it. Thanks, Brad. And then, any more color you can offer in Process Filtration trends. I know that on the new equipment side there has been pressure for a while. Are you seeing stabilizing orders early in the second quarter or is that still pressured on that side?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So on the new equipment side, we'd say we still see some pressure from headwind across that capex based investments just like we do on our dust collection business on Process Filtration. But on the replacement part cycle, we'd say we still continue to gain share evidenced by the fact that it was up in low single-digits in the quarter.
Bryan Blair -- Oppenheimer -- Analyst
Okay. Thanks again.
Brad Pogalz -- Director, Investor Relations
Thanks Bryan.
Operator
Your next question comes from Rick Eastman with Baird. Your line is open.
Richard Eastman -- Robert W. Baird -- Analyst
Yes and thanks for the questions. A couple of things. And by the way welcome to Charley and Brad we'll miss you. But...
Brad Pogalz -- Director, Investor Relations
Thank you.
Richard Eastman -- Robert W. Baird -- Analyst
Just a quick question, Tod could you maybe throw just a little bit more color, I'm still maybe a little bit surprised that the US aftermarket business didn't perform better just in Engine, just given the easy comp that we saw. So maybe you could, and was there any -- did any of the China growth in aftermarket come out of the US, meaning did we previously serve that through exports?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, it's a great question Rick. So, the China growth is just true share gain growth. It's not a realignment of exports or anything like that. So China is truly share gain. Within the US, you're seeing many parts of the end markets pickup, clearly within utilization. The headwinds that we still have is oil and gas and the oil and gas comps, where fracking really stepped down and still remains a headwind to us on the comp side. So, that's really the story in the US. All other parts are that -- now there is one other nuance. So you talked about the potential for China, that didn't happen in China, but it did happen a bit in the US. So we did have some movement out of the United States to Latin America, where we now service customers in Latin America. And so that's a bit of the headwind as well. So it's oil and gas in that line transfer as well.
Richard Eastman -- Robert W. Baird -- Analyst
Okay. And is the expectation around the aftermarket business, Engine Aftermarket business, is the expectation that business is finally lapsed the negative comparison we can have a positive compare in the second quarter here. The fiscal segment just around Engine Aftermarket?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, that's our view.
Richard Eastman -- Robert W. Baird -- Analyst
Okay. Okay. And then, Tod you had flagged this in your comments, but when I look at the On-Road business and Off-Road business sales in the fiscal first quarter relative to the fourth, and I just look at it in dollars. What do we kind of to make this, I mean how comfortable do you feel here with the On-Road and the Off-Road Engine business ticking up fairly meaningful -- meaningfully in dollars. On-Road you had a $32 million quarter. Off-Road $60 million -- almost $65 million quarter, pretty substantial step-up. So in your mind when you think about those two businesses, OE businesses, are you seeing the order flow support that acceleration or is the first quarter, maybe more a testament to the third and fourth quarter speaking of the [Technical Issues]?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes. So, Rick it goes back to kind of the how I open with the first answer right? So On-Road US is clearly the US based story and all the statistics with ACT and all of the -- all of what you see out there on the new truck orders filling in is clearly what we're experiencing. And so we would see that we have some tailwinds within that market still on -- as to how long that Will last or how big that step-up would be, but we are seeing more positive momentum in the On-Road particularly a US story, but also an emerging part of that story is our share gains across China. And then, on the Off-Road side, it's really an ag story. It's a broad based story. You hear that out of Deere's report and many of the others and so we do see some momentum in that area as well.
Richard Eastman -- Robert W. Baird -- Analyst
Okay. Okay. And just my last question, promise you. Tod when you mentioned aftermarket sales first-fit or equipment sales in the quarter from a total Donaldson perspective, what does those growth rates or declines look like across Engine and across Industrial? Is that a number you have?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Is it for the sequential performance.
Richard Eastman -- Robert W. Baird -- Analyst
No, just year-over-year. So against your revenue decline of what 5% was aftermarket in total, flat or was it up a little bit for the equipment or first-fit?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So, Rick, a little confused, I had or on the table that we put within the release of course we show that aftermarket was essentially down 1% over last year Q-to-Q and Off-Road was down about...
Richard Eastman -- Robert W. Baird -- Analyst
I'm just -- yes, if you could just...
Tod E. Carpenter -- Chairman, President and Chief Executive officer
I could just talk around getting them.
Richard Eastman -- Robert W. Baird -- Analyst
Just, total sales for Donaldson. I mean we obviously have aftermarket sales, replacement sales on the Industrial side as well and dust collection. I think you kind of referenced those -- parts of those were better. But I'm just curious if you have a number like that?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Got it, got it. Sorry. Yes, I misunderstood Rick. Apologies. So both segments where aftermarket was down low-single digits versus doubles for -- in both segments.
Richard Eastman -- Robert W. Baird -- Analyst
Down low-double digit. Okay.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes. So pretty consistent where Tod's opening remark about how aftermarket significantly outperformed that was pretty much true in both segments.
Richard Eastman -- Robert W. Baird -- Analyst
Got you. Okay, perfect. Thank you gentlemen. [Speech Overlap] And good luck to you and your family Brad.
Brad Pogalz -- Director, Investor Relations
Thank you.
Operator
Your next question comes from Nathan Jones with Stifel. The line is open.
Nathan Jones -- Stifel -- Analyst
Good morning everyone.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi Nathan.
Nathan Jones -- Stifel -- Analyst
Maybe just talk a little bit about gross margin, do those get back to 35% here. Just looking back at the Analyst Day presentation a couple of years ago, I think the targets were probably 35.5%, 36%. Clearly, we've had a little demand disruption in the interim. Do you guys still think you're on target to get kind of -- to those kind of 35.5%, 36% gross margin level, if we get volume back to say 2019 levels. And then what's the path forward from there?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Hi, good morning, Nathan. This is Scott. So we still feel good about our Investor Day targets. As we've said, the timeline certainly got pushed out due to the pandemic and the revenue declines we've experienced, but we still feel good about those targets. We Will continue to work to drive up that margin. We were pleased with the performance in the last quarter and in the fourth quarter of last year. So good growth in gross margins. We still see that Investor Day target of op margin between 15% and 15.8% that we gave out in the Investor Day as a reasonable target for us. And as revenues grow, we're going to be working to continue to improve our operating margins. So I think we still have those targets inside and we're still driving that direction.
Nathan Jones -- Stifel -- Analyst
Okay. The next question on inventory. I think Tod in your comments, you mentioned that the OEMs were still tweaking inventory levels. Do you feel like there's a little destocking in the OEM channel. I think for the last quarter or two, you've said the aftermarket is pretty much flat. And with -- the prospect here that we're going to see sequential growth in your end market demand, should we also start to see some restocking, both at the distributed and the OEMs?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Nathan, I've actually visited customers in the quarter here on the independent channel and I would tell you that we feel comfortable that it's at pull-through levels. I'll be with more customers tomorrow. So I would say the independent channel is pretty stable. On the OE side, we did a little bit of fits and starts with that and so that's why the word tweaking if you Will. You know the end of the year is here now in December, they typically do some balance sheet management pull it out, we see the come back and then the balance in January, etc. So net-net, it's just small movements. But I feel like our culture the one place where we are starting to feel a little bit of pickup and you can see some restocking into China, but that that's really driven by our personal share gains.
Nathan Jones -- Stifel -- Analyst
Can you think that calendar year 2021 should say some meaningful restocking in these channels, just given your demand outlook over the next few quarters here?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
It's tough to say Nathan. I -- how Will this thing unfold relative to the pandemic. Will it walk up or Will it step up? I'm not really sure, but as the economy is open up worldwide, clearly they might add back carefully because cash is still very important to many businesses, especially the independent channel. And so, we're really not sure what the behavior Will be like this time out of this recession, it may be different on the restocking behavior than previous.
Nathan Jones -- Stifel -- Analyst
Okay. And just one more on the dust collector business. You did say that dust collector orders were down in the quarter you just reported. Are we still in the phase where we're going down at a faster rate or going down at a slower rate?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Slower rate, still elongated that we stubble and quote-the-order cycle, but must do projects are being done. Other projects are just being put up as long as they can. So we've clearly worked through much of that, but there is a carefulness cloud that hangs over, that's at from investments still.
Nathan Jones -- Stifel -- Analyst
Not surprising in this environment. Thanks for taking my questions. I'll pass it on.
Operator
Your next question comes from Brian Drab with William Blair. Your line is open.
Brian Drab -- William Blair -- Analyst
Hey, good morning. Thanks for taking my questions. And...
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi Brian.
Brian Drab -- William Blair -- Analyst
Hi, Charley. Looking forward to working with you and Brad, I've already said you'd probably 80 mills, wishing you good luck, but good luck again.
Brad Pogalz -- Director, Investor Relations
Thanks Brian.
Brian Drab -- William Blair -- Analyst
Did you say or can you say what percentage of revenue for Engine, and what percentage of total revenue is generated in China in the quarter -- in the first quarter?
Brad Pogalz -- Director, Investor Relations
Sure, Brian. This is Brad. I'll take that one. Engine was 6% -- about 6% of Engine sales came from China in the quarter. And Industrial was higher at about 12%. But I'd remind everybody that our disk drive business about half of that comes out of China. So that's inflated a bit. And the nice thing with Engine is with these growth rates we've seen that share grow pretty meaningfully over the last five or so years. So Engine as a percent of China -- the percent of China for Engine coming out of that is much higher than it's been.
Brian Drab -- William Blair -- Analyst
Okay, I appreciate that. And then Tod, you talked about the Advance and Accelerate portion of the portfolio and specifically Process Filtration. I was wondering can you comment on some of these other areas you mentioned at the Investor Day like venting, semiconductor, hydraulics, I think you might have touched on some of that, but what are the -- how are those businesses growing outside of Process Filtration and also is this Advance and Accelerate category still growing at the time of the Investor Day is like 5 to 7 points beyond what the corporate average was?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes, so first I'll touch with our venting business. We're very pleased with the share gains we've had inventing. It's still coming off of a low base to the company, but we are looking to get that to be a 4% level on the overall corporation. It's still between -- it's gone from less than 1% to between 1% and 2%. So we've had some nice growth. And we also had some significant program wins ahead of us. So very pleased with the team and the progress and the growth on the venting side. Relative to other portions of the portfolio, hydraulic, we also continue to grow more of a mid-single digit in this type of an environment situation than venting which is clearly within the double-digit. So we are very pleased with the investments we've made across the Advance and Accelerate portfolio. It's delivering quite nicely. As far as performance outside or above the overall company average is, yes, we would say that mid single-digits above company averages, is clearly power expectation and the reason why we continue to invest within that particular segment of our portfolio.
Brian Drab -- William Blair -- Analyst
Okay and then just last, I'd be interested if you had any update on the market reception of remote monitoring technology that you introduced recently?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
As you can imagine within our IAF with our dust collection based businesses where the overall market is still very careful on quote-the-order cycles are also very careful on any type of investments. And so, we're still in that push type of the mode out to the marketplace. We do have hundreds of installations, but we still continue to push it out to the marketplace and the market is not switch to a pole yet. We would look for that sometime in the future and we would have to get more market normal fee certainly before we would expect that to happen.
Brian Drab -- William Blair -- Analyst
Yes, all right. That makes sense. Okay. Thanks for taking my question.
Operator
Your next question comes from Laurence Alexander from Jefferies. Your line is open.
Daniel Rizzo -- Jefferies -- Analyst
Hey guys, this is Daniel Rizzo on for Laurence. How are you?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi Dan.
Daniel Rizzo -- Jefferies -- Analyst
You mentioned savings in A&D, some optimization or you mentioned optimization program. I was wondering if there was a target for the savings you expect over the next couple of years?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
We're still working on the plan on that. We clearly Will come out with some additional guidance once we conform those types of activities up, but those kind of adjustments really still lie ahead of us.
Daniel Rizzo -- Jefferies -- Analyst
Okay.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
And this is Scott, I just wanted to say, as we mentioned, we're working hard to explore cap [Phonetic] optimization initiatives across the company and we work hard to manage that opex, especially as we move into the next few quarters here.
Daniel Rizzo -- Jefferies -- Analyst
Okay. And then you mentioned being disciplined in sticking to the plan in terms of looking for inorganic growth. I was wondering if the pandemic is also the landscape of potential targets, whereas there might be more or less or even if it has changed in the last nine months [Indecipherable]?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
It has changed things a little bit. So for example, if you're in the mask business, that's pretty interesting. You can buy masked making companies these days which you couldn't in the past. So maybe people are trying to cash in, within that filtration piece that's really believe it or not a low technology space. So that's been one of the changes that's happened. But the balance of the areas where we are interested in, there has not been really any change in behaviors. It's still a very highly valued segment and we continue to knock on doors and work our list.
Daniel Rizzo -- Jefferies -- Analyst
Okay, thank you very much.
Operator
And your last question comes from Dillon Cumming with Morgan Stanley. Your line is open.
Dillon Cumming -- Morgan Stanley -- Analyst
Great. Good morning, guys. Thanks for the questions. First Tod, you mentioned that you're kind of doubling the sales force around Process Filtration, food and beverage. I guess, first, what does that imply that level of growth that you see for that business, both I guess this year and next. And related to that, Scott, I think you mentioned that you front-load some cost savings associated with those sales force adds in industrial. Do you feel like you front-loaded enough of those? Do you think you can get back to kind of year-over-year EBT margin improvement in Industrial next quarter or is that something kind of play out in the next quarter or two?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes. So maybe I'll start and then I'll let Scott pick up. So relative to the growth rates that we would expect our investment, particularly in this type of environment, we have to be able to be let into the plants to be able to make those sales. So we would expect mid single-digits to high single-digit type of growth rates across our Process Filtration business. And I'll let Scott pick up from there.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, I think you heard Tod say we're essentially doubling the sales force. So we're making a big investment there and certainly new sales folks when they come on, they take time. You could say things are a little bit challenging right now with the pandemic, but we still feel that's a strong investment for our future. We noted Industrial margins were down 10 basis points this quarter. And that's because we're making investments in the Industrial. So I can see the need for your question. And I would submit that as those people come up to speed and hope that things get a little bit better here with the pandemic that those investments Will begin to return at a higher rate and that Industrial margin Will start to increase. So we need to leverage those investments. Certainly there is front loaded costs which are impacting us now as revenues are a little soft on the Industrial side. But we expect that situation to improve over time. And we're going to continue to invest in high-margin opportunities in our Advance and Accelerate portfolio. But over time, we expect that margins, the company to increase and our Advance and Accelerate portfolio carries a higher than average corporate gross margin, and that Will be a positive tailwind for the company.
Dillon Cumming -- Morgan Stanley -- Analyst
Yes, OK. Got it. That's helpful. And then maybe kind of switching back some of your longer cycle businesses and IFS and dust collection. I think you guys have been calling out capex as an initiative kind of longer growth cycles for several quarters now. It's certainly understandable and you're talking about that earlier, but I guess what do you think these customers are kind of looking-forward at this point, because it seems like PMIs are probably more stable than couple of quarters ago, and we're bumping up against about a year project deferrals at this point. So I guess, how sustainable is it for customers [Phonetic] to kind of be maintaining this current level of capex spending in that business?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Well dust collectors lifespan is between 15 and 20 years typically and so consequently they can go a little bit longer and continue to run and just handle replacement parts changed out if you Will. And that's on the upgrade side. The other part of it is new equipment or plant expansion. So you haven't seen a whole lot of plant expansions going on. So that cycle is still pretty dormant [Phonetic] out there, which would normally give us some good lift. So overall, we do need more confidence across the economic recovery both in the US and Western Europe in order to really be able to be comfortable that we're looking at an uptick within that business.
Brad Pogalz -- Director, Investor Relations
Dillon this is Brad. I'll add one point, if you think about PMI in this activity. That's good for the aftermarket side of that business. We would watch capacity utilization as probably more trigger for a new equipment. So keep your eye on that metric, we are too.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay, got it, thanks Brad. It's helpful and thanks for the color Tod. Maybe just a last question here. The cash balance creeped up a bit. Tod, you went through kind of reiterated some of your capital allocation priorities. But you guys have the 1% repurchase framework laid out. Is there kind of a level of cash that you're kind of targeting to the end of the year or placeholder, but we can benchmark? Or then I guess, if you want to assume that you cannot kind of execute in the M&A by the end of the year, is there still kind of a place where we kind of reference your buybacks versus the benchmark in terms of kind of a level of cash you'd be comfortable holding at year-end?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes, so we kind of run the company on a net debt to EBITDA target of 1.0, so that's our target where we're slightly below that. Now we want to be conservative, then why of the situation. We have our capital deployment strategy, invest either organically or inorganically in the company, pay that dividend, which has been going on for 65 years and then buyback shares. We knew this is kind of an awkward year which is why we came out with the share buyback target initially at 1%. We bought 0.3% of the outstanding shares for the first quarter and I made a statement that if things continue to improve, you could very well reasonably expect us to increase that 1% up to -- up a fair amount. So that's kind of where we sit right now as things crystallize here, we Will be a bit firm with our guidance, but we're committed to 1% and we said if things continue to improve we Will likely increase that because we are generating very strong cash conversion in the first quarter, that Will come down a bit as revenue trajectory changes and our capex is down, so we feel that our free cash flow is a very strong kind of print right now. So we're happy about that and we'll manage as we go forward and we'll keep you appraised of our estimates.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay, great. Thanks for the time guys.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks Dillon.
Operator
Okay/ I'll now turn the call back over to Tod Carpenter, CEO, for closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Denise. That concludes today's call. I want to thank everyone listening for your time and interest in Donaldson Company, and I hope that you, your families and friends are safe. And I wish you all a happy holiday season. Goodbye.
Operator
[Operator Closing Remarks]
Duration: 52 minutes
Call participants:
Charley Brady -- Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Brad Pogalz -- Director, Investor Relations
Bryan Blair -- Oppenheimer -- Analyst
Richard Eastman -- Robert W. Baird -- Analyst
Nathan Jones -- Stifel -- Analyst
Brian Drab -- William Blair -- Analyst
Daniel Rizzo -- Jefferies -- Analyst
Dillon Cumming -- Morgan Stanley -- Analyst
More DCI analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q1 2021 Earnings Call Dec 3, 2020, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brad Pogalz -- Director, Investor Relations Bryan Blair -- Oppenheimer -- Analyst Richard Eastman -- Robert W. Baird -- Analyst Nathan Jones -- Stifel -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Specifically, the second half of the year, we are still expecting headwinds from higher incentive compensation and planning a return to a more normal operating environment, we would anticipate year-over-year increase in expense categories that have been significantly depressed by the pandemic. | Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brad Pogalz -- Director, Investor Relations Bryan Blair -- Oppenheimer -- Analyst Richard Eastman -- Robert W. Baird -- Analyst Nathan Jones -- Stifel -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q1 2021 Earnings Call Dec 3, 2020, 10:00 a.m. Sales of replacement parts outperformed first-fit by a wide margin providing valuable stability, and we saw continued evidence of share gains in strategically important markets and geographies helped in part by our robust portfolio of innovative products. | Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brad Pogalz -- Director, Investor Relations Bryan Blair -- Oppenheimer -- Analyst Richard Eastman -- Robert W. Baird -- Analyst Nathan Jones -- Stifel -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q1 2021 Earnings Call Dec 3, 2020, 10:00 a.m. Stepping back to the numbers, our objectives for the year are consistent with what I shared last quarter, we Will invest for growth and market share gains in our Advance and Accelerate portfolio, execute productivity initiatives that Will strengthen gross margin, maintain control of operating expenses including the implementation of select optimization initiatives and protect our strong financial position through disciplined capital deployment and working capital management. | Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Charley Brady -- Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brad Pogalz -- Director, Investor Relations Bryan Blair -- Oppenheimer -- Analyst Richard Eastman -- Robert W. Baird -- Analyst Nathan Jones -- Stifel -- Analyst Brian Drab -- William Blair -- Analyst Daniel Rizzo -- Jefferies -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q1 2021 Earnings Call Dec 3, 2020, 10:00 a.m. Thanks for joining Donaldson's first quarter 2021earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; Scott Robinson, Chief Financial Officer and Brad Pogalz who you all know. | 96cf2f67-7ece-4f22-97cc-8e56807c09fd |
709764.0 | 2020-12-03 00:00:00 UTC | Donaldson Q1 Profit Tops Estimates; Sales Down 5.4% - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-q1-profit-tops-estimates-sales-down-5.4-quick-facts-2020-12-03 | nan | nan | (RTTNews) - Donaldson Company, Inc. (DCI) reported that its first quarter earnings per share declined 4.4 percent to $0.48 from $0.51, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Analysts' estimates typically exclude special items.
First quarter net sales declined to $636.6 million from $672.7 million, previous year. Analysts expected revenue of $614.99 million, for the quarter.
The company expects second quarter sales to be up sequentially from first quarter, with a year-over-year change between a 4 percent decline and a 1 percent increase.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Donaldson Company, Inc. (DCI) reported that its first quarter earnings per share declined 4.4 percent to $0.48 from $0.51, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Analysts' estimates typically exclude special items. | (RTTNews) - Donaldson Company, Inc. (DCI) reported that its first quarter earnings per share declined 4.4 percent to $0.48 from $0.51, prior year. First quarter net sales declined to $636.6 million from $672.7 million, previous year. The company expects second quarter sales to be up sequentially from first quarter, with a year-over-year change between a 4 percent decline and a 1 percent increase. | (RTTNews) - Donaldson Company, Inc. (DCI) reported that its first quarter earnings per share declined 4.4 percent to $0.48 from $0.51, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. The company expects second quarter sales to be up sequentially from first quarter, with a year-over-year change between a 4 percent decline and a 1 percent increase. | (RTTNews) - Donaldson Company, Inc. (DCI) reported that its first quarter earnings per share declined 4.4 percent to $0.48 from $0.51, prior year. Analysts' estimates typically exclude special items. First quarter net sales declined to $636.6 million from $672.7 million, previous year. | baaaaf84-a092-4c34-84fc-f5053ebbaaf0 |
709765.0 | 2020-12-03 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for December 04, 2020 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-dci-ex-dividend-date-scheduled-for-december-04-2020-2020-12-03 | nan | nan | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on December 04, 2020. A cash dividend payment of $0.21 per share is scheduled to be paid on December 22, 2020. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 7th quarter that DCI has paid the same dividend. At the current stock price of $53.14, the dividend yield is 1.58%.
The previous trading day's last sale of DCI was $53.14, representing a -8.88% decrease from the 52 week high of $58.32 and a 70.98% increase over the 52 week low of $31.08.
DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Fuel Tech, Inc. (FTEK). DCI's current earnings per share, an indicator of a company's profitability, is $2.01. Zacks Investment Research reports DCI's forecasted earnings growth in 2021 as 1.07%, compared to an industry average of -15.6%.
For more information on the declaration, record and payment dates, visit the DCI Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Fuel Tech, Inc. (FTEK). Zacks Investment Research reports DCI's forecasted earnings growth in 2021 as 1.07%, compared to an industry average of -15.6%. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on December 04, 2020. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. DCI's current earnings per share, an indicator of a company's profitability, is $2.01. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 7th quarter that DCI has paid the same dividend. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. Donaldson Company, Inc. (DCI) will begin trading ex-dividend on December 04, 2020. This marks the 7th quarter that DCI has paid the same dividend. | 3901d751-0be1-4111-868f-2180f3c6a91c |
709766.0 | 2020-12-02 00:00:00 UTC | Ex-Dividend Reminder: AMETEK, Donaldson and Insperity | DCI | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-ametek-donaldson-and-insperity-2020-12-02 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 12/4/20, AMETEK Inc (Symbol: AME), Donaldson Co. Inc. (Symbol: DCI), and Insperity Inc (Symbol: NSP) will all trade ex-dividend for their respective upcoming dividends. AMETEK Inc will pay its quarterly dividend of $0.18 on 12/24/20, Donaldson Co. Inc. will pay its quarterly dividend of $0.21 on 12/22/20, and Insperity Inc will pay its quarterly dividend of $0.40 on 12/21/20. As a percentage of AME's recent stock price of $117.11, this dividend works out to approximately 0.15%, so look for shares of AMETEK Inc to trade 0.15% lower — all else being equal — when AME shares open for trading on 12/4/20. Similarly, investors should look for DCI to open 0.39% lower in price and for NSP to open 0.46% lower, all else being equal.
Below are dividend history charts for AME, DCI, and NSP, showing historical dividends prior to the most recent ones declared.
AMETEK Inc (Symbol: AME):
Donaldson Co. Inc. (Symbol: DCI):
Insperity Inc (Symbol: NSP):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.61% for AMETEK Inc, 1.58% for Donaldson Co. Inc., and 1.84% for Insperity Inc.
In Wednesday trading, AMETEK Inc shares are currently down about 0.1%, Donaldson Co. Inc. shares are down about 0.2%, and Insperity Inc shares are down about 0.8% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, on 12/4/20, AMETEK Inc (Symbol: AME), Donaldson Co. Inc. (Symbol: DCI), and Insperity Inc (Symbol: NSP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DCI to open 0.39% lower in price and for NSP to open 0.46% lower, all else being equal. Below are dividend history charts for AME, DCI, and NSP, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 12/4/20, AMETEK Inc (Symbol: AME), Donaldson Co. Inc. (Symbol: DCI), and Insperity Inc (Symbol: NSP) will all trade ex-dividend for their respective upcoming dividends. AMETEK Inc (Symbol: AME): Donaldson Co. Inc. (Symbol: DCI): Insperity Inc (Symbol: NSP): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DCI to open 0.39% lower in price and for NSP to open 0.46% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 12/4/20, AMETEK Inc (Symbol: AME), Donaldson Co. Inc. (Symbol: DCI), and Insperity Inc (Symbol: NSP) will all trade ex-dividend for their respective upcoming dividends. AMETEK Inc (Symbol: AME): Donaldson Co. Inc. (Symbol: DCI): Insperity Inc (Symbol: NSP): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DCI to open 0.39% lower in price and for NSP to open 0.46% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 12/4/20, AMETEK Inc (Symbol: AME), Donaldson Co. Inc. (Symbol: DCI), and Insperity Inc (Symbol: NSP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DCI to open 0.39% lower in price and for NSP to open 0.46% lower, all else being equal. Below are dividend history charts for AME, DCI, and NSP, showing historical dividends prior to the most recent ones declared. | 3afa2607-2d6c-4338-ae6d-7a597f1539c6 |
709767.0 | 2020-11-23 00:00:00 UTC | Daily Dividend Report: SJI,MKC,UFCS,DCI,UGI | DCI | https://www.nasdaq.com/articles/daily-dividend-report%3A-sjimkcufcsdciugi-2020-11-23 | nan | nan | SJI announced today that its board of directors voted to increase the company's regular quarterly dividend from $0.2950 per share to $0.3025 per share. The new annualized dividend of $1.21 represents an increase of 2.54 percent per share over the previous level. With this announcement, SJI has increased its dividend for 22 consecutive years. The dividend is payable December 29, 2020 to shareholders of record at the close of business on December 10, 2020 with an ex-dividend date of December 9, 2020. This is SJI's 69th consecutive year of paying dividends, reflecting the company's commitment to a consistent, sustainable dividend.
The Board of Directors of McCormick today declared an increase in the quarterly dividend from $0.62 to $0.68 per share on its common stocks, which will be paid on a split-adjusted basis of $0.34 per share to reflect the 2-for-1 stock split that is effective December 1, 2020. The dividend is payable January 11, 2021 to shareholders of record December 31, 2020. This marks the 35th consecutive year that the Company has increased its quarterly dividend. At $0.68, the quarterly dividend is double the amount paid in 2013. Lawrence E. Kurzius, Chairman, President & CEO, said "Our overarching focus on long-term sustainable growth is relentless. We are confident our strategies will continue to drive McCormick forward and further build shareholder value. We remain committed to our long history of returning cash to shareholders and I am pleased to announce another dividend increase." McCormick has paid dividends each year since 1925.
Today, the Board of Directors of United Fire Group, declared a common stock quarterly cash dividend of $0.15 per share. This dividend will be payable December 18, 2020 to shareholders of record as of December 4, 2020. UFG has a long history of paying quarterly dividends, with the quarterly cash dividend declared today marking the 211th consecutive quarterly dividend paid, dating back to March 1968. UFG's corporate strategy is focused on growth that diversifies the effects of individual underwriting perils, and the new dividend level supports these strategic capital requirements.
Donaldson Company, today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable December 22, 2020, to shareholders of record on December 7, 2020. The Company has paid a cash dividend every quarter for 65 years, and Donaldson was added to the S&P High-Yield Dividend Aristocrats Index in January 2016 after 20 consecutive years of annual dividend increases.
The Board of Directors of UGI has declared a quarterly dividend of $0.33 per share of the company's common stock. The dividend is payable January 1, 2021 to shareholders of record as of December 15, 2020. UGI has paid common dividends for 136 consecutive years and raised its dividend in each of the last 33 years.
VIDEO: Daily Dividend Report: SJI,MKC,UFCS,DCI,UGI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: SJI,MKC,UFCS,DCI,UGI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. We remain committed to our long history of returning cash to shareholders and I am pleased to announce another dividend increase." Today, the Board of Directors of United Fire Group, declared a common stock quarterly cash dividend of $0.15 per share. | VIDEO: Daily Dividend Report: SJI,MKC,UFCS,DCI,UGI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This is SJI's 69th consecutive year of paying dividends, reflecting the company's commitment to a consistent, sustainable dividend. UFG has a long history of paying quarterly dividends, with the quarterly cash dividend declared today marking the 211th consecutive quarterly dividend paid, dating back to March 1968. | VIDEO: Daily Dividend Report: SJI,MKC,UFCS,DCI,UGI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors of McCormick today declared an increase in the quarterly dividend from $0.62 to $0.68 per share on its common stocks, which will be paid on a split-adjusted basis of $0.34 per share to reflect the 2-for-1 stock split that is effective December 1, 2020. UFG has a long history of paying quarterly dividends, with the quarterly cash dividend declared today marking the 211th consecutive quarterly dividend paid, dating back to March 1968. | VIDEO: Daily Dividend Report: SJI,MKC,UFCS,DCI,UGI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. McCormick has paid dividends each year since 1925. Donaldson Company, today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable December 22, 2020, to shareholders of record on December 7, 2020. | 6b1b9612-7dfe-413e-88ce-30ec36bee59d |
709768.0 | 2020-09-03 00:00:00 UTC | Donaldson Co (DCI) Q4 2020 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q4-2020-earnings-call-transcript-2020-09-03 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q4 2020 Earnings Call
Sep 3, 2020, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen thank you for standing by, and welcome to the Donaldson's Fourth Quarter and Full Year 2020 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Brad Pogalz, Director of Investor Relations. Thank you. Please go ahead.
Brad Pogalz -- Director, Investor Relations
Thank you. Good morning, everyone. Thank you, for joining Donaldson's fourth quarter and full year 2020earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our 2020 performance along with an update on key considerations for 2021. I want to remind everyone that we issued a business update press release on August 6, which included some details that we will reference on this morning's call. During today's call, we will also reference non-GAAP metrics. We included a reconciliation of GAAP to non-GAAP metrics within the schedules attached to this morning's press release. Finally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks, Brad, and good morning, everyone. I want to start today by thanking our employees for their resilience, flexibility and commitment in fiscal 2020. I greatly appreciate the work they do every day to keep us moving forward. As always, we remain focused on those things under our control. Despite a significant shift in the economic environment during fiscal '20, there were several things that went as planned including: sales of replacement parts performed better than new equipment and first-fit products, gross margin increased from the prior year, we reduced our discretionary expenses while investing in growth businesses, and we maintained a strong financial position while returning cash to shareholders through dividends and share repurchase.
We are entering fiscal '21 with clear priorities and engaged employees. We do not anticipate strong market conditions overall this year but our diverse business model and robust operational capabilities give me confidence that we can make progress on our strategic initiatives in any economic environment. We will talk more about our longer term opportunities later in the call. So I'll now turn to a brief overview of fourth quarter sales. Total sales were $617 million in the quarter with sequential increases in June and July. Compared with the prior year, sales were down 15%, which is consistent with the forecast we provided in early August. Both segments experienced a similar decline. However, there was quite a bit of variability within the results. In the Engine segment our first-fit businesses remain under the most pressure. Fourth quarter On-Road sales were down 44% from the prior year.
The U.S. is the largest portion of On-Road and it accounted for much of the decline as the cyclical slowdown in Class 8 truck production was magnified by the pandemic. As a reminder, On-Road first-fit in the U.S. is only about 3% of total Donaldson sales so our aggregate exposure to that market is limited. Sales in Off-Road were down 24% in the quarter. More than half the decline was due to Exhaust and Emissions. There were pre-buys in Europe last year related to an oncoming regulatory change and new programs for our Exhaust and Emissions products are not yet at meaningful volumes. In the U.S. production on heavy duty Off-Road equipment remains depressed, particularly for the construction and mining industries. On the other hand, Off-Road sales in China were up nearly 50% in the fourth quarter. The Chinese government is investing to stimulate activity which is benefiting our Off-Road business.
Additionally, we continue to win new programs with local manufacturers and some of those programs were won with PowerCore. These are new customer relationships in the country that produces more heavy duty equipment than anywhere in the world. We are learning how to best support these local manufacturers and we know that will come with order volatility, but our team in China is motivated as we see the opportunity for significant long-term growth. Sales trends for Engine aftermarket were predictably better than our first-fit businesses. Fourth quarter aftermarket sales were down 11% reflecting a decline in the mid-teens for sales through our independent channel. The headlines in our independent channel are fairly consistent with third quarter. Sales in the U.S. fell with the collapse of the oil and gas market combined with slowing transportation activity.
In Latin America, utilization is slowing across the region as the spread of the virus is compounding the impact from geopolitical uncertainty. And fourth quarter sales in Eastern Europe remain strong as we continue gaining share. Sales through the OEM channel of aftermarket experienced a more modest, low-single-digit decline. In the U.S., large customers pulled down inventory to match demand, which was partially offset by strong growth in China as we continue gaining share with local customers. In fact, aftermarket sales in China were at a record level last quarter and we see a long runway as we expect to continue winning new programs with innovative technology. Our portfolio of innovative products performed well in the fourth quarter. This portfolio makes up nearly a quarter of the total aftermarket revenue and fourth quarter sales were up in the low-single digits.
For nearly two decades, we have been improving, expanding and reinventing our offering related to these razor-to-sell razor-blade products. After all that time we still have very strong retention rates. These products create a significant opportunity for growth and relative stability in our Engine business. So, we will continue to invest in new technologies for a long time to come. Sales of Aerospace and Defense were down 3% in fourth quarter driven by soft sales of products for commercial helicopters. The decline was partially offset by a strong increase in sales for ground defense vehicles but some of the growth is timing-related as key distributors build inventory in the quarter. I also want to update you on a change to our strategic portfolio classification. Beginning in fiscal '21, we are recategorizing the defense business to critical core from mature.
Our mature businesses are committed to generating cash that allows for investment elsewhere while critical core businesses are geared toward driving share gains in existing markets with new technology, services and relationships. The Defense business has won new programs with our robust engineering capabilities and we expect these wins will deliver solid returns over a long time horizon. Turning to our Industrial segment, fourth quarter sales were down 15% driven in large part by the Dust Collection business within Industrial Filtration Solutions or IFS. Sales of new dust collectors and replacement parts were down as customers continue to defer investment and reduce output. The quote-to-order cycle remains elongated with large projects being put on hold while smaller must-do projects tend to move forward. At the same time, our value proposition still resonates.
Fourth quarter sales of our Downflo Evolution dust collection systems were up in the low teens and the sales of those replacement parts grew more than 30%. The Downflo family of products is only about 15% of total dust collection sales today, but it has grown rapidly as customers appreciate the space and energy savings it offers and we value the ability to retain the aftermarket. We are also building the dust collection business through our e-commerce platform shop.donaldson.com. We turned on the ability to take guest orders earlier this year and we are encouraged by the results. While incremental dollars are still small, we have seen a significant number of new dust collection customers. With our robust sales and delivery model, we believe the simplicity of our e-commerce platform gives customers another reason to choose Donaldson.
Fourth quarter sales of Process Filtration were down in the low-single digits after an increase of more than 10% last year. The decline was driven by new equipment while replacement parts were about flat with the prior year. We continue to make progress penetrating the highly valuable food and beverage industry. We position ourselves as an engaged partner and we market our ability to quickly fulfill orders with a product that can help improve efficiency in our customer's processes. The pandemic gave us the opportunity to prove this value proposition to our customers in the food and beverage industry and our Process Filtration team delivered. We remain very excited about this market, so we will continue to invest in growing the sales force and adding new tools to drive this profitable business.
Sales of Special Applications were down 10% in fourth quarter. Disk Drive was down from the prior year after having a significant increase in third quarter while the slowdown in the automotive market resulted in lower sales of Venting Solutions. Fourth quarter sales in Gas Turbine Systems or GTS were up 6% due primarily to strength in small turbines. Once again the GTS team delivered another profit increase in terms of both dollars and rates. As you know, we shifted the GTS go-to-market strategy four years ago. We determined that the best path forward was to focus on replacement parts and small turbines while being highly selective in deciding which large turbine projects we pursue. The GTS team has done an incredible job executing their strategy and we see it in the results.
In the past quarter we also chose to consolidate our joint venture in Saudi Arabia into our company. Once again, we are focused on rightsizing and streamlining GTS to enhance our profitability. Based on what the GTS team has delivered and the opportunities in front of us, we are reclassifying GTS as a mature business in our portfolio. The GTS team has transitioned from fixing the business to driving profitability and we are on solid footing today. I want to thank them for the incredible job they did executing their strategy and delivering on their commitments. The success in GTS is not an isolated incident. Our company is filled with great people working together to deliver results and create value for all our stakeholders.
That's why I'm comfortable and confident in our future. Before turning the call to Scott, I want to briefly touch on fiscal 2021. We're not sure how long the pandemic will last nor are we sure about its ultimate impact on our business. Given those uncertainties, we will remain focused on what we control, prioritizing the health and safety of our employees, fulfilling our customer commitments, pursuing market share and growth opportunities around the world, executing margin enhancement initiatives and maintaining a balanced approach to expense management, which includes making targeted investments to advance our strategic priorities. Scott will share some more fiscal '21 details.
So I will now turn the call over to him. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Tod. Good morning, everyone. Like most companies, we had to quickly adjust to a new way of working over the past six months, and our employees did an excellent job at that period. We increased our level of collaboration, we deepened our relationships with customers and suppliers, and we performed in critical businesses around the world with minimal disruption. Overall, I'm very impressed by what our team accomplished. To my colleagues around the world, thanks for all you do. As we turn to fiscal '21, we have a solid foundation. But the markets are not yet on firm footing. Given the wide range of possible outcomes, including the timing and shape of the inevitable recovery, we are not issuing detailed guidance at this time. We do however want to provide some of our 2021 planning assumptions.
I'll cover those later in the call, but first I'll share some thoughts on fiscal '20 results. Decremental margin was a notable highlight for us. We delivered 20% in the fourth quarter and 18% for the full year. Those results are stronger than our historic averages. So let me walk through some of the details. I'll start with operating expenses, which declined 10% to $125 million in the fourth quarter, that's flat sequentially, and it's our lowest fourth quarter level in four years. Discretionary expenses were down significantly, due in part to pandemic-related travel restrictions, and we maintained our investments in strategic growth businesses like Process Filtration, Dust Collection and Connected Solutions. We will continue to focus on balancing expense [Indecipherable] investments, and we are pleased with the performance in the fourth quarter.
We are also pleased with our gross margin performance. Fourth quarter gross margin was up 20 basis points in the prior year, and our full year rate was up 50 basis points despite headwinds in lower sales and higher depreciation related to our capacity expansion projects. As a side note, many of these projects are now completed. That's why our capital expenditures in fiscal '21 are planned well below the $122 million we invested last year. Our focus has now shifted to the optimization opportunities enabled by these investments. We plan to lower our cost structure while maintaining or improving service levels. While benefits from these initiatives will ramp up over time our list of optimization projects give me confidence that we can deliver strong returns with these new assets. Lower raw material costs are helping us offset the loss of leverage, impact on gross margin.
We have seen favorability in market prices for steel, media and petroleum-based products and our procurement team is driving incremental savings as they strengthen our supplier network while improving terms. I also want to touch on pricing, while it has been a major contributor to the year-over-year gross margin increase it hasn't been a headwind. We have more latitude to drive pricing in many of our replacement parts businesses and teams like those in the independent channel of Engine Aftermarket have done an excellent job consistently executing our pricing strategy. I know that takes a lot of work so I want to thank our commercial teams around the world for meeting our customers' needs while promoting the value we bring in terms of technology and service. It makes a big difference especially in this economic environment.
A favorable mix of sales is also making a difference to gross margin. In the fourth quarter and for most of the year we have realized mixed benefits as replacement parts make up a greater share of total sales. To a certain extent these mixed benefits are by design. We invest in technology to win first-fit programs that drive aftermarket retention. As we move through an economic cycle, our strong base of recurring revenue creates some relative stability and provide some gross margin inflation [Phonetic]. Replacement parts now account for 64% of total sales giving us confidence in the durability of our business model. Before moving further down the P&L, I want to quickly talk about segment profit margins. The story is Engine is consistent with the consolidated results. Mix benefits and lower raw material costs after the loss of leverage results in a year-over-year margin increase of 20 basis points in the fourth quarter.
Within the Industrial segment, the loss of leverage was magnified by continued investments in our strategic growth businesses. We expect Industrial margins will bounce back helping us deliver our goal of mixing the company's margins up over time. Moving back to the P&L, Other income was $2.7 million in the fourth quarter compared with an expense of $0.5 million in the prior year, and improved performance in our joint ventures was a benefit in fiscal '20 and the fourth quarter expense in the prior year reflects a charge related to our global cash optimization initiatives. These initiatives, which allowed us to streamline our legal and fee structure were enabled by tax reform. We excluded the charge of last year's calculation of adjusted earnings per share and we also excluded a non-recurring charge related to tax reform legislation.
With that in mind, it's best to compare the reported fourth quarter tax rate of 21.1% with the prior year's adjusted tax rate of 21.4%. While the delta between rates is not significant, I'll point out that current and prior year rates were well below what we would typically expect. The fourth quarter 2020 rate benefit from a favorable mix of earnings across jurisdictions while the 2019 adjusted rate included a non-recurring benefit related to the favorable settlement of an audit. As we think about fiscal '21, we see our full year tax rate going up in 2020 to be more in line with our long-term estimate of 24% to 27%. In terms of our financial position, we feel good about where we ended the year. Our leverage ratio was 0.9 times net-debt-to-EBITDA and in the fourth quarter we paid off a term loan for $50 million and we reduced borrowings in our revolver by $110 million.
We proactively reduce from our revolver in the early days of the pandemic as a way to bolster our liquidity out of an abundance of caution. While markets still are uncertain, we are confident in our strong position and no longer feel the need for that extra layer of security. Receivables were down meaningfully from the prior year, which is what we expect in this environment. Inventory was also down. So we plan further improvements this year as we focus on leveling with demand. Our fourth quarter and full year 2020 cash conversion rates increased meaningfully to 165% and 103% respectively and we plan to exceed 100% again this year. Our fiscal '21 assumptions for sales are directionally consistent with recent trends.
Sales are expected to vary widely by geography and market and sales of our replacement parts and products for new markets should continue to outperform the company average. Additionally, we expect sales during the first half of '21 will be down versus the prior year due to the timing of when the pandemic began. We are seeing these sales trends play out in August, which we expect will be down about 10% from the prior year. Total sales for the month will also be down from July, but that's typical seasonality. Regional trends in August match what we saw in the fourth quarter. Sales in the APAC region are performing the best versus the prior led by growth in China. Europe is faring better due in part to currency while the U.S. and Latin America remain under the most pressure.
And as expected we have pockets of relative strength from some of our more stable businesses including Engine Aftermarket and Process Filtration, which are both up in Europe while new equipment remains under more pressure. In terms of fiscal '21 gross margin, benefits from product mix and lower raw material costs would lessen as we compare against strong tailwinds in the prior year. At the same time, we will execute our optimization projects to position ourselves for long-term increases in gross margin. Our fiscal '21 operating expenses will also have some puts and takes. Resetting our annual incentive compensation plan generates a headwind of about $13 million and we are planning to make further investments in our strategic growth businesses and technology development.
We plan to substantially offset these increases by controlling expenses, which will likely see some benefits from pandemic-related restrictions and comparing against a higher level spend in the first half of the prior year. Should we see an opportunity that makes sense, we will also explore additional optimization initiatives. Finally, we plan to repurchase at least 1% of outstanding shares in fiscal '21, which would offset any dilution from stock-based compensation. Any repurchases beyond that level would be governed by macroeconomic conditions, our investment opportunities and our balance sheet metrics. Should conditions improve, it is not unreasonable to assume this goal above the 1% in fiscal '21. At a high level, our objectives for the New Year are consistent with our long-term strategic agenda.
We will pursue growth and market share opportunities in our Advance & Accelerate portfolio of businesses, drive optimization initiatives that will strengthen gross margins, control discretionary expenses while making targeted investments and protect our strong financial position to discipline capital deployment and working capital management. These are the actions we can control and I am confident in our ability to deliver in 2021. Before turning the call back to Tod, I want to share some news. After five years as our Investor Relations Director, Brad is going to be moving to Belgium to take over as Finance Director of our Europe-Middle East region. COVID makes the timing a little uncertain, but I know he's committed to facilitate a smooth transition when we find his replacement. Thanks Brad for all your work in IR. You have done an excellent job and congratulations on the exciting new adventure with Donaldson.
I will now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks, Scott and I offer my congratulations to Brad as well. You'll clearly be missed in this role, but we all know it's a great opportunity, so we're very excited for you. I'm confident in our ability to navigate the complexities of the current environment and I'm equally confident in our ability to create long-term value by meeting the evolving needs of our customers. We have strong relationships with our customers and they range from some of the world's biggest brands to small business owners. We are grateful for the partnerships we have and I want to thank our customers around the world for their continued support of our company. Our goal is to solve our customers' complicated filtration challenges in a way that allows them to deliver great products efficiently and I think we're doing well against that objective.
Let me share some examples of what I mean. In the Engine segment, our Filter Minder team released a wireless monitoring system that helps fleet managers optimize their maintenance schedules for On-Road and Off-Road equipment. Our system integrates into the existing telematics and fleet management infrastructure making it easy for our customers to adopt this valuable technology. We're also expanding connecting solutions into the dust collection market with our IQ offering. This service provides customers with real-time monitoring of their equipment performance helping them save energy costs and reduce unplanned downtime. Once again, we made it easy to adopt, our IQ set up can be used on any brand of dust collector and the retrofit process is very simple.
Our e-commerce platform is another tool for helping customers operate more efficiently. Shop.donaldson.com has a global reach and offers features like real-time availability and personalization functionality making it easy for customers to find what they need and place new or repeat orders. As always, new technology is a critical part of our success formula and we continue to expand our technologies and solutions to drive growth. Many of our Engine customers are looking to improve fuel economy and reduce emissions and our products can help them achieve their goals. We have shown that consistent use of our PowerCore products can help end-users improve fuel economy and it provides value to our OEM customers as they can retain more of their parts business.
We still see many opportunities with diesel engines and we also see a growing opportunity with alternative powertrains like hybrid solutions and hydrogen fuel cells. Hybrid platforms leverage the portfolio of air and liquid solutions we have today so we have good opportunity with that equipment. The needs are different for fuel cells and we have a specialized air filtration system that is specifically designed to meet those needs. In addition to our air systems, we also have venting products and specialized membranes for fuel cells. With our technical capabilities, we are well-positioned to participate in this growing market. We are also pursuing non-Engine markets like food and beverage. Sales of process filtration were about $15 million in fiscal '20, that's an increase of more than 60% over the past three years.
We have continued investing in new technologies and we are building capabilities that will facilitate our future expansion into life sciences. Our long-term success is dependent on our team, so we're committed to making our company a great place to work. We have a strong culture and we place a high value on integrity, commitment, respect and innovation. We also have a continuous improvement mindset, so we've recently created a diversity, equity and inclusion council that will help identify and implement practices to make us a stronger company. The council is being led by a passionate group of employees and I want to thank them for stepping up to move us along in this important journey.
We are also on a journey with our sustainability practices. We began developing our global sustainability strategy last year. We have engaged our stakeholders and we have identified a long list of projects while reducing greenhouse gas emission, energy consumption and wastewater. Implementing and maintaining sustainable practices is one more way we drive toward our purpose of advancing filtration for a cleaner world. As I close today's call, I want to thank again our employees for their contributions during fiscal 2020. I'm proud of what we accomplished as One Donaldson and I look forward to another successful new year.
Now, I'll turn the call back to Lisa to open the line for questions. Lisa?
Questions and Answers:
Operator
Thank you. [Operator Instructions] And our first question comes from the line of Nathan Jones from Stifel. Your line is open.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Good morning, everyone.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Hi Nathan.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Good morning.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Maybe we can start on the top line. Fourth quarter sales in aggregate down about 15%, you said August was down about 10%. Can you talk a little bit about how the comparisons in the fourth quarter progressed and is that all goes down 10%, a better comparison than the kind of the exit rate out of the fourth quarter or have things started to settle down here and it's kind of hovering in that minus 10% range? Just any color you can give us on how that's progressed over the last few months?
Brad Pogalz -- Director, Investor Relations
Nathan, this is Brad. I'll start. And as a reminder for you and the group, a few months ago we announced that May sales will be down 24%, and then of course that came out the way we expected. So when you put June and July together, they were down in the low double digits, which is pretty consistent with the trend we saw year-over-year in April. The decline, or excuse me, in August; the decline in August from July is also not a typical seasonality. We would typically see that falling off as we get more toward the fall and winter months.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Maybe then -- OK. So, June, July and August have been fairly consistent on the comparison levels there. Can you talk about which parts of the business there are seeing a recovery, which parts are slower to recover and would you anticipate some of those lagging parts of the business to gradually begin to improve as we go through the back half of the calendar year here?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Sure, Nathan. This is Tod. So, the businesses are very mixed as you might imagine. So, any first-fit type business. So, On-Road vehicles or Off-Road vehicles with first-fit production have the most significant headwinds and the most significant headwinds in the company is On-Road United States first-fit business. The rest of the businesses such as aftermarket both in the independent channel and the OE channel are more modest headwinds and we do see that with the destocking that has occurred in the previous two quarters really had a pull-through like level.
As we turn to the industrial side, the most significant headwinds are going to be first-fit equipment in our industrial air filtration business. We also see slight headwinds in the replacement parts because industrial production is -- has not come back particularly in the United States to the levels that we would expect. That's where we are at the moment. We would expect the first half especially because COVID hit in the second half of last year, we would expect the headwind to be more predominant in the first half and then of course, with the easier comps and such a growth overall for the company to be in the second half of our fiscal year.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
So I guess if where you're right now kind of low-double-digit declines in July and June, 10% in August, you should probably see some of those lagging businesses get a little bit better as we go through the back half. So is it at least fair to say that that first half revenue comparison should be down in the single digits somewhere rather than the potential for it to be down in the double-digits?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Tough to say specifically where -- clearly high single to low doubles in the first half is not out of any of the models that we have built here.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay. Thanks very much. I'll pass it on.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks, Nathan.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Nathan.
Operator
Our next question comes from the line of Bryan Blair from Oppenheimer. Your line is open.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Thanks. Good morning, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Hi Bryan.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Hi Bryan.
Bryan Blair -- Oppenheimer & Co. -- Analyst
I was hoping I could dig in a little more on your gross margin performance, up 50 bps for the year despite the top line headwinds but obviously stands out. I was hoping you could parse out the operational lifts from your initiatives. I think you were targeting 50 basis points to 75 basis points there. And then the benefits of favorable mix and lower material cost relative to the clear hit from utilization?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, so I mean we're pleased with -- in the overall gross margin performance. It's obviously been something we focused on for quite a while. And I think you've covered the main points there. If we look at kind of mix in raw material, we would probably put that in the 100 basis points range. If you look at the loss of leverage -- offset somewhat by all the imperatives that we've had, that probably took us down 80 basis points. And then you have a lot of little puts and takes in that in depreciation and some other things to kind of sum for that overall improvement. So, it's been mix in raw materials on one hand, and then lots of leverage but we've saved or spared quite a bit of that by all the great projects that have been completed. And we look forward to those projects moving to more of an optimization phase this year, which will help our margins next year and into the future.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Got it. Appreciate the detail. And then on that front, it sounds like gross margin dynamics will be somewhat similar in fiscal '21, just a lessening impact from the favorable mix, and then lower raws that you've had. Given your current outlook, is the expectation for further gross margin improvement this year or is it too early to call?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
No. We're committed to improving those gross margins. I think you hit it right on the head, and we're going to continue to push to drive margin improvement pending reasonable levels of sales.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Okay. And kind of a housekeeping question. In understanding you're not providing a hard number on your capex guide, is there a range as a percentage of revenue we should think about for 2021? And then looking forward, any shift to normalized capex in that 3% of sales range?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So, that's what I was going to say, kind of a normalized range. What we've always said is 3% of sales. I think we're going to be under that for next year, quite a bit. We said we were -- had a net number of $122 million for this year, which is kind of the completion of our investment period that we're quite happy to be kind of done with. So, we would expect to be under our normal run rate and then obviously significantly under FY '20. So, we're going to get into a point. I noted that and we expect our cash conversion for next year to be greater than 100%, and that's driven partly by improvements in working capital and then a lower level of capex.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Got it. One last one if I can. Any quick update you can offer on your M&A pipeline? Seems like there's been a little bit of an uptick in activity at least for companies that have more proprietary funnels and we certainly have capacity if the right deals are there?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yeah, Bryan. This is Tod. We continue to work the M&A pipeline that we have. We would suggest to you that it still remains robust and no change in our stance, our philosophy, our ability to do a deal. We just continue to work it and we'll continue to do so because we believe that's an important part of our long-term strategy.
Bryan Blair -- Oppenheimer & Co. -- Analyst
Okay. Thanks again, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks.
Operator
Our next question comes from the line of Joe Aiken from William Blair. Your line is open.
Joe Aiken -- William Blair & Co. -- Analyst
Hi. This is Joe on for Brian today. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Hi, Joe.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Hi, Joe.
Joe Aiken -- William Blair & Co. -- Analyst
So first of all just on the model. Looking at operating expense, you mentioned the $13 million incremental incentives comp expected for fiscal '21. Is that expected to hit in any quarters in particular, can you remind me?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. That will be most of it year-over-year and then second half of 2021.
Joe Aiken -- William Blair & Co. -- Analyst
Okay. And looking at kind of a run rate opex dollars of $1.5 million in the fourth quarter, how much of that -- is that primarily temporary costs that have been taken out or are there some permanent costs that have been taken out there as well?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
I think we haven't had any like big restructurings or permanent COGS structure changes. We have been obviously working hard to control our expenses. We do get some benefit from travel restrictions that are in existence in the world today. And we've been working hard to control our discretionary expenses that we could still spend because we're really trying to protect those investments that we're making to help drive the longer-term success in the company.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
So, Joe, I'll just add a little bit of color. So, if we just look at the macro level from the way we're approaching this. We're playing a long-term game here and our people around the world are doing a fantastic job at controlling what they can control, the discretionary expenses while the company continues to invest in the long-term strategy and the controlling of the expenses right now is allowing us to play offense where we can play offense. And so that's how we're looking at it and we would congratulate and thank all the employees around the world for doing just an excellent job.
Joe Aiken -- William Blair & Co. -- Analyst
Got it. Appreciate the color there. And then just switching gears, looking at some momentum you're seeing in China right now, how long can some of these tailwinds last? Have you seen some projects pulled forward as a result of the Blue Sky Initiatives and some of the investments China is making in stimulating the economy? Have you seen projects pulled forward and how long can some of those tailwinds last?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
So it's important to understand that that our representation in China is still low-single-digit across almost every one of our markets there. And so consequently, it can last like a very, very, very, long time and we're just now getting some momentum with technology-based wins that are actually shipping to China-based -- China national-based customers, which is expansion for us from the multinational-based customers that we had there. So, our expansion in China can last a very long time as we continue to gain momentum and it's broad. It's in our Engine-based business on the first-fit with first-fit technologies of PowerCore. It's on the aftermarket side that we're gaining momentum and it's also Blue Sky Initiatives on the industrial side particularly in the IAF business.
Joe Aiken -- William Blair & Co. -- Analyst
Okay. Thanks a lot. I'll pass it on.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks Joe.
Operator
Our next question comes from the line of Dillon Cumming from Morgan Stanley. Your line is open.
Dillon Cumming -- Morgan Stanley -- Analyst
Great. Thanks. Good morning, guys.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Good morning.
Dillon Cumming -- Morgan Stanley -- Analyst
I just wanted to kind of jump back into industrial margins for a second. I think you guys have been expanding margins at a pretty good clip kind of year-to-date, but then obviously the decremental stuff that we got this quarter. I guess Scott you mentioned in your prepared remarks but how much of that decremental would you say was kind of driven by some of the more internal investments you mentioned versus sale of like unfavorable mix and just kind of general lost operating leverage?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. I mean, I think you hit it exactly on the head. I would say its spread across those three factors -- just the leverage on lots of volume. We keep talking about even on the questions here about how we want to continue to make investments and we're continuing those and those are targeted in a higher percent to industrial. And then finally, we had a little weaker mix in the quarter compared to the year-over-year comps, which drove it down a little bit. So, we expect the mix to improve and so that headwind will ultimately probably abate. And we got to get those sales starting to increase over time so we can get rid of the deleveraging issue.
Dillon Cumming -- Morgan Stanley -- Analyst
Got it. That's helpful. Thanks, Scott. And then maybe on the aftermarket side and that was kind of one of the few revenue verticals that you mentioned were -- and that is it still falling a bit. I guess you kind of had the rank or the headwinds on the aftermarket sales there. How much did you say is kind of related to this kind of general weakness in utilization versus this more kind of acute high market pressure in kind of areas like oil and gas or something else?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yeah, we would tell you that the oil and gas as well as the fracking callback specifically were significant headwinds, even more so than we had originally modeled to be fully transparent there. So that's the most significant headwind that we have. And then of course just a general more broad-based utilization slowdown would likely be the second largest hit.
Dillon Cumming -- Morgan Stanley -- Analyst
Okay, got it, thanks. [Indecipherable] more in here. I mean it kind of seems like the aftermarket inventory levels have been pretty volatile over the past few quarters and it's early on the OEM side, if you look back, it declined a bit in the quarter. I guess given view on kind of whether inventory levels are right sized at this point are you kind of [Indecipherable] level of destock in the first half?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yeah, we'd say the independent channel actually destock first. The OE channel just tweaked a little bit, not a dramatic destocking. And so we would suggest to you that based upon the behaviors and the forward-looking orders that we have today that both channels are at pull-through levels.
Dillon Cumming -- Morgan Stanley -- Analyst
Got it. That's helpful. Thanks for the time guys.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thank you.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thank you.
Operator
Our next question comes from the line of Laurence Alexander from Jefferies. Your line is open.
Dan Rizzo -- Jefferies -- Analyst
Hey guys. It's Dan Rizzo on for Laurence. How are you?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Hi Dan.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Hi Dan.
Dan Rizzo -- Jefferies -- Analyst
Hey, can we just circle back on the pricing you mentioned before. How does it work? I mean just some color there. I mean is it negotiated every time? Do you have any rebates or I mean do you have to justify a price increase just any color will be great?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
On the first-fit side of pricing, particularly within the Engine side of our business, we have price downs on annual long-term contracts. So each year, we start in a negative position relative to that revenue. And that would also be in the OE aftermarket piece of that business. On the independent channels of aftermarket in Engine, clearly we have more leeway there, and we do it on a region-by-region basis based upon local conditions. On the industrial side of the company, it more resets quickly with a project more -- more of that revenue being project-based business. So, as you wash out a project based lead times typically three, four, five months, you'll wash out the old pricing and come back with a new quoted project base. And then aftermarket of course is more like an independent channel where we have better control.
Dan Rizzo -- Jefferies -- Analyst
That's actually very, very helpful. Thank you. And then just one another question on capex. You mentioned it's going down. And I'm sorry if I missed this, but [Indecipherable] as temporary response to the pandemic because I know you had some big projects in hand, but I was wondering with the kind of what the mix was there and how we should think about it overall long-term?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. I think you have it right. So we had been and said that we are in a period of high investments as we had many projects that were in flight, and we're happy to report that we've completed the majority of those projects. And so, our investment will come way down. In early next year, we're going to be really focused on driving the optimization of those projects instead of bringing in new equipment. So, it's a great time for the company and that we get to fine-tune the things we already have and drive improvements from that versus having to invest additional dollars, which is why we expect a strong cash conversion in FY '21.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
And just maybe a little bit of color, so people often will try to connect the dot of the pandemic equating to our capex based reductions here this fiscal year, and that's not really what you're seeing in our behavior. Remember, the past three years we've had a significant run-up based upon a strategic plan to optimize our supply chain internally. And so, we are now coming to the end of that pretty significant investment, and now we'll be essentially shuffling the deck internally to continue to expand our gross margins and optimize our supply chain. So, the fact that we have less capex this fiscal year is less connected to the pandemic and more to our strategic priorities and what we're executing longer-term.
Dan Rizzo -- Jefferies -- Analyst
Thank you very much, guys.
Operator
Our next question comes from the line of Richard Eastman from Baird. Your line is open. Richard Eastman, your line is open.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Yes. Thank you, sorry I was on mute. Yeah, thanks for the questions and best of luck to Brad. Congrats Brad. This is going to be exciting, congrats. Hey, just a quick question around gross margins. I just want to go back to this for one second; in total, the gross margins for the full year were what, plus 50 bps? And I'm curious the progress that was made in the Engine versus Industrial segments. And also just Tod, you spoke to price there a little bit, but net-net, was price kind of a neutral on gross margin for the year? I mean, again, it's going to move with, presumably move with the mix, but I presume it's more the volume than it is a price impact on gross margin for the year?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yeah. Net net, Rick pricing was flat across the company, obviously very mixed results in different businesses, but to a total company, it comes out flat.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. Okay. And then the progress on the Engine versus Industrial side, relative to that 50 basis points overall consolidated?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Yeah. I noted in my script, that overall the Engine story is kind of consistent with the consolidated results, which is, mixed benefit, lower raw material costs, offsetting by the loss of leverage. For Industrial, they had similar factors, but they also have the added concept, a little more investment and probably a little bit weaker mix. So those two additional factors come into play when you think about Industrial.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. So was there any progress made in gross margin on the Industrial side, year-over-year or was that a bit of a drag and the 50 basis points consolidated was driven by the Engine side?
Brad Pogalz -- Director, Investor Relations
Rick, this is Brad. I would say that there's progress made, it's just unfortunately masked a bit by the loss of revenue. So the things that we've been talking about with procurement savings for example, the team there is doing a lot of work to try and find ways to either negotiate differently locally, find new qualified vendors, things like that that help us and that benefits both segments. I would say the same is true on pricing discipline that that's happening across the company, as Tod mentioned it is quite varied by business. And then this year as we grow into some of the new capacity, Industrial will certainly benefit from that. And then one more thing, the long game with Industrial, is also favorability with mix. These high tech markets are -- I know we're putting a lot of technology dollars are going to benefit the Industrial segment, probably disproportionately over time.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. Okay. And then, just maybe as a -- just kind of leads me into my next question, but lots of commentary around the puts and takes on the gross margin side as you just addressed. And then also, the opex, obviously, we had the incentive coming back in, and then, some other cost actions there. I think the reference was also made to some additional cost optimization, if necessary. But I'm curious when you look at where you exited or finished fiscal '20, I think your operating margins were 13.2%. With the puts and takes in the commentary here around gross margins and opex, under the assumption that maybe sales are flat this year. That'd be my assumption. But under that assumption, would the target be here to have flat operating margins here as well? I mean, I'm trying to figure out how you're maybe looking at the incrementals-decrementals, but if the assumption is flat, flat revenue for the year, is the goal and the target here to hold margins flat as well as a percentage of sales?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Rick this is Tod. So, with all of the moving pieces, we would still expect, even on flat sales to expand our operating margin so very slightly, obviously.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
And that would likely be driven by the gross margin work that we continue to do across the company because we are very focused on gross margin.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. Okay. All right. Very good. And just maybe one last thought around some of the first-fit businesses and maybe IFS in particular, anything that you are seeing, you talked about elongated quote-to-order trend, but is there any sense there that your backlog around some of these first-fit businesses is, has hit bottom here and we're waiting for maybe calendar '21, capital budgets to start kicking in or how do you look at where your backlog is in some of these, in your first-fit business in particular IFS?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
So, within IFS, we, on the first-fit business, we've seen roughly and the conversion rate from quote-to-order, it's kind of doubled in its behavior, right? So, it's out over a 100 days before people are making decisions. They're deciding on the must-do projects, the thing that they have to do in order to protect, say, a particular environmental issue or whatever the case may be; they're doing the must-dos. But the rest, they're really pushing on and it's been slow and that's pretty broad based around the world with the notable exception of China. China is a little slower but not as slow as the rest of the world. They continue to move forward. So, what do we look on the backlog? When will that change? I think people are waiting for industrial production to gain a little bit more confidence as they can really gear up their factories again and that level of confidence is just not out there yet across our customer base.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. Okay. Yeah. Yeah. Okay, makes a little sense. Okay. Thank you again and again thanks to Brad for all his help and I'm sure he will be fully engaged in and contributor from Europe.
Brad Pogalz -- Director, Investor Relations
Thanks Rick.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Yeah, congrats, yeah. Thanks, guys.
Operator
Our next question comes from the line of Nathan Jones from Stifel. Your line is open.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Hi, guys. I just wanted to put a final point on the operating expense expectations here, and I think maybe you've narrowed on this. First half of the year was running at that $140 million level, second half of the year is running at about $125 million per quarter. You've got obviously the stock comp coming back in and you're probably going to have some of the temporary cost reductions, things like travel that are going to increase here as we go forward. I think you said, on flat sales, you'd look at operating margins expanding a little bit -- bit mostly on gross margins, which would imply that the annual operating expense in '21 is probably targeted to be roughly flat. So is it a reasonable expectation for us to think that this kind of these low 130s is where we're going to go to and see that through 2021? And as the temporary costs start to naturally roll off as economies reopen, are there any plans to take some more structural cost actions in order to offset those expenses coming back?
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Nathan, the low 130s would be aggressive. We would not expect on a quarterly basis to hit that level of rate, just simply because we do have the investments coming online. So for example we have our new material research center and that will be staffing up and putting online here in Q2 and other strategic investments that we have. So the low 130s would be aggressive, we would suggest. And then longer term, with all this expansion that we've done to normalize into our supply chain to really get after our gross margin initiative, all we've done is we've advanced our strategic plan, our three- to five-year plan within operations and we've built out our internal footprint, if you will and so we continue to look at what are our next steps within that plan. And looking forward, should there be any kind of say tweaks or move the restructuring actions relative to that operations plan that are necessary. Clearly, we would take those actions. And that would be the first place that we would look relative to where we're at in the company's actions. But what we're doing is we're just playing our operations playbook in order to continue to expand our gross margins and that's how we're looking at it.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay. Just to clarify that, I said low 130, not below 130.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Oh, I'm sorry. Okay. Thank you. I heard below 130s. And that would be aggressive. So, low 130s makes more sense.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay. Thanks very much for the clarification.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. Thanks Nathan.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Thanks Stifel as well.
Operator
I'll now turn the call back over to Tod Carpenter for closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
That concludes today's call. And I want to thank everyone listening for your time and interest in Donaldson Company. And I hope that you and your families and friends are all safe. Goodbye.
Operator
[Operator Closing Remarks]
Duration: 59 minutes
Call participants:
Brad Pogalz -- Director, Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive Officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Bryan Blair -- Oppenheimer & Co. -- Analyst
Joe Aiken -- William Blair & Co. -- Analyst
Dillon Cumming -- Morgan Stanley -- Analyst
Dan Rizzo -- Jefferies -- Analyst
Richard Eastman -- Robert W. Baird & Company -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q4 2020 Earnings Call Sep 3, 2020, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Bryan Blair -- Oppenheimer & Co. -- Analyst Joe Aiken -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Dan Rizzo -- Jefferies -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Despite a significant shift in the economic environment during fiscal '20, there were several things that went as planned including: sales of replacement parts performed better than new equipment and first-fit products, gross margin increased from the prior year, we reduced our discretionary expenses while investing in growth businesses, and we maintained a strong financial position while returning cash to shareholders through dividends and share repurchase. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Bryan Blair -- Oppenheimer & Co. -- Analyst Joe Aiken -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Dan Rizzo -- Jefferies -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q4 2020 Earnings Call Sep 3, 2020, 10:00 a.m. Given those uncertainties, we will remain focused on what we control, prioritizing the health and safety of our employees, fulfilling our customer commitments, pursuing market share and growth opportunities around the world, executing margin enhancement initiatives and maintaining a balanced approach to expense management, which includes making targeted investments to advance our strategic priorities. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Bryan Blair -- Oppenheimer & Co. -- Analyst Joe Aiken -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Dan Rizzo -- Jefferies -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q4 2020 Earnings Call Sep 3, 2020, 10:00 a.m. Despite a significant shift in the economic environment during fiscal '20, there were several things that went as planned including: sales of replacement parts performed better than new equipment and first-fit products, gross margin increased from the prior year, we reduced our discretionary expenses while investing in growth businesses, and we maintained a strong financial position while returning cash to shareholders through dividends and share repurchase. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive Officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Bryan Blair -- Oppenheimer & Co. -- Analyst Joe Aiken -- William Blair & Co. -- Analyst Dillon Cumming -- Morgan Stanley -- Analyst Dan Rizzo -- Jefferies -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q4 2020 Earnings Call Sep 3, 2020, 10:00 a.m. I guess given view on kind of whether inventory levels are right sized at this point are you kind of [Indecipherable] level of destock in the first half? | 39ea6653-eef0-4df3-89ca-22fed3f2d371 |
709769.0 | 2020-09-03 00:00:00 UTC | DCI Crosses Below Key Moving Average Level | DCI | https://www.nasdaq.com/articles/dci-crosses-below-key-moving-average-level-2020-09-03 | nan | nan | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $48.59, changing hands as low as $45.20 per share. Donaldson Co. Inc. shares are currently trading down about 6.9% on the day. The chart below shows the one year performance of DCI shares, versus its 200 day moving average:
Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $58.32 as the 52 week high point — that compares with a last trade of $47.67.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $48.59, changing hands as low as $45.20 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $58.32 as the 52 week high point — that compares with a last trade of $47.67. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $48.59, changing hands as low as $45.20 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $58.32 as the 52 week high point — that compares with a last trade of $47.67. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $48.59, changing hands as low as $45.20 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $58.32 as the 52 week high point — that compares with a last trade of $47.67. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $48.59, changing hands as low as $45.20 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $31.08 per share, with $58.32 as the 52 week high point — that compares with a last trade of $47.67. Donaldson Co. Inc. shares are currently trading down about 6.9% on the day. | 44a6dcd3-835c-4222-9cfe-89e16dcb71bf |
709770.0 | 2020-09-03 00:00:00 UTC | Donaldson Q4 Profit Tops Estimates - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-q4-profit-tops-estimates-quick-facts-2020-09-03 | nan | nan | (RTTNews) - Donaldson Company, Inc. (DCI) reported fourth quarter adjusted earnings per share of $0.50 compared to $0.61, previous year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Analysts' estimates typically exclude special items.
Fourth quarter sales declined 15.1 percent to $617.4 million from $726.9 million, prior year. Excluding the impact from currency translation, sales declined 13.7 percent, for the quarter. Analysts expected revenue of $614.16 million, for the quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Donaldson Company, Inc. (DCI) reported fourth quarter adjusted earnings per share of $0.50 compared to $0.61, previous year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Excluding the impact from currency translation, sales declined 13.7 percent, for the quarter. | (RTTNews) - Donaldson Company, Inc. (DCI) reported fourth quarter adjusted earnings per share of $0.50 compared to $0.61, previous year. Fourth quarter sales declined 15.1 percent to $617.4 million from $726.9 million, prior year. Excluding the impact from currency translation, sales declined 13.7 percent, for the quarter. | (RTTNews) - Donaldson Company, Inc. (DCI) reported fourth quarter adjusted earnings per share of $0.50 compared to $0.61, previous year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Fourth quarter sales declined 15.1 percent to $617.4 million from $726.9 million, prior year. | (RTTNews) - Donaldson Company, Inc. (DCI) reported fourth quarter adjusted earnings per share of $0.50 compared to $0.61, previous year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Analysts' estimates typically exclude special items. | 770e661a-4a4a-45c5-9a19-e44af013ba36 |
709771.0 | 2020-09-01 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2020-09-01 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Franklin Resources Inc (Symbol: BEN) $21.06 $22.72 7.87%
Smith (A O) Corp (Symbol: AOS) $48.97 $52.67 7.55%
Brady Corp (Symbol: BRC) $46.89 $50.25 7.17%
Donaldson Co. Inc. (Symbol: DCI) $50.36 $53.50 6.24%
Eaton Vance Corp (Symbol: EV) $41.02 $43.40 5.80%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Franklin Resources Inc (Symbol: BEN) 5.13% 7.87% 13%
Smith (A O) Corp (Symbol: AOS) 1.96% 7.55% 9.51%
Brady Corp (Symbol: BRC) 1.86% 7.17% 9.03%
Donaldson Co. Inc. (Symbol: DCI) 1.67% 6.24% 7.91%
Eaton Vance Corp (Symbol: EV) 3.66% 5.80% 9.46%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Franklin Resources Inc (Symbol: BEN) $1.01 $1.07 5.94%
Smith (A O) Corp (Symbol: AOS) $0.88 $0.96 9.09%
Brady Corp (Symbol: BRC) $0.852 $0.872 2.35%
Donaldson Co. Inc. (Symbol: DCI) $0.8 $0.84 5.00%
Eaton Vance Corp (Symbol: EV) $1.4 $1.5 7.14%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on EV — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Franklin Resources Inc (Symbol: BEN) $21.06 $22.72 7.87% Smith (A O) Corp (Symbol: AOS) $48.97 $52.67 7.55% Brady Corp (Symbol: BRC) $46.89 $50.25 7.17% Donaldson Co. Inc. (Symbol: DCI) $50.36 $53.50 6.24% Eaton Vance Corp (Symbol: EV) $41.02 $43.40 5.80% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Franklin Resources Inc (Symbol: BEN) 5.13% 7.87% 13% Smith (A O) Corp (Symbol: AOS) 1.96% 7.55% 9.51% Brady Corp (Symbol: BRC) 1.86% 7.17% 9.03% Donaldson Co. Inc. (Symbol: DCI) 1.67% 6.24% 7.91% Eaton Vance Corp (Symbol: EV) 3.66% 5.80% 9.46% Another consideration with dividend growth stocks is just how much the dividend is growing. | Franklin Resources Inc (Symbol: BEN) $21.06 $22.72 7.87% Smith (A O) Corp (Symbol: AOS) $48.97 $52.67 7.55% Brady Corp (Symbol: BRC) $46.89 $50.25 7.17% Donaldson Co. Inc. (Symbol: DCI) $50.36 $53.50 6.24% Eaton Vance Corp (Symbol: EV) $41.02 $43.40 5.80% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Franklin Resources Inc (Symbol: BEN) 5.13% 7.87% 13% Smith (A O) Corp (Symbol: AOS) 1.96% 7.55% 9.51% Brady Corp (Symbol: BRC) 1.86% 7.17% 9.03% Donaldson Co. Inc. (Symbol: DCI) 1.67% 6.24% 7.91% Eaton Vance Corp (Symbol: EV) 3.66% 5.80% 9.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Franklin Resources Inc (Symbol: BEN) $1.01 $1.07 5.94% Smith (A O) Corp (Symbol: AOS) $0.88 $0.96 9.09% Brady Corp (Symbol: BRC) $0.852 $0.872 2.35% Donaldson Co. Inc. (Symbol: DCI) $0.8 $0.84 5.00% Eaton Vance Corp (Symbol: EV) $1.4 $1.5 7.14% These five stocks are part of our full Dividend Aristocrats List. | Franklin Resources Inc (Symbol: BEN) $21.06 $22.72 7.87% Smith (A O) Corp (Symbol: AOS) $48.97 $52.67 7.55% Brady Corp (Symbol: BRC) $46.89 $50.25 7.17% Donaldson Co. Inc. (Symbol: DCI) $50.36 $53.50 6.24% Eaton Vance Corp (Symbol: EV) $41.02 $43.40 5.80% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Franklin Resources Inc (Symbol: BEN) 5.13% 7.87% 13% Smith (A O) Corp (Symbol: AOS) 1.96% 7.55% 9.51% Brady Corp (Symbol: BRC) 1.86% 7.17% 9.03% Donaldson Co. Inc. (Symbol: DCI) 1.67% 6.24% 7.91% Eaton Vance Corp (Symbol: EV) 3.66% 5.80% 9.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Franklin Resources Inc (Symbol: BEN) $1.01 $1.07 5.94% Smith (A O) Corp (Symbol: AOS) $0.88 $0.96 9.09% Brady Corp (Symbol: BRC) $0.852 $0.872 2.35% Donaldson Co. Inc. (Symbol: DCI) $0.8 $0.84 5.00% Eaton Vance Corp (Symbol: EV) $1.4 $1.5 7.14% These five stocks are part of our full Dividend Aristocrats List. | Franklin Resources Inc (Symbol: BEN) $21.06 $22.72 7.87% Smith (A O) Corp (Symbol: AOS) $48.97 $52.67 7.55% Brady Corp (Symbol: BRC) $46.89 $50.25 7.17% Donaldson Co. Inc. (Symbol: DCI) $50.36 $53.50 6.24% Eaton Vance Corp (Symbol: EV) $41.02 $43.40 5.80% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Franklin Resources Inc (Symbol: BEN) 5.13% 7.87% 13% Smith (A O) Corp (Symbol: AOS) 1.96% 7.55% 9.51% Brady Corp (Symbol: BRC) 1.86% 7.17% 9.03% Donaldson Co. Inc. (Symbol: DCI) 1.67% 6.24% 7.91% Eaton Vance Corp (Symbol: EV) 3.66% 5.80% 9.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Franklin Resources Inc (Symbol: BEN) $1.01 $1.07 5.94% Smith (A O) Corp (Symbol: AOS) $0.88 $0.96 9.09% Brady Corp (Symbol: BRC) $0.852 $0.872 2.35% Donaldson Co. Inc. (Symbol: DCI) $0.8 $0.84 5.00% Eaton Vance Corp (Symbol: EV) $1.4 $1.5 7.14% These five stocks are part of our full Dividend Aristocrats List. | 02f19799-7c31-4491-8a7a-a6cb014846b9 |
709772.0 | 2020-08-30 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Warren Buffett - 8/30/2020 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-on-warren-buffett-8-30-2020-2020-08-30 | nan | nan | The following are the top rated Consumer Cyclical stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
O'REILLY AUTOMOTIVE INC (ORLY) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 96% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: O'Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company's product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company's stores offer various services and programs to its customers, such as used oil, oil filter and battery recycling; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; custom hydraulic hoses, and machine shops.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of O'REILLY AUTOMOTIVE INC
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GENTEX CORPORATION (GNTX) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gentex Corporation designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry, and commercial smoke alarms and signaling devices for the fire protection industry. The Company's business segment involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that utilize electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. Within this business segment, the Company also designs, develops and manufactures various electronics that are features to the interior and exterior automotive rearview mirrors, as well as interior visors, overhead consoles, and other locations in the vehicle. The Company ships its products to all of the automotive producing regions across the world, which it supports with various sales, engineering and distribution locations across the world.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of GENTEX CORPORATION
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DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 75% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts. The Company's segments include Engine Products, Industrial Products and Corporate. The Company's products are manufactured at approximately 44 plants around the world and through three joint ventures. The Company offers its products under the Ultra-Web, PowerCore and Donaldson brands. The Engine Products segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense and truck end-markets and to independent distributors, OEM dealer networks, private label accounts and large equipment fleets. The Industrial Products segment sells to various industrial dealers, distributors, OEMs of gas-fired turbines and OEMs and end users requiring clean air. Its products include dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines and polytetrafluoroethylene (PTFE) membrane-based products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: FAIL
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of DONALDSON COMPANY, INC.
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W W GRAINGER INC (GWW) is a large-cap growth stock in the Appliance & Tool industry. The rating according to our strategy based on Warren Buffett is 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: W.W. Grainger, Inc. (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. The Company operates through two segments, which include the United States and Canada. The Company's business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company's other businesses also include Zoro Tools, Inc. (Zoro), the single channel online business in the United States, MonotaRO Co. (MonotaRO) in Japan, and operations in Europe, Asia and Latin America.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: FAIL
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of W W GRAINGER INC
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POOL CORPORATION (POOL) is a large-cap growth stock in the Recreational Products industry. The rating according to our strategy based on Warren Buffett is 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Pool Corporation is a distributor of swimming pool supplies, equipment and related leisure products. The Company is a distributor of irrigation and landscape products in the United States. As of December 31, 2016, the Company operated 344 sales centers in North America, Europe, South America and Australia, through its four distribution networks, including SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon) and National Pool Tile (NPT). The Company's customers include swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors, and golf courses and other commercial customers. Its products include pool equipment and components for pool construction and the remodeling of existing pools, and irrigation and landscape products. Its products also include other pool construction and recreational products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
Detailed Analysis of POOL CORPORATION
Full Guru Analysis for POOL>
Full Factor Report for POOL>
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of GENTEX CORPORATION Full Guru Analysis for GNTX> Full Factor Report for GNTX> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> W W GRAINGER INC (GWW) is a large-cap growth stock in the Appliance & Tool industry. The Company's business segment involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that utilize electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. | Detailed Analysis of GENTEX CORPORATION Full Guru Analysis for GNTX> Full Factor Report for GNTX> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> W W GRAINGER INC (GWW) is a large-cap growth stock in the Appliance & Tool industry. The Company's customers include swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors, and golf courses and other commercial customers. | Detailed Analysis of GENTEX CORPORATION Full Guru Analysis for GNTX> Full Factor Report for GNTX> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> W W GRAINGER INC (GWW) is a large-cap growth stock in the Appliance & Tool industry. The Company's product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. | Detailed Analysis of GENTEX CORPORATION Full Guru Analysis for GNTX> Full Factor Report for GNTX> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> W W GRAINGER INC (GWW) is a large-cap growth stock in the Appliance & Tool industry. Company Description: Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts. | 55528f3c-0bb0-491d-b8b1-77d858a31cea |
709773.0 | 2020-08-13 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for August 14, 2020 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-dci-ex-dividend-date-scheduled-for-august-14-2020-2020-08-13 | nan | nan | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 14, 2020. A cash dividend payment of $0.21 per share is scheduled to be paid on August 31, 2020. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 6th quarter that DCI has paid the same dividend. At the current stock price of $52.58, the dividend yield is 1.6%.
The previous trading day's last sale of DCI was $52.58, representing a -9.84% decrease from the 52 week high of $58.32 and a 69.18% increase over the 52 week low of $31.08.
DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Perma-Pipe International Holdings, Inc. (PPIH). DCI's current earnings per share, an indicator of a company's profitability, is $1.96. Zacks Investment Research reports DCI's forecasted earnings growth in 2020 as -11.96%, compared to an industry average of 7.6%.
For more information on the declaration, record and payment dates, visit the DCI Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DCI is a part of the Capital Goods sector, which includes companies such as CECO Environmental Corp. (CECE) and Perma-Pipe International Holdings, Inc. (PPIH). Zacks Investment Research reports DCI's forecasted earnings growth in 2020 as -11.96%, compared to an industry average of 7.6%. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 14, 2020. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. DCI's current earnings per share, an indicator of a company's profitability, is $1.96. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 6th quarter that DCI has paid the same dividend. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 14, 2020. This marks the 6th quarter that DCI has paid the same dividend. | a18437cd-5cf8-4d44-a92f-d98e5c14549b |
709774.0 | 2020-08-03 00:00:00 UTC | Daily Dividend Report: COF,GPN,ETR,LDOS,DCI | DCI | https://www.nasdaq.com/articles/daily-dividend-report%3A-cofgpnetrldosdci-2020-08-03 | nan | nan | Capital One Financial today announced a quarterly dividend of $0.10 per share payable August 20, 2020, to stockholders of record as of August 10, 2020. The company has announced dividends on its common stock every quarter since it became an independent company on February 28, 1995.
Global Payments' Board of Directors approved a dividend of $0.195 per share payable September 24, 2020 to shareholders of record as of September 10, 2020.
The board of directors of Entergy has approved a quarterly dividend payment of $0.93 per share on the company's common stock. The dividend is payable Sept. 1, 2020, to shareholders of record as of Aug. 13, 2020. Entergy has paid a common stock dividend to shareholders continuously since 1988.
Leidos Holdings today announced that its board of directors has declared a quarterly cash dividend of $0.34 per outstanding share of common stock of Leidos Holdings. The cash dividend is payable on September 30, 2020 to stockholders of record as of the close of business on September 15, 2020.
Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable August 31, 2020, to shareholders of record on August 17, 2020. The Company has paid a cash dividend every quarter for 65 years, and Donaldson was added to the S&P High-Yield Dividend Aristocrats Index in January 2016 after 20 consecutive years of annual dividend increases.
VIDEO: Daily Dividend Report: COF,GPN,ETR,LDOS,DCI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: COF,GPN,ETR,LDOS,DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The board of directors of Entergy has approved a quarterly dividend payment of $0.93 per share on the company's common stock. Entergy has paid a common stock dividend to shareholders continuously since 1988. | VIDEO: Daily Dividend Report: COF,GPN,ETR,LDOS,DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Global Payments' Board of Directors approved a dividend of $0.195 per share payable September 24, 2020 to shareholders of record as of September 10, 2020. Leidos Holdings today announced that its board of directors has declared a quarterly cash dividend of $0.34 per outstanding share of common stock of Leidos Holdings. | VIDEO: Daily Dividend Report: COF,GPN,ETR,LDOS,DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Leidos Holdings today announced that its board of directors has declared a quarterly cash dividend of $0.34 per outstanding share of common stock of Leidos Holdings. Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable August 31, 2020, to shareholders of record on August 17, 2020. | VIDEO: Daily Dividend Report: COF,GPN,ETR,LDOS,DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The company has announced dividends on its common stock every quarter since it became an independent company on February 28, 1995. The board of directors of Entergy has approved a quarterly dividend payment of $0.93 per share on the company's common stock. | 8e07a53e-f080-4a9a-8786-671fb420767c |
709775.0 | 2020-06-28 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Warren Buffett - 6/28/2020 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-on-warren-buffett-6-28-2020-2020-06-28 | nan | nan | The following are the top rated Consumer Cyclical stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
O'REILLY AUTOMOTIVE INC (ORLY) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 96% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: O'Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company's product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company's stores offer various services and programs to its customers, such as used oil, oil filter and battery recycling; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; custom hydraulic hoses, and machine shops.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of O'REILLY AUTOMOTIVE INC
Full Guru Analysis for ORLY>
Full Factor Report for ORLY>
GENTEX CORPORATION (GNTX) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gentex Corporation designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry, and commercial smoke alarms and signaling devices for the fire protection industry. The Company's business segment involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that utilize electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. Within this business segment, the Company also designs, develops and manufactures various electronics that are features to the interior and exterior automotive rearview mirrors, as well as interior visors, overhead consoles, and other locations in the vehicle. The Company ships its products to all of the automotive producing regions across the world, which it supports with various sales, engineering and distribution locations across the world.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of GENTEX CORPORATION
Full Guru Analysis for GNTX>
Full Factor Report for GNTX>
W W GRAINGER INC (GWW) is a large-cap growth stock in the Appliance & Tool industry. The rating according to our strategy based on Warren Buffett is 82% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: W.W. Grainger, Inc. (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. The Company operates through two segments, which include the United States and Canada. The Company's business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company's other businesses also include Zoro Tools, Inc. (Zoro), the single channel online business in the United States, MonotaRO Co. (MonotaRO) in Japan, and operations in Europe, Asia and Latin America.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of W W GRAINGER INC
Full Guru Analysis for GWW>
Full Factor Report for GWW>
ILLINOIS TOOL WORKS INC. (ITW) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 82% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Illinois Tool Works Inc. is a manufacturer of industrial products and equipment. The Company operates through seven segments. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment offers commercial food equipment. The Test & Measurement and Electronics segment produces test and measurement, and electronic manufacturing and maintenance, repair and operations (MRO) solutions. The Welding segment produces welding equipment, consumables and accessories for industrial and commercial applications. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment supplies engineered fastening systems and solutions. The Specialty Products segment produces beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of ILLINOIS TOOL WORKS INC.
Full Guru Analysis for ITW>
Full Factor Report for ITW>
DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 75% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts. The Company's segments include Engine Products, Industrial Products and Corporate. The Company's products are manufactured at approximately 44 plants around the world and through three joint ventures. The Company offers its products under the Ultra-Web, PowerCore and Donaldson brands. The Engine Products segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense and truck end-markets and to independent distributors, OEM dealer networks, private label accounts and large equipment fleets. The Industrial Products segment sells to various industrial dealers, distributors, OEMs of gas-fired turbines and OEMs and end users requiring clean air. Its products include dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines and polytetrafluoroethylene (PTFE) membrane-based products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: FAIL
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of DONALDSON COMPANY, INC.
Full Guru Analysis for DCI>
Full Factor Report for DCI>
More details on Validea's Warren Buffett strategy
Warren Buffett Stock Ideas
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of ILLINOIS TOOL WORKS INC. Full Guru Analysis for ITW> Full Factor Report for ITW> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. The Company's business segment involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that utilize electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. | Detailed Analysis of ILLINOIS TOOL WORKS INC. Full Guru Analysis for ITW> Full Factor Report for ITW> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Detailed Analysis of O'REILLY AUTOMOTIVE INC Full Guru Analysis for ORLY> Full Factor Report for ORLY> GENTEX CORPORATION (GNTX) is a mid-cap growth stock in the Auto & Truck Parts industry. | Detailed Analysis of ILLINOIS TOOL WORKS INC. Full Guru Analysis for ITW> Full Factor Report for ITW> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. The Company's product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. | Detailed Analysis of ILLINOIS TOOL WORKS INC. Full Guru Analysis for ITW> Full Factor Report for ITW> DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Detailed Analysis of DONALDSON COMPANY, INC. Full Guru Analysis for DCI> Full Factor Report for DCI> More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Company Description: O'Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. | 2db9cccf-c563-446f-91da-d177553fa755 |
709776.0 | 2020-06-18 00:00:00 UTC | DCI February 2021 Options Begin Trading | DCI | https://www.nasdaq.com/articles/dci-february-2021-options-begin-trading-2020-06-18 | nan | nan | Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options begin trading today, for the February 2021 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new February 2021 contracts and identified one put and one call contract of particular interest.
The put contract at the $40.00 strike price has a current bid of $2.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $40.00, but will also collect the premium, putting the cost basis of the shares at $37.15 (before broker commissions). To an investor already interested in purchasing shares of DCI, that could represent an attractive alternative to paying $45.47/share today.
Because the $40.00 strike represents an approximate 12% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 70%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.13% return on the cash commitment, or 10.57% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Donaldson Co. Inc., and highlighting in green where the $40.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $50.00 strike price has a current bid of $2.60. If an investor was to purchase shares of DCI stock at the current price level of $45.47/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $50.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 15.68% if the stock gets called away at the February 2021 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DCI shares really soar, which is why looking at the trailing twelve month trading history for Donaldson Co. Inc., as well as studying the business fundamentals becomes important. Below is a chart showing DCI's trailing twelve month trading history, with the $50.00 strike highlighted in red:
Considering the fact that the $50.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.72% boost of extra return to the investor, or 8.48% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 52%, while the implied volatility in the call contract example is 43%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $45.47) to be 43%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if DCI shares really soar, which is why looking at the trailing twelve month trading history for Donaldson Co. Inc., as well as studying the business fundamentals becomes important. Below is a chart showing DCI's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options begin trading today, for the February 2021 expiration. | Below is a chart showing DCI's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options begin trading today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new February 2021 contracts and identified one put and one call contract of particular interest. | Below is a chart showing DCI's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options begin trading today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new February 2021 contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new February 2021 contracts and identified one put and one call contract of particular interest. Below is a chart showing DCI's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options begin trading today, for the February 2021 expiration. | 75e1d43e-7fec-4a2b-8269-92efac78e07d |
709777.0 | 2020-06-16 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | DCI | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2020-06-16 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Prosperity Bancshares Inc. (Symbol: PB) $62.16 $70.40 13.26%
Donaldson Co. Inc. (Symbol: DCI) $45.56 $51.33 12.67%
Exxon Mobil Corp (Symbol: XOM) $47.14 $52.93 12.28%
Archer Daniels Midland Co. (Symbol: ADM) $39.50 $44.00 11.39%
Atmos Energy Corp. (Symbol: ATO) $101.08 $112.43 11.23%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Prosperity Bancshares Inc. (Symbol: PB) 2.96% 13.26% 16.22%
Donaldson Co. Inc. (Symbol: DCI) 1.84% 12.67% 14.51%
Exxon Mobil Corp (Symbol: XOM) 7.38% 12.28% 19.66%
Archer Daniels Midland Co. (Symbol: ADM) 3.65% 11.39% 15.04%
Atmos Energy Corp. (Symbol: ATO) 2.28% 11.23% 13.51%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Prosperity Bancshares Inc. (Symbol: PB) $1.59 $1.79 12.58%
Donaldson Co. Inc. (Symbol: DCI) $0.78 $0.84 7.69%
Exxon Mobil Corp (Symbol: XOM) $3.33 $3.48 4.50%
Archer Daniels Midland Co. (Symbol: ADM) $1.37 $1.42 3.65%
Atmos Energy Corp. (Symbol: ATO) $2.06 $2.25 9.22%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Prosperity Bancshares Inc. (Symbol: PB) $62.16 $70.40 13.26% Donaldson Co. Inc. (Symbol: DCI) $45.56 $51.33 12.67% Exxon Mobil Corp (Symbol: XOM) $47.14 $52.93 12.28% Archer Daniels Midland Co. (Symbol: ADM) $39.50 $44.00 11.39% Atmos Energy Corp. (Symbol: ATO) $101.08 $112.43 11.23% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Prosperity Bancshares Inc. (Symbol: PB) 2.96% 13.26% 16.22% Donaldson Co. Inc. (Symbol: DCI) 1.84% 12.67% 14.51% Exxon Mobil Corp (Symbol: XOM) 7.38% 12.28% 19.66% Archer Daniels Midland Co. (Symbol: ADM) 3.65% 11.39% 15.04% Atmos Energy Corp. (Symbol: ATO) 2.28% 11.23% 13.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Prosperity Bancshares Inc. (Symbol: PB) $1.59 $1.79 12.58% Donaldson Co. Inc. (Symbol: DCI) $0.78 $0.84 7.69% Exxon Mobil Corp (Symbol: XOM) $3.33 $3.48 4.50% Archer Daniels Midland Co. (Symbol: ADM) $1.37 $1.42 3.65% Atmos Energy Corp. (Symbol: ATO) $2.06 $2.25 9.22% These five stocks are part of our full Dividend Aristocrats List. | Prosperity Bancshares Inc. (Symbol: PB) $62.16 $70.40 13.26% Donaldson Co. Inc. (Symbol: DCI) $45.56 $51.33 12.67% Exxon Mobil Corp (Symbol: XOM) $47.14 $52.93 12.28% Archer Daniels Midland Co. (Symbol: ADM) $39.50 $44.00 11.39% Atmos Energy Corp. (Symbol: ATO) $101.08 $112.43 11.23% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Prosperity Bancshares Inc. (Symbol: PB) 2.96% 13.26% 16.22% Donaldson Co. Inc. (Symbol: DCI) 1.84% 12.67% 14.51% Exxon Mobil Corp (Symbol: XOM) 7.38% 12.28% 19.66% Archer Daniels Midland Co. (Symbol: ADM) 3.65% 11.39% 15.04% Atmos Energy Corp. (Symbol: ATO) 2.28% 11.23% 13.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Prosperity Bancshares Inc. (Symbol: PB) $1.59 $1.79 12.58% Donaldson Co. Inc. (Symbol: DCI) $0.78 $0.84 7.69% Exxon Mobil Corp (Symbol: XOM) $3.33 $3.48 4.50% Archer Daniels Midland Co. (Symbol: ADM) $1.37 $1.42 3.65% Atmos Energy Corp. (Symbol: ATO) $2.06 $2.25 9.22% These five stocks are part of our full Dividend Aristocrats List. | Prosperity Bancshares Inc. (Symbol: PB) $62.16 $70.40 13.26% Donaldson Co. Inc. (Symbol: DCI) $45.56 $51.33 12.67% Exxon Mobil Corp (Symbol: XOM) $47.14 $52.93 12.28% Archer Daniels Midland Co. (Symbol: ADM) $39.50 $44.00 11.39% Atmos Energy Corp. (Symbol: ATO) $101.08 $112.43 11.23% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Prosperity Bancshares Inc. (Symbol: PB) 2.96% 13.26% 16.22% Donaldson Co. Inc. (Symbol: DCI) 1.84% 12.67% 14.51% Exxon Mobil Corp (Symbol: XOM) 7.38% 12.28% 19.66% Archer Daniels Midland Co. (Symbol: ADM) 3.65% 11.39% 15.04% Atmos Energy Corp. (Symbol: ATO) 2.28% 11.23% 13.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Prosperity Bancshares Inc. (Symbol: PB) $1.59 $1.79 12.58% Donaldson Co. Inc. (Symbol: DCI) $0.78 $0.84 7.69% Exxon Mobil Corp (Symbol: XOM) $3.33 $3.48 4.50% Archer Daniels Midland Co. (Symbol: ADM) $1.37 $1.42 3.65% Atmos Energy Corp. (Symbol: ATO) $2.06 $2.25 9.22% These five stocks are part of our full Dividend Aristocrats List. | Prosperity Bancshares Inc. (Symbol: PB) $62.16 $70.40 13.26% Donaldson Co. Inc. (Symbol: DCI) $45.56 $51.33 12.67% Exxon Mobil Corp (Symbol: XOM) $47.14 $52.93 12.28% Archer Daniels Midland Co. (Symbol: ADM) $39.50 $44.00 11.39% Atmos Energy Corp. (Symbol: ATO) $101.08 $112.43 11.23% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Prosperity Bancshares Inc. (Symbol: PB) 2.96% 13.26% 16.22% Donaldson Co. Inc. (Symbol: DCI) 1.84% 12.67% 14.51% Exxon Mobil Corp (Symbol: XOM) 7.38% 12.28% 19.66% Archer Daniels Midland Co. (Symbol: ADM) 3.65% 11.39% 15.04% Atmos Energy Corp. (Symbol: ATO) 2.28% 11.23% 13.51% Another consideration with dividend growth stocks is just how much the dividend is growing. Prosperity Bancshares Inc. (Symbol: PB) $1.59 $1.79 12.58% Donaldson Co. Inc. (Symbol: DCI) $0.78 $0.84 7.69% Exxon Mobil Corp (Symbol: XOM) $3.33 $3.48 4.50% Archer Daniels Midland Co. (Symbol: ADM) $1.37 $1.42 3.65% Atmos Energy Corp. (Symbol: ATO) $2.06 $2.25 9.22% These five stocks are part of our full Dividend Aristocrats List. | 1305ece3-0167-471a-8627-1714ef6c39ca |
709778.0 | 2020-06-10 00:00:00 UTC | Ex-Dividend Reminder: Donaldson, ITT and Booz Allen Hamilton Holding | DCI | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-donaldson-itt-and-booz-allen-hamilton-holding-2020-06-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 6/12/20, Donaldson Co. Inc. (Symbol: DCI), ITT Inc (Symbol: ITT), and Booz Allen Hamilton Holding Corp. (Symbol: BAH) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. will pay its quarterly dividend of $0.21 on 6/30/20, ITT Inc will pay its quarterly dividend of $0.169 on 7/6/20, and Booz Allen Hamilton Holding Corp. will pay its quarterly dividend of $0.31 on 6/30/20. As a percentage of DCI's recent stock price of $49.51, this dividend works out to approximately 0.42%, so look for shares of Donaldson Co. Inc. to trade 0.42% lower — all else being equal — when DCI shares open for trading on 6/12/20. Similarly, investors should look for ITT to open 0.27% lower in price and for BAH to open 0.39% lower, all else being equal.
Below are dividend history charts for DCI, ITT, and BAH, showing historical dividends prior to the most recent ones declared.
Donaldson Co. Inc. (Symbol: DCI):
ITT Inc (Symbol: ITT):
Booz Allen Hamilton Holding Corp. (Symbol: BAH):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.70% for Donaldson Co. Inc., 1.10% for ITT Inc, and 1.54% for Booz Allen Hamilton Holding Corp..
In Wednesday trading, Donaldson Co. Inc. shares are currently down about 0.9%, ITT Inc shares are off about 1.8%, and Booz Allen Hamilton Holding Corp. shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of DCI's recent stock price of $49.51, this dividend works out to approximately 0.42%, so look for shares of Donaldson Co. Inc. to trade 0.42% lower — all else being equal — when DCI shares open for trading on 6/12/20. Looking at the universe of stocks we cover at Dividend Channel, on 6/12/20, Donaldson Co. Inc. (Symbol: DCI), ITT Inc (Symbol: ITT), and Booz Allen Hamilton Holding Corp. (Symbol: BAH) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DCI, ITT, and BAH, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 6/12/20, Donaldson Co. Inc. (Symbol: DCI), ITT Inc (Symbol: ITT), and Booz Allen Hamilton Holding Corp. (Symbol: BAH) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. (Symbol: DCI): ITT Inc (Symbol: ITT): Booz Allen Hamilton Holding Corp. (Symbol: BAH): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DCI's recent stock price of $49.51, this dividend works out to approximately 0.42%, so look for shares of Donaldson Co. Inc. to trade 0.42% lower — all else being equal — when DCI shares open for trading on 6/12/20. | Looking at the universe of stocks we cover at Dividend Channel, on 6/12/20, Donaldson Co. Inc. (Symbol: DCI), ITT Inc (Symbol: ITT), and Booz Allen Hamilton Holding Corp. (Symbol: BAH) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. (Symbol: DCI): ITT Inc (Symbol: ITT): Booz Allen Hamilton Holding Corp. (Symbol: BAH): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DCI's recent stock price of $49.51, this dividend works out to approximately 0.42%, so look for shares of Donaldson Co. Inc. to trade 0.42% lower — all else being equal — when DCI shares open for trading on 6/12/20. | Looking at the universe of stocks we cover at Dividend Channel, on 6/12/20, Donaldson Co. Inc. (Symbol: DCI), ITT Inc (Symbol: ITT), and Booz Allen Hamilton Holding Corp. (Symbol: BAH) will all trade ex-dividend for their respective upcoming dividends. As a percentage of DCI's recent stock price of $49.51, this dividend works out to approximately 0.42%, so look for shares of Donaldson Co. Inc. to trade 0.42% lower — all else being equal — when DCI shares open for trading on 6/12/20. Below are dividend history charts for DCI, ITT, and BAH, showing historical dividends prior to the most recent ones declared. | 0aa9258a-1e44-4a61-97d8-bc84c0a74961 |
709779.0 | 2020-06-05 00:00:00 UTC | Donaldson Terminates Purchase Offer For Exhaust And Emissions Business | DCI | https://www.nasdaq.com/articles/donaldson-terminates-purchase-offer-for-exhaust-and-emissions-business-2020-06-05 | nan | nan | (RTTNews) - Filtration products company Donaldson Co. Inc. (DCI), Friday said it has reached a mutual agreement with Nelson Global Products Inc. to terminate Nelson's previously disclosed purchase offer for Donaldson's Exhaust and Emissions business.
"While we are disappointed the acquisition of our E&E business by Nelson will not be completed, we remain focused on our employees, customers and suppliers," said Tod Carpenter, chairman, president and chief executive officer.
"Our E&E business is defined by an incredibly talented team, robust engineering capabilities and strong customer relationships. We remain committed to delivering quality emissions products in parallel with ongoing optimization efforts to ensure our business portfolio creates long-term value for our stakeholders."
Donaldson announced Nelson's purchase offer for its Exhaust and Emissions business on February 24, 2020.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Filtration products company Donaldson Co. Inc. (DCI), Friday said it has reached a mutual agreement with Nelson Global Products Inc. to terminate Nelson's previously disclosed purchase offer for Donaldson's Exhaust and Emissions business. "While we are disappointed the acquisition of our E&E business by Nelson will not be completed, we remain focused on our employees, customers and suppliers," said Tod Carpenter, chairman, president and chief executive officer. "Our E&E business is defined by an incredibly talented team, robust engineering capabilities and strong customer relationships. | (RTTNews) - Filtration products company Donaldson Co. Inc. (DCI), Friday said it has reached a mutual agreement with Nelson Global Products Inc. to terminate Nelson's previously disclosed purchase offer for Donaldson's Exhaust and Emissions business. We remain committed to delivering quality emissions products in parallel with ongoing optimization efforts to ensure our business portfolio creates long-term value for our stakeholders." Donaldson announced Nelson's purchase offer for its Exhaust and Emissions business on February 24, 2020. | (RTTNews) - Filtration products company Donaldson Co. Inc. (DCI), Friday said it has reached a mutual agreement with Nelson Global Products Inc. to terminate Nelson's previously disclosed purchase offer for Donaldson's Exhaust and Emissions business. "While we are disappointed the acquisition of our E&E business by Nelson will not be completed, we remain focused on our employees, customers and suppliers," said Tod Carpenter, chairman, president and chief executive officer. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Filtration products company Donaldson Co. Inc. (DCI), Friday said it has reached a mutual agreement with Nelson Global Products Inc. to terminate Nelson's previously disclosed purchase offer for Donaldson's Exhaust and Emissions business. "While we are disappointed the acquisition of our E&E business by Nelson will not be completed, we remain focused on our employees, customers and suppliers," said Tod Carpenter, chairman, president and chief executive officer. "Our E&E business is defined by an incredibly talented team, robust engineering capabilities and strong customer relationships. | b5645f74-2006-4e88-a7ce-00432ce5d907 |
709780.0 | 2020-06-02 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Raytheon, Planet Fitness, Lands End | DCI | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-raytheon-planet-fitness-lands-end-2020-06-02 | nan | nan | Eikon search string for individual stock moves: STXBZ
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U.S. stocks indexes The S&P 500 and the Dow Jones hit three-month highs on Tuesday as optimism about the reopening of the economy after weeks of coronavirus lockdowns countered concern over more disruptions from the street protests spread across the country .N
At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.75% at 25,667.13. The S&P 500 .SPX was up 0.44% at 3,069.21 and the Nasdaq Composite .IXIC was up 0.09% at 9,560.332. The top three S&P 500 .PG.INX percentage gainers: ** Western Union , up 10.9% ** SL Green Realty , up 8.4% ** Everest Re Group , up 6.9% The top three S&P 500 .PL.INX percentage losers: ** NortonLifeLock , down 5.1% ** Newmont Corp , down 3.4% ** Alexion Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Spdr Factset Innovative Technology Etf , up 39.6% ** Dxn Japan , up 36.6% ** Gol Linhas Aereas Inteligentes SA , up 19.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil , down 10.2% ** Guggenheim Enhanced Equity Income Fund , down 9% ** International Seaways Inc , down 8.4% The top three Nasdaq .PG.O percentage gainers: ** Ameri Holdings , up 164.6% ** Genius Brands International , up 37% ** Moneygram International , up 34.9% The top three Nasdaq .PL.O percentage losers: ** Aduro Biotch Inc , down 17.4% ** The Lovesac Co , down 16.5% ** Ideaya Biosciences Inc , down 15.7% ** Planet Fitness Inc PLNT.N: up 7.2%
BUZZ- Gains as centers re-open, memberships rise ** Stratasys Ltd SSYS.O: up 11.3%
BUZZ- Rises after strategic resizing plan; J.P. Morgan upgrades ** Raytheon Technologies corp RTX.N: down 0.2%
BUZZ-: Falls as 2020 cash flow forecast misses Street estimate ** Lands End Inc LE.O: down 11.6%
BUZZ- Falls on dismal outlook, prelim Q1 loss widens ** Donaldson Company Inc DCI.N: up 3.1%
BUZZ-: Gains on better-than-expected Q3 results ** Cemtrex Inx CETX.O: down 29.5%
BUZZ- Retreats on equity raise after stock triples ** HollyFrontier corp HFC.N: up 3.9%
BUZZ-Brokerage TPH says HollyFrontier a compelling buy, upgrades ** Idera Pharmaceuticals Inc IDRA.O: up 22.7%
BUZZ- Gains on positive data from bowel cancer drug study ** Dick's Sporting Goods Inc DKS.N: up 2.2%
BUZZ-: Rises as online sales surge, outlets reopen ** Citius Pharmaceuticals Inc CTXR.O: up 2.1%
BUZZ- Up on FDA feedback for plan to study catheter infection therapy ** Baozun Inc BZUN.O: up 11.6%
BUZZ- Jumps on strong Q1 results ** Virgin Galactic Holdings Inc SPCE.N: down 7.4%
BUZZ- Drops as Richard Branson looks to sell more shares ** MoneyGram International Inc MGI.O: up 34.9% ** Western Union Co WU.N: up 10.9%
BUZZ-MoneyGram soars on report of Western Union takeover offer ** QTS Realty Inc QTS.N: down 3.5%
BUZZ-Data center operator slips after pricing upsized stock offering ** Lululemon athletica Inc LULU.O: up 1.4%
BUZZ- Slips as Wells Fargo downgrades on "significant" rally, consumer risks ** Trevena Inc TRVN.O: up 3.8%
BUZZ- Jumps on plan to test drug for COVID-19 treatment ** Visa Inc V.N: up 0.6%
BUZZ- SunTrust hikes PT, estimates as growth in U.S. payment volume improves ** Seadrill Ltd SDRL.N: down 22.3%
BUZZ- Slumps on $1.2 bln write-off, potential debt conversion ** Wayfair Inc W.N: up 12.9%
BUZZ- Piper Sandler sets Street-high PT on strengthening online sales ** Zynga Inc ZNGA.O: down 1.2%
BUZZ-Street View: Zynga's growth to see new 'peaks' with latest deal ** Tellurian Inc TELL.O: down 7.1%
BUZZ- Stifel says no residual value to equity, cuts to 'sell' ** Slack Technologies Inc WORK.N: up 1.3%
BUZZ- Rises as Cowen initiates with 'outperform' ** Regeneron Pharmaceuticals Inc REGN.O: up 1.5%
BUZZ- Oncology momentum builds with broad portfolio- Cantor ** Moleculin Biotech Inc MBRX.O: down 5.2%
BUZZ- Rises as pediatric brain tumor drug trial begins ** Build-A-Bear Workshop Inc BBW.N: down 2.7%
BUZZ- Drops as revenue plunges on COVID-19-driven store closures ** Marathon Patent Group Inc MARA.O: up 10.3% ** Riot Blockchain Inc RIOT.O: up 7.9% ** Xunlei Ltd XNET.O: up 2.8%
BUZZ-Blockchain, crypto shares rise as Bitcoin hits 3-month high ** Agenus Inc AGEN.O: down 4.0%
BUZZ-Agenus Inc: Rises on FDA nod for testing cell therapy for COVID-19 ** Digital Ally Inc DGLY.O: down 15.2%
BUZZ- Slumps on discounted stock offering ** Aduro Biotech Inc ADRO.O: down 17.4%
BUZZ- Rises on merger deal with Chinook Therapeutics ** BioHiTech Global Inc BHTG.O: up 31.3%
BUZZ-: Soars on COVID-19 disinfectant distribution deal ** Tenax Therapeutics Inc TENX.O: up 23.4%
BUZZ-surges on data from heart disorder treatment trial
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.28%
Consumer Discretionary
.SPLRCD
up 0.36%
Consumer Staples
.SPLRCS
down 0.20%
Energy
.SPNY
up 2.00%
Financial
.SPSY
up 1.29%
Health
.SPXHC
up 0.14%
Industrial
.SPLRCI
up 1.46%
Information Technology
.SPLRCT
up 0.14%
Materials
.SPLRCM
up 1.80%
Real Estate
.SPLRCR
up 0.67%
Utilities
.SPLRCU
up 0.39%
(Compiled by Shivani Kumaresan in Bengaluru)
((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three S&P 500 .PG.INX percentage gainers: ** Western Union , up 10.9% ** SL Green Realty , up 8.4% ** Everest Re Group , up 6.9% The top three S&P 500 .PL.INX percentage losers: ** NortonLifeLock , down 5.1% ** Newmont Corp , down 3.4% ** Alexion Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Spdr Factset Innovative Technology Etf , up 39.6% ** Dxn Japan , up 36.6% ** Gol Linhas Aereas Inteligentes SA , up 19.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil , down 10.2% ** Guggenheim Enhanced Equity Income Fund , down 9% ** International Seaways Inc , down 8.4% The top three Nasdaq .PG.O percentage gainers: ** Ameri Holdings , up 164.6% ** Genius Brands International , up 37% ** Moneygram International , up 34.9% The top three Nasdaq .PL.O percentage losers: ** Aduro Biotch Inc , down 17.4% ** The Lovesac Co , down 16.5% ** Ideaya Biosciences Inc , down 15.7% ** Planet Fitness Inc PLNT.N: up 7.2% BUZZ- Gains as centers re-open, memberships rise ** Stratasys Ltd SSYS.O: up 11.3% BUZZ- Rises after strategic resizing plan; J.P. Morgan upgrades ** Raytheon Technologies corp RTX.N: down 0.2% BUZZ-: Falls as 2020 cash flow forecast misses Street estimate ** Lands End Inc LE.O: down 11.6% BUZZ- Falls on dismal outlook, prelim Q1 loss widens ** Donaldson Company Inc DCI.N: up 3.1% BUZZ-: Gains on better-than-expected Q3 results ** Cemtrex Inx CETX.O: down 29.5% BUZZ- Retreats on equity raise after stock triples ** HollyFrontier corp HFC.N: up 3.9% BUZZ-Brokerage TPH says HollyFrontier a compelling buy, upgrades ** Idera Pharmaceuticals Inc IDRA.O: up 22.7% BUZZ- Gains on positive data from bowel cancer drug study ** Dick's Sporting Goods Inc DKS.N: up 2.2% BUZZ-: Rises as online sales surge, outlets reopen ** Citius Pharmaceuticals Inc CTXR.O: up 2.1% BUZZ- Up on FDA feedback for plan to study catheter infection therapy ** Baozun Inc BZUN.O: up 11.6% BUZZ- Jumps on strong Q1 results ** Virgin Galactic Holdings Inc SPCE.N: down 7.4% BUZZ- Drops as Richard Branson looks to sell more shares ** MoneyGram International Inc MGI.O: up 34.9% ** Western Union Co WU.N: up 10.9% BUZZ-MoneyGram soars on report of Western Union takeover offer ** QTS Realty Inc QTS.N: down 3.5% BUZZ-Data center operator slips after pricing upsized stock offering ** Lululemon athletica Inc LULU.O: up 1.4% BUZZ- Slips as Wells Fargo downgrades on "significant" rally, consumer risks ** Trevena Inc TRVN.O: up 3.8% BUZZ- Jumps on plan to test drug for COVID-19 treatment ** Visa Inc V.N: up 0.6% BUZZ- SunTrust hikes PT, estimates as growth in U.S. payment volume improves ** Seadrill Ltd SDRL.N: down 22.3% BUZZ- Slumps on $1.2 bln write-off, potential debt conversion ** Wayfair Inc W.N: up 12.9% BUZZ- Piper Sandler sets Street-high PT on strengthening online sales ** Zynga Inc ZNGA.O: down 1.2% BUZZ-Street View: Zynga's growth to see new 'peaks' with latest deal ** Tellurian Inc TELL.O: down 7.1% BUZZ- Stifel says no residual value to equity, cuts to 'sell' ** Slack Technologies Inc WORK.N: up 1.3% BUZZ- Rises as Cowen initiates with 'outperform' ** Regeneron Pharmaceuticals Inc REGN.O: up 1.5% BUZZ- Oncology momentum builds with broad portfolio- Cantor ** Moleculin Biotech Inc MBRX.O: down 5.2% BUZZ- Rises as pediatric brain tumor drug trial begins ** Build-A-Bear Workshop Inc BBW.N: down 2.7% BUZZ- Drops as revenue plunges on COVID-19-driven store closures ** Marathon Patent Group Inc MARA.O: up 10.3% ** Riot Blockchain Inc RIOT.O: up 7.9% ** Xunlei Ltd XNET.O: up 2.8% BUZZ-Blockchain, crypto shares rise as Bitcoin hits 3-month high ** Agenus Inc AGEN.O: down 4.0% BUZZ-Agenus Inc: Rises on FDA nod for testing cell therapy for COVID-19 ** Digital Ally Inc DGLY.O: down 15.2% BUZZ- Slumps on discounted stock offering ** Aduro Biotech Inc ADRO.O: down 17.4% BUZZ- Rises on merger deal with Chinook Therapeutics ** BioHiTech Global Inc BHTG.O: up 31.3% BUZZ-: Soars on COVID-19 disinfectant distribution deal ** Tenax Therapeutics Inc TENX.O: up 23.4% BUZZ-surges on data from heart disorder treatment trial The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks indexes The S&P 500 and the Dow Jones hit three-month highs on Tuesday as optimism about the reopening of the economy after weeks of coronavirus lockdowns countered concern over more disruptions from the street protests spread across the country .N At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.75% at 25,667.13. up 0.39% (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three S&P 500 .PG.INX percentage gainers: ** Western Union , up 10.9% ** SL Green Realty , up 8.4% ** Everest Re Group , up 6.9% The top three S&P 500 .PL.INX percentage losers: ** NortonLifeLock , down 5.1% ** Newmont Corp , down 3.4% ** Alexion Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Spdr Factset Innovative Technology Etf , up 39.6% ** Dxn Japan , up 36.6% ** Gol Linhas Aereas Inteligentes SA , up 19.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil , down 10.2% ** Guggenheim Enhanced Equity Income Fund , down 9% ** International Seaways Inc , down 8.4% The top three Nasdaq .PG.O percentage gainers: ** Ameri Holdings , up 164.6% ** Genius Brands International , up 37% ** Moneygram International , up 34.9% The top three Nasdaq .PL.O percentage losers: ** Aduro Biotch Inc , down 17.4% ** The Lovesac Co , down 16.5% ** Ideaya Biosciences Inc , down 15.7% ** Planet Fitness Inc PLNT.N: up 7.2% BUZZ- Gains as centers re-open, memberships rise ** Stratasys Ltd SSYS.O: up 11.3% BUZZ- Rises after strategic resizing plan; J.P. Morgan upgrades ** Raytheon Technologies corp RTX.N: down 0.2% BUZZ-: Falls as 2020 cash flow forecast misses Street estimate ** Lands End Inc LE.O: down 11.6% BUZZ- Falls on dismal outlook, prelim Q1 loss widens ** Donaldson Company Inc DCI.N: up 3.1% BUZZ-: Gains on better-than-expected Q3 results ** Cemtrex Inx CETX.O: down 29.5% BUZZ- Retreats on equity raise after stock triples ** HollyFrontier corp HFC.N: up 3.9% BUZZ-Brokerage TPH says HollyFrontier a compelling buy, upgrades ** Idera Pharmaceuticals Inc IDRA.O: up 22.7% BUZZ- Gains on positive data from bowel cancer drug study ** Dick's Sporting Goods Inc DKS.N: up 2.2% BUZZ-: Rises as online sales surge, outlets reopen ** Citius Pharmaceuticals Inc CTXR.O: up 2.1% BUZZ- Up on FDA feedback for plan to study catheter infection therapy ** Baozun Inc BZUN.O: up 11.6% BUZZ- Jumps on strong Q1 results ** Virgin Galactic Holdings Inc SPCE.N: down 7.4% BUZZ- Drops as Richard Branson looks to sell more shares ** MoneyGram International Inc MGI.O: up 34.9% ** Western Union Co WU.N: up 10.9% BUZZ-MoneyGram soars on report of Western Union takeover offer ** QTS Realty Inc QTS.N: down 3.5% BUZZ-Data center operator slips after pricing upsized stock offering ** Lululemon athletica Inc LULU.O: up 1.4% BUZZ- Slips as Wells Fargo downgrades on "significant" rally, consumer risks ** Trevena Inc TRVN.O: up 3.8% BUZZ- Jumps on plan to test drug for COVID-19 treatment ** Visa Inc V.N: up 0.6% BUZZ- SunTrust hikes PT, estimates as growth in U.S. payment volume improves ** Seadrill Ltd SDRL.N: down 22.3% BUZZ- Slumps on $1.2 bln write-off, potential debt conversion ** Wayfair Inc W.N: up 12.9% BUZZ- Piper Sandler sets Street-high PT on strengthening online sales ** Zynga Inc ZNGA.O: down 1.2% BUZZ-Street View: Zynga's growth to see new 'peaks' with latest deal ** Tellurian Inc TELL.O: down 7.1% BUZZ- Stifel says no residual value to equity, cuts to 'sell' ** Slack Technologies Inc WORK.N: up 1.3% BUZZ- Rises as Cowen initiates with 'outperform' ** Regeneron Pharmaceuticals Inc REGN.O: up 1.5% BUZZ- Oncology momentum builds with broad portfolio- Cantor ** Moleculin Biotech Inc MBRX.O: down 5.2% BUZZ- Rises as pediatric brain tumor drug trial begins ** Build-A-Bear Workshop Inc BBW.N: down 2.7% BUZZ- Drops as revenue plunges on COVID-19-driven store closures ** Marathon Patent Group Inc MARA.O: up 10.3% ** Riot Blockchain Inc RIOT.O: up 7.9% ** Xunlei Ltd XNET.O: up 2.8% BUZZ-Blockchain, crypto shares rise as Bitcoin hits 3-month high ** Agenus Inc AGEN.O: down 4.0% BUZZ-Agenus Inc: Rises on FDA nod for testing cell therapy for COVID-19 ** Digital Ally Inc DGLY.O: down 15.2% BUZZ- Slumps on discounted stock offering ** Aduro Biotech Inc ADRO.O: down 17.4% BUZZ- Rises on merger deal with Chinook Therapeutics ** BioHiTech Global Inc BHTG.O: up 31.3% BUZZ-: Soars on COVID-19 disinfectant distribution deal ** Tenax Therapeutics Inc TENX.O: up 23.4% BUZZ-surges on data from heart disorder treatment trial The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks indexes The S&P 500 and the Dow Jones hit three-month highs on Tuesday as optimism about the reopening of the economy after weeks of coronavirus lockdowns countered concern over more disruptions from the street protests spread across the country .N At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.75% at 25,667.13. up 0.39% (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three S&P 500 .PG.INX percentage gainers: ** Western Union , up 10.9% ** SL Green Realty , up 8.4% ** Everest Re Group , up 6.9% The top three S&P 500 .PL.INX percentage losers: ** NortonLifeLock , down 5.1% ** Newmont Corp , down 3.4% ** Alexion Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Spdr Factset Innovative Technology Etf , up 39.6% ** Dxn Japan , up 36.6% ** Gol Linhas Aereas Inteligentes SA , up 19.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil , down 10.2% ** Guggenheim Enhanced Equity Income Fund , down 9% ** International Seaways Inc , down 8.4% The top three Nasdaq .PG.O percentage gainers: ** Ameri Holdings , up 164.6% ** Genius Brands International , up 37% ** Moneygram International , up 34.9% The top three Nasdaq .PL.O percentage losers: ** Aduro Biotch Inc , down 17.4% ** The Lovesac Co , down 16.5% ** Ideaya Biosciences Inc , down 15.7% ** Planet Fitness Inc PLNT.N: up 7.2% BUZZ- Gains as centers re-open, memberships rise ** Stratasys Ltd SSYS.O: up 11.3% BUZZ- Rises after strategic resizing plan; J.P. Morgan upgrades ** Raytheon Technologies corp RTX.N: down 0.2% BUZZ-: Falls as 2020 cash flow forecast misses Street estimate ** Lands End Inc LE.O: down 11.6% BUZZ- Falls on dismal outlook, prelim Q1 loss widens ** Donaldson Company Inc DCI.N: up 3.1% BUZZ-: Gains on better-than-expected Q3 results ** Cemtrex Inx CETX.O: down 29.5% BUZZ- Retreats on equity raise after stock triples ** HollyFrontier corp HFC.N: up 3.9% BUZZ-Brokerage TPH says HollyFrontier a compelling buy, upgrades ** Idera Pharmaceuticals Inc IDRA.O: up 22.7% BUZZ- Gains on positive data from bowel cancer drug study ** Dick's Sporting Goods Inc DKS.N: up 2.2% BUZZ-: Rises as online sales surge, outlets reopen ** Citius Pharmaceuticals Inc CTXR.O: up 2.1% BUZZ- Up on FDA feedback for plan to study catheter infection therapy ** Baozun Inc BZUN.O: up 11.6% BUZZ- Jumps on strong Q1 results ** Virgin Galactic Holdings Inc SPCE.N: down 7.4% BUZZ- Drops as Richard Branson looks to sell more shares ** MoneyGram International Inc MGI.O: up 34.9% ** Western Union Co WU.N: up 10.9% BUZZ-MoneyGram soars on report of Western Union takeover offer ** QTS Realty Inc QTS.N: down 3.5% BUZZ-Data center operator slips after pricing upsized stock offering ** Lululemon athletica Inc LULU.O: up 1.4% BUZZ- Slips as Wells Fargo downgrades on "significant" rally, consumer risks ** Trevena Inc TRVN.O: up 3.8% BUZZ- Jumps on plan to test drug for COVID-19 treatment ** Visa Inc V.N: up 0.6% BUZZ- SunTrust hikes PT, estimates as growth in U.S. payment volume improves ** Seadrill Ltd SDRL.N: down 22.3% BUZZ- Slumps on $1.2 bln write-off, potential debt conversion ** Wayfair Inc W.N: up 12.9% BUZZ- Piper Sandler sets Street-high PT on strengthening online sales ** Zynga Inc ZNGA.O: down 1.2% BUZZ-Street View: Zynga's growth to see new 'peaks' with latest deal ** Tellurian Inc TELL.O: down 7.1% BUZZ- Stifel says no residual value to equity, cuts to 'sell' ** Slack Technologies Inc WORK.N: up 1.3% BUZZ- Rises as Cowen initiates with 'outperform' ** Regeneron Pharmaceuticals Inc REGN.O: up 1.5% BUZZ- Oncology momentum builds with broad portfolio- Cantor ** Moleculin Biotech Inc MBRX.O: down 5.2% BUZZ- Rises as pediatric brain tumor drug trial begins ** Build-A-Bear Workshop Inc BBW.N: down 2.7% BUZZ- Drops as revenue plunges on COVID-19-driven store closures ** Marathon Patent Group Inc MARA.O: up 10.3% ** Riot Blockchain Inc RIOT.O: up 7.9% ** Xunlei Ltd XNET.O: up 2.8% BUZZ-Blockchain, crypto shares rise as Bitcoin hits 3-month high ** Agenus Inc AGEN.O: down 4.0% BUZZ-Agenus Inc: Rises on FDA nod for testing cell therapy for COVID-19 ** Digital Ally Inc DGLY.O: down 15.2% BUZZ- Slumps on discounted stock offering ** Aduro Biotech Inc ADRO.O: down 17.4% BUZZ- Rises on merger deal with Chinook Therapeutics ** BioHiTech Global Inc BHTG.O: up 31.3% BUZZ-: Soars on COVID-19 disinfectant distribution deal ** Tenax Therapeutics Inc TENX.O: up 23.4% BUZZ-surges on data from heart disorder treatment trial The 11 major S&P 500 sectors: Communication Services up 1.80% Real Estate up 0.67% Utilities | The top three S&P 500 .PG.INX percentage gainers: ** Western Union , up 10.9% ** SL Green Realty , up 8.4% ** Everest Re Group , up 6.9% The top three S&P 500 .PL.INX percentage losers: ** NortonLifeLock , down 5.1% ** Newmont Corp , down 3.4% ** Alexion Pharmaceuticals Inc , down 2.8% The top three NYSE .PG.N percentage gainers: ** Spdr Factset Innovative Technology Etf , up 39.6% ** Dxn Japan , up 36.6% ** Gol Linhas Aereas Inteligentes SA , up 19.3% The top three NYSE .PL.N percentage losers: ** ProShares UltraShort MSCI Brazil , down 10.2% ** Guggenheim Enhanced Equity Income Fund , down 9% ** International Seaways Inc , down 8.4% The top three Nasdaq .PG.O percentage gainers: ** Ameri Holdings , up 164.6% ** Genius Brands International , up 37% ** Moneygram International , up 34.9% The top three Nasdaq .PL.O percentage losers: ** Aduro Biotch Inc , down 17.4% ** The Lovesac Co , down 16.5% ** Ideaya Biosciences Inc , down 15.7% ** Planet Fitness Inc PLNT.N: up 7.2% BUZZ- Gains as centers re-open, memberships rise ** Stratasys Ltd SSYS.O: up 11.3% BUZZ- Rises after strategic resizing plan; J.P. Morgan upgrades ** Raytheon Technologies corp RTX.N: down 0.2% BUZZ-: Falls as 2020 cash flow forecast misses Street estimate ** Lands End Inc LE.O: down 11.6% BUZZ- Falls on dismal outlook, prelim Q1 loss widens ** Donaldson Company Inc DCI.N: up 3.1% BUZZ-: Gains on better-than-expected Q3 results ** Cemtrex Inx CETX.O: down 29.5% BUZZ- Retreats on equity raise after stock triples ** HollyFrontier corp HFC.N: up 3.9% BUZZ-Brokerage TPH says HollyFrontier a compelling buy, upgrades ** Idera Pharmaceuticals Inc IDRA.O: up 22.7% BUZZ- Gains on positive data from bowel cancer drug study ** Dick's Sporting Goods Inc DKS.N: up 2.2% BUZZ-: Rises as online sales surge, outlets reopen ** Citius Pharmaceuticals Inc CTXR.O: up 2.1% BUZZ- Up on FDA feedback for plan to study catheter infection therapy ** Baozun Inc BZUN.O: up 11.6% BUZZ- Jumps on strong Q1 results ** Virgin Galactic Holdings Inc SPCE.N: down 7.4% BUZZ- Drops as Richard Branson looks to sell more shares ** MoneyGram International Inc MGI.O: up 34.9% ** Western Union Co WU.N: up 10.9% BUZZ-MoneyGram soars on report of Western Union takeover offer ** QTS Realty Inc QTS.N: down 3.5% BUZZ-Data center operator slips after pricing upsized stock offering ** Lululemon athletica Inc LULU.O: up 1.4% BUZZ- Slips as Wells Fargo downgrades on "significant" rally, consumer risks ** Trevena Inc TRVN.O: up 3.8% BUZZ- Jumps on plan to test drug for COVID-19 treatment ** Visa Inc V.N: up 0.6% BUZZ- SunTrust hikes PT, estimates as growth in U.S. payment volume improves ** Seadrill Ltd SDRL.N: down 22.3% BUZZ- Slumps on $1.2 bln write-off, potential debt conversion ** Wayfair Inc W.N: up 12.9% BUZZ- Piper Sandler sets Street-high PT on strengthening online sales ** Zynga Inc ZNGA.O: down 1.2% BUZZ-Street View: Zynga's growth to see new 'peaks' with latest deal ** Tellurian Inc TELL.O: down 7.1% BUZZ- Stifel says no residual value to equity, cuts to 'sell' ** Slack Technologies Inc WORK.N: up 1.3% BUZZ- Rises as Cowen initiates with 'outperform' ** Regeneron Pharmaceuticals Inc REGN.O: up 1.5% BUZZ- Oncology momentum builds with broad portfolio- Cantor ** Moleculin Biotech Inc MBRX.O: down 5.2% BUZZ- Rises as pediatric brain tumor drug trial begins ** Build-A-Bear Workshop Inc BBW.N: down 2.7% BUZZ- Drops as revenue plunges on COVID-19-driven store closures ** Marathon Patent Group Inc MARA.O: up 10.3% ** Riot Blockchain Inc RIOT.O: up 7.9% ** Xunlei Ltd XNET.O: up 2.8% BUZZ-Blockchain, crypto shares rise as Bitcoin hits 3-month high ** Agenus Inc AGEN.O: down 4.0% BUZZ-Agenus Inc: Rises on FDA nod for testing cell therapy for COVID-19 ** Digital Ally Inc DGLY.O: down 15.2% BUZZ- Slumps on discounted stock offering ** Aduro Biotech Inc ADRO.O: down 17.4% BUZZ- Rises on merger deal with Chinook Therapeutics ** BioHiTech Global Inc BHTG.O: up 31.3% BUZZ-: Soars on COVID-19 disinfectant distribution deal ** Tenax Therapeutics Inc TENX.O: up 23.4% BUZZ-surges on data from heart disorder treatment trial The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stocks indexes The S&P 500 and the Dow Jones hit three-month highs on Tuesday as optimism about the reopening of the economy after weeks of coronavirus lockdowns countered concern over more disruptions from the street protests spread across the country .N At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.75% at 25,667.13. The S&P 500 .SPX was up 0.44% at 3,069.21 and the Nasdaq Composite .IXIC was up 0.09% at 9,560.332. | 9bf8d3bf-eb21-4def-8522-358e2692a393 |
709781.0 | 2020-06-02 00:00:00 UTC | Donaldson Co (DCI) Q3 2020 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q3-2020-earnings-call-transcript-2020-06-02 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q3 2020 Earnings Call
Jun 2, 2020, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by. And welcome to Donaldson's Fiscal 2020 Third Quarter Earnings Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].
I would now like to hand the conference over to your first speaker today, Brad Pogalz, Director of Investor Relations. Thank you. Please go ahead, sir.
Brad Pogalz -- Director of Investor Relations
Thanks, Julianne. Good morning, everyone. Thank you all for joining Donaldson's third quarter 2020earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our third quarter performance, including an overview of how we are navigating the complexities created by the coronavirus pandemic.
I want to remind everyone that we issued a Business Update press release on April 28, which included some details that we will reference on this morning's call. During today's call, we will also reference non-GAAP metrics. We included a reconciliation of GAAP to non-GAAP metrics within the schedules attached to this morning's press release.
Finally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Brad. Good morning, everyone. I hope that all of you and your families are staying safe as we deal with these unprecedented times. One thing the pandemic has brought to light is the hard work of everyday heroes. So I want to express our profound appreciation for the frontline workers that keep the world moving forward and that includes thousands of Donaldson employees.
I'm always impressed by our employees. But I'm particularly proud of their performance during the pandemic. Every day, they show up with relentless customer-first attitude, which is more important than ever as we support critical markets like agriculture, transportation, and food and beverage. To my Donaldson colleagues around the world, thank you for everything you do.
Since the outbreak began, our decision making has been guided by three priorities, supporting the health and safety of our employees, delivering on our customer commitments and doing our part in reducing the transmission of the virus. Providing a safe work environment is always a top priority, but we intensified our efforts. We have significantly limited business travel, implemented a thorough cleaning regimen in factories and office spaces, instituted remote work policies for all that are able and introduced COVID-related paid leave while promoting existing employee assistance programs.
Our crisis response team reviews these protocols regularly and we adjust when appropriate. Social distancing practices and enhanced cleaning schedules will be in place for the foreseeable future and we are reopening our offices in various locations around the world. The pace of bringing our employees back to the office will be dictated by guidance from health experts along with our own assessments of workplace readiness. We are taking a cautious approach and we will remain flexible as we execute these plans.
I also want to provide an update on the status of our operations. Overall, we're in a good position and have not experienced meaningful disruption. Our success can be attributed to a handful of factors, starting with our footprint. We have a region to support region production strategy and that allows us to be nimble and flex appropriately based on local conditions. That has been incredibly valuable as the pandemic affected different parts of the world in different ways, at different times. Additionally, our defense -- our diverse portfolio of businesses is heavily biased toward replacement parts and essential or critical markets giving us the opportunity to continue production during government-mandated shutdowns.
These structural benefits have been brought to life by our excellent team. There has been an unprecedented level of collaboration and coordination among us, our suppliers and our customers, and our teams are acting quickly and decisively to mitigate risks and deliver on our commitments. Of course, things are still uneven. So I want to provide a run down of our operational situation today.
The Asia-Pacific region is in recovery mode with China furthest along. Conditions in India are still tighter than other countries, but that has been loosening, and we are on a good path. Europe is in various stages of reopening and our supply chain risk has gone down over the past month. The temporary shutdowns due to government mandates have been lifted and we are stabilizing rapidly. The Americas are further behind on the recovery curve with varying degrees of lockdowns continuing in South America, while large customers in North America only recently began reopening their factories.
The global situation has been improving in recent weeks. All our critical suppliers are online and our production employees are at work and engaged. Based on these factors, I am confident we can continue supporting our customers around the world. I'm going to turn now to a brief overview of our third quarter sales, which were slightly better than we expected based on a strong finish in April.
Total sales for the quarter were down 11.7% from the prior year, or 9.7% without the currency headwind. Engine segment sales were down 14%, reflecting a sharp decline in our first-fit businesses. While it is impossible to precisely estimate the impact of COVID-19 on our results, our first-fit businesses were clearly under pressure as many large customers stopped producing equipment during the quarter.
In our On-Road, sales were down 47% as customer shutdowns were compounded by an already weak truck market in the US and China. As a reminder, our first-fit On-Road business is only about 5% of total revenue. So our aggregate exposure to the truck market is limited. In the US, which is the largest portion of our On-Road business, third-party data indicates that our sales fared better than total Class 8 truck production. Based on our track record of program wins, we are well positioned to have a strong performance when this market recovers.
Third quarter sales of Off-Road products were down 25%, with more than half the decline coming from Exhaust and Emissions. We are comparing against a large increase in Europe last year related to pre-buys for an upcoming regulatory change. So we expected pressure this fiscal year. As a side note, we continue to work on the transaction related to the sale of our Exhaust and Emissions business to Nelson Global Products. We will provide more details as we have them, but for now, I want to reiterate our commitment to the strong relationships we have with our employees, customers and suppliers.
Excluding Exhaust and Emissions, third quarter sales of our filtration-related Off-Road products were down in the mid-teens. On a relative basis, products for the agriculture market performed better than the construction and mining markets, and overall global demand for new equipment remains under pressure. Engine Aftermarket performed much better than our first-fit businesses in the quarter and results were mixed by channel and region.
The total aftermarket decline of 8% was primarily due to a low double-digit decline in sales through the independent channel. The pandemic is contributing to lower equipment utilization and that impact was compounded in the US by the collapse of the oil and gas market. Economic and geopolitical uncertainty in Latin America added to the pressure, but share gains in Eastern Europe and China were notable offsets as we build our presence in these markets.
Sales through the OE channel of Aftermarket were down only slightly in the quarter and up in local currency. We believe a portion of the demand was from large OE customers buying inventory ahead of need, so we expect additional volatility in future periods. Rounding out the Engine segment, sales of Aerospace and Defense were about flat with last year. As expected, the commercial fixed-wing market is under pressure, but we were able to largely offset the impact with growth in filters for ground defense vehicles and helicopters.
Turning to the Industrial segment, sales were down 6% in third quarter, driven by a 12% decline in Industrial Filtration Solutions or IFS. Our dust collection business, which makes up 60% of IFS, was hit hard by the pandemic. Our quoting activity and replacement demand were under pressure as economic uncertainty went up and global industrial production dropped. We remain confident in our value proposition and expect that quoting will go back up as the economy reopens, but it is too soon to say how long that will take.
But, we are not just waiting for the recovery. Our industrial air filtration team has done an excellent job, engaging our customers with things like virtual trainings, reinforcing our brand as a strategic and supportive partner. The pandemic has also given us an opportunity to demonstrate our value proposition in Process Filtration. Sales in Europe and the US, our two largest markets, were both up year-over-year, and in local currency. Sales for all Process Filtration were up in the low single digits. We continue to expand our share in the food and beverage market and this business remains a strong contributor to our future growth and profit margin expansion.
Third quarter sales in Gas Turbine Systems or GTS were up 6% driven by strong sales for retrofit projects. Like the large turbine projects, retrofit sales can be lumpy. We had a solid performance last quarter and we remain very proud of the improved profitability in GTS. Special Applications' sales were up 5% in the third quarter, driven by strong growth in Disk Drive and Venting Solutions.
Our Disk Drive business continues to benefit from share gains and increased expansion of nearline storage for the cloud and growth in venting is related to value-added solutions for batteries and powertrains in passenger cars. Given the state of the auto industry, the venting performance was particularly impressive. We are leveraging our technology and pressing into a new market to meet an expanding need.
There are powerful examples across the company of how innovation is driving results and the pandemic has not changed our long-term priorities. I'll talk more about that later. Before turning the call to Scott, I want to provide a few comments on trends in May. Total sales for the month are expected to be down about 24% from last year. Many of our large OE customers reopened facilities in the month, but we did not see much of a rebound, which may relate to the inventory building that occurred during our third quarter.
On a regional basis, sales trends are consistent with what we saw in third quarter. Asia-Pacific is performing the best, while sales in the Americas are the weakest. Sales in China were up in the month, which is the best performance we've seen in a while, but there is also quite a bit of uncertainty related to the durability of the increase. So we are more cautious than optimistic at this point. The situation in both North and South America remains challenging and it is hard to find bright spots in those geographies today.
In terms of product sales, replacement parts are predictably doing better than new equipment. Businesses like Engine Aftermarket and Process Filtration offer a bit of relative stability, while new equipment production for engine-related products and capital investment for dust collection systems were still under pressure.
While we would not typically go into detail on the current quarter trends, we felt it was important to give a little more context, given the extraordinary pace of change. As we contemplate the final two months of this fiscal year and our plans for fiscal '21, we will remain focused on executing those things under our control, including promoting the safety and well-being of our employees, maintaining tight control on discretionary expenses, making targeted investments to support near and long-term growth priorities and protecting the strength of our financial position.
I'll now turn the call to Scott for an update on our other key metrics. Scott?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Good morning, everyone. I want to echo Tod's sentiment. Donaldson has great employees. The way we work has changed rapidly during the pandemic and our teams have stayed connected, remained productive and delivered results. I want to thank our employees around the world for everything you're doing to keep us moving forward.
As predicted, third quarter was a volatile period, the demand environment deteriorated per month demand and things became more uncertain as COVID-19 spread broadly. Unfortunately, the situation is still unclear. Economic conditions are varied by region and market, resulting in an uneven and unpredictable demand. Given that, we feel it's prudent to continue to withhold fiscal '20 and '21 guidance for our key financial metrics.
I will however talk about some general expectations during my remarks, so I'll turn now to a recap of third quarter performance. All things considered, we are in a good position today. Despite a sales decline of 12%, our third quarter EBITDA margin was flat with the prior year. Additionally, our decremental margin was about 19%, which is significantly better than our historic average in the mid to high 20% range. The favorability was due in part to the product mix and lower incentive compensation. So let me take you through some of the puts and takes.
Third quarter operating margin was 13.4% compared with 14% in the prior year. Loss of leverage on lower sales was a primary driver of the decline and that impact was compounded by higher depreciation related to our capacity expansion projects. Based on the nature of these investments, the third quarter depreciation impact was skewed toward gross margin in the Engine segment.
Overall, our teams are doing an excellent job mitigating the pressure created by lower sales. In terms of gross margin, plant managers are quickly adjusting labor to account for changes in demand and our procurement and supply chain teams continue to drive optimization initiatives that will have long-term benefits. These efforts, combined with favorable mix of sales and lower raw material costs, narrowed the third quarter gross margin decrease to 60 basis points.
Additionally, we had strong operating expense performance in the third quarter. On a dollar basis, operating expenses were at the lowest level in three years, which comes at the three years of incremental investments related to our Advanced and Accelerate portfolio and R&D capabilities. I want to add that we are not pausing investments in these initiatives, which are critical to our long-term growth plans.
As a rate of sales, third quarter operating expenses were up only slightly from the prior year. We had favorability from incentive compensation, which was down nearly $6 million and discretionary expenses were significantly reduced in relation to COVID-19. Despite the near-term pressures from the pandemic, we are pushing forward on our margin initiatives. New capacity that brings a lower cost to manufacturers coming online, we are steadily adjusting the supply chain, our procurement teams are driving cost reductions and our commercial teams continue to manage pricing.
The list is the same as what we have been sharing for more than a year. These are our top priorities, and regardless of the macro backdrop, we feel confident in our ability to continue making progress. We also feel confident in our financial position. At the end of the third quarter, our leverage ratio was 1.0 times net debt to EBITDA, which is where we were at the end of the second quarter and right in line with our long-term target.
Working capital was down from the prior year, driven by reductions to receivables and inventories and our cash conversion in the quarter was 98%. We continue to work with our suppliers and customers to manage credit and supply chain risk and we are also working with our valued banking partners to further bolster our liquidity position.
Out of an abundance of caution, we drew an additional $100 million from our revolving credit facility during third quarter. Then, later in May, we entered into an additional 364-day credit agreement that gives us access to another $100 million. At the same time, our pace of capital expenditures has decelerated. Third quarter capex declined by more than 40% and the spend trajectory is consistent with what we communicated previously.
Importantly, the projects were already in various stages of completion as COVID-19 spread. So we could finish these projects without putting our financial position at risk. Although the demand environment today is materially different than it was a year ago, we still feel confident that these projects will improve our cost structure, strengthen our customer service at local level and position us to grow in strategically important markets and geographies.
Let me share a few examples of what we're working on. We are setting up our first PowerCore line in China to support new program wins with local manufacturers. We doubled the production cap capacity for Process Filtration, position us for larger presence in the food and beverage industry, and new capacity in the Americas and Europe allows us to optimize the point of manufacturer for Engine-related projects. We still have a little work to do, but our teams are working hard to get them online soon.
Returning cash to shareholders is another important part of our capital deployment priorities. We are committed to the quarterly dividend, which has been paid every year for more than 60 years and increased annually for 24 years in a row. As I said to many of you, that's an awesome track record and I don't want to be the person that messes it up. Of course, we regularly review our dividend policy, and based on forward-looking scenarios, we feel comfortable with our ability to continue this impressive run.
Share repurchase has always been the more variable component of our capital deployment. We have been regularly repurchasing our shares for decades and we know that's a valuable activity to many of our shareholders. We take a thoughtful and measured approach in the execution of our share repurchase plans. Our minimum objective in any given year is to offset the dilution related to stock-based compensation, which is about 1% of shares.
The level of repurchase beyond that amount is governed by our balance sheet and other opportunities to deploy capital. We repurchased 1.6% of outstanding shares so far this year. Based on the uncertainty created by the pandemic, we do not expect additional share repurchase in fourth quarter. As the situation of the pandemic evolves, we will continue to prioritize a strong financial position and remain focused on executing our strategic priorities. That has been our approach for a very long time, and we believe it will serve us well for a long time to come.
Again, I would like to sincerely thank my colleagues around the world for their strong performance and I wish all of you health and safety during these times.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. Donaldson Company turns 105 this year. We have experience with every type of economic environment and we have always emerged to become an even stronger company. Our playbook is simple and consistent. We leverage our deep technical expertise to build a portfolio of filtration capabilities that we deploy into a diverse set of markets. We are a returns-focused company. We think long term, while maintaining a clear focus on those things we control in the near term. The pandemic has no impact on this playbook or our strategic priorities, which always starts with technology.
Along those lines, I'm very excited to share that our new Material Research Center is nearing completion. This R&D facility is a $15 million investment in building our material science capabilities. We leveraged some of this know-how in our Process Filtration business today, but the new facility is going to give us significantly stronger platform. We plan to further penetrate the food and beverage market followed by future expansion in specialty chemicals, electronics, and eventually life sciences. These markets are less cyclical, highly technical, and therefore highly profitable, making them an attractive complement to our strong Engine business.
Technology remains a core part of our Engine strategy as well. We want to win new business with products that drive aftermarket retention. While the pandemic has created uncertainty, we are still working with large OE customers on new programs and their demand for proprietary products is going up as they look to grow their parts business. Through our technology, Donaldson becomes a core part of the customers' growth strategy, giving us a wide competitive mode. The value of these products to our company has been demonstrated year after year, so we continue to make investments.
We recently introduced the new generation PowerCore filter called PowerCore Edge. It has the smallest footprint of any generation yet and our world-class media makes it an excellent solution for Off-Road applications that face heavy dust environments. PowerCore Edge will be another powerful tool for driving long-term share gains in our core markets. Additionally, we are building our first PowerCore line in China.
As large Chinese manufacturers move up the technology curve, a couple of things happened that create opportunity for us. First, a higher performing piece of equipment requires more advanced filtration. With our strong global brand, decade-long presence in the country, and significant experience supporting world-class OEMs, we are a natural partner for the Chinese manufacturers. Second, when end users buy a more expensive piece of equipment, they are more likely to maintain it properly. That makes PowerCore particularly interesting. As the replacement cycle is created in China, retaining the parts business is now valuable to those manufacturers.
Advancing our R&D capabilities and growing our portfolio of innovative products are what we would consider standard work at Donaldson. As I mentioned, we think long term and we are committed to creating value for all our stakeholders. I am confident we can deliver on that commitment because we have dedicated, talented and incredibly smart teams in every part of our company. Once again, I want to thank our employees for all they do. I'm proud to be on the team with them.
Now I'll turn the call back to Julianne to open the line for questions. Julianne?
Questions and Answers:
Operator
Thank you. [Operator Instructions]. Your first question comes from Nathan Jones from Stifel. Your line is open.
Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst
Good morning, everyone.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Nathan.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Hi Nathan.
Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst
I guess I'll start with the short-term questions, your guys third quarter here stand a pretty wide range of business conditions covering February, March and April. You said you expect May to be down 24%, could you compare that to what April was down? I think out in the market at the moment we're hearing customers are going back to work, but not really doing that much in terms of buying in May, more kind of figuring out what they're going to make, what they need in order to do that and with some expectation that maybe June gets a little bit better. So can you comment on whether or not you think April and May are kind of the bottom of this cycle for you?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure, Nathan. This is Tod. When we look at April, we had some project-based businesses that had some pull forwards in the very end of the month. And so we had a nice pickup frankly better than we had expected, but they were slated to go in our May time-frame. And so when we look at April and May, actually they were about the same when we combine the two together is the way we would forecast that. So we did not see a pickup or really further deterioration in May.
Now whether that's bottom, tough to call, we really don't know that. We did see a number of OEs come back to work in the month of May. But we also believe that this will be fits and starts ahead of us just because of the fact that OEs will be trying to find what their overall first-fit production rates are and their demand pull-through will be. So we look -- again, we look at April and May to be roughly about equal, and we're a bit more cautious about June and July, based upon the first-fit based businesses that we see.
Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst
Okay, thanks for that. You guys have finished a lot of these capacity additions, those were supposed to be accretive to your gross margin level. So I'm sure that probably helps with the decrementals as we go through this. Can you comment on what kind of decrementals you're expecting to post here in the fiscal fourth quarter?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Hey Nathan, this is Scott. Good morning. So yeah, we are proud of the accomplishments that we've had with all of our expansion projects and those help us to normalize the supply chain as we've talked about, reduce our costs, to improve our trade situation. And so as you stated, we would agree that that helped our margin in the fourth quarter to be less down -- sorry, in the third quarter.
In the fourth quarter, we would expect that help to continue. The big question is, what will the volume be that will drive the absorption and that's kind of a tough call right now, but we expect to continue the tailwind from the initiatives that we've -- that we've undertaken.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Nathan, this is Tod. Maybe just a little bit more color. So the discretionary expenses are being fantastically controlled by decision makers all across our company everywhere in the world. And some of those things such as travel and entertainment were down 80% on normal run rates. We're not going to be able to withhold that over the months ahead, eventually we have to lighten that back up and let people really press back into the marketplaces. And so there is some puts and takes there such as the comp activities that Scott talked about also that give us a little bit more favorable wind in the third quarter than we would expect looking forward.
Little bit tough to predict the overall decremental margins. Clearly, we're running better than we would have expected on the models as we went into February, and the commitment that we have to all of you is that we will continue to be very diligent and controlling what we can in our operational expenses.
Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst
Thanks, Tod. Just one quick one on the potential OEM aftermarket channel inventory stocking, it might be a bit of a hard question to answer, but do you have any information on maybe what that additive revenue or how many points of growth that additive revenue that we might have to pay back here at some point? And I would think that maybe that inventory destocking doesn't come for a little while, if those OEMs are still worried about their own supply chain, they might run that inventory a little higher for a little longer.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, I think that's a fair comment. The way that we would see it is we're not sure when it will come. Clearly, the OEs are holding on the inventory, we already saw some destocking on the independent channel. Clearly, OEs are holding on likely a little bit longer until they find what their pull-through rates will be, really difficult for us to predict at this point in time.
Brad Pogalz -- Director of Investor Relations
Nathan, this is Brad. And maybe to put a fine point on some of the details that Tod mentioned in his remarks, the Independent channel of our Aftermarket business, sales through that channel typically are in the neighborhood of 60% of Aftermarket, and in the last quarter was about 55% as that channel slowed more substantially than the OE channel. Now we never know precisely whether or not an order is a restock or a destock, so we can't really talk to that specifically.
But we do look at the trends between independents and OEs to see if there's any sort of alignment or lack of alignment. And clearly, this last quarter, there was a lot of lack of alignment, about a 10-point spread year-over-year between the two. So that gives you a little bit of a sense of magnitude of what we saw on the OE channel. But to the point Tod made, I mean it's really tough to see where that would come back to.
Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst
That's helpful. Thank you very much. I'll pass it on.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you.
Operator
Your next question comes from Brian Drab from William Blair. Your line is open.
Brian Drab -- William Blair -- Analyst
Hi, good morning. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Brian.
Brian Drab -- William Blair -- Analyst
So if I -- again I'm -- as Nathan did, I'm going to think about some near-term questions and sorting through the impacts of the pandemic, but if I use the assumption that April and May were roughly similarly tough, is it fair to assume that at this point based on what you saw as you exited May, what you're hearing from the customers that June and July probably are tougher than the environment that you had in February and March and thus the fourth quarter is down sequentially on the top line for sure?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, really hard to say Brian. Let's just give a little bit of color, really hard to say on that Brian, just simply because clearly we see order incoming patterns and we try to match that up with all the plant shutdown notices. We do have some customers that came back in May, then shut down, then planned shutdowns in June and so that's the fits and starts that I referred to earlier. And so therefore because of that situation, and then on again, off again, it's really difficult to predict where we are on this first-fit cycle of things. There is no consistent line to be drawn at this moment.
Brian Drab -- William Blair -- Analyst
So there's no way, Tod, that you can say, well I saw things better at the end of May versus the beginning?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
No, I -- we actually did that analysis. I was very curious about it, and after partialling through every morsel of it, I gave up on it because -- yeah, I couldn't really say that with strong conviction that I can give you a line on that.
Brian Drab -- William Blair -- Analyst
Okay and then just asking that -- I mean, it's a question on decrementals, but just asked in another way, but let's just say, given all the levers that you pulled, if revenue, just as a scenario, if revenue were to be similar in the fourth quarter compared with the third, would gross margin be about the same or up or down from what you reported in the third?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, I'll start. So we had a good mix in this last quarter. So I think if you made some assumptions, it's obviously you have to do in this kind of situation. But if our mix held, I think we can maintain those margins. We have a lot of different businesses in there, there's a lot of puts and takes going on, so it's hard to say. But I think if we presumed a relatively consistent mix and reasonable sales, I think our margins could hold.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. And I would agree with Scott. I think obviously our biggest variable, if you will, is how much of the first-fit business will come back within the fourth quarter, which is headwinds overall to margin base mix, and then our Special Applications business, also, if should that experience some headwinds as we would expect, that will also be some headwinds to the overall gross margin performance in the corporation. And so those are two of the significant mix components that we continue to keep a strong eye on in order to best understand where we are.
Brian Drab -- William Blair -- Analyst
Okay, and then just the same question on operating margin, given the flat revenue scenario.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, the biggest impact would be we had some incentive comp adjustments this quarter. So that was a $6 million expense reduction and naturally catch-up from the first three quarters. So you have to annualize that, it wouldn't be as large in the fourth quarter. We would continue to manage our expenses aggressively and work to keep our discretionary expenses at low levels in light of the sales situation. So I would expect that to continue.
We are at our lowest level in three years in terms of opex. So we're pretty proud of that performance. I think that shows that we're managing expenses tightly, especially in light of the fact that we continue to invest in the initiatives that we've talked about in the past. So I think save the incentive comp adjustments, I would expect our operating expenses to continue to be managed tightly in the fourth quarter.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. And I just want to add a little bit of color there, Brian. I think it's important to understand that we are controlling what we can control. But throughout all of this, we're taking a long-term view, and we are not going to jeopardize the strategic health of this corporation. And that is the way we're managing.
Brian Drab -- William Blair -- Analyst
Got it. Understood, Tod. Thanks. And Scott, just to be clear on the -- you're talking about bonus accrual as -- is that -- was a tailwind in this quarter to margins, that isn't a big a tailwind in the fourth quarter. Did I understand that correctly?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, that is correct, both bonus and long-term incentives.
Brian Drab -- William Blair -- Analyst
Okay, and then just lastly, these Aerospace and Defense orders that are -- this has been a good market for you. Does that continue or some of these larger projects maybe that you're doing there fall off? Thanks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So headwinds on -- clearly headwinds on fixed-wing based aircraft being it made up on ground-based defense vehicles and helicopters. We would expect that performance to continue about where it is at the moment. Our teams have done an excellent job around the world really filling in that gap and that headwind that fixed-wing aircraft is presenting.
Brian Drab -- William Blair -- Analyst
All right, thanks very much.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Thanks.
Operator
Your next question comes from Laurence Alexander from Jefferies. Your line is open.
Laurence Alexander -- Jefferies -- Analyst
Good morning. So just a couple of things. First, on the bonus accruals. Can you help us think through what normalization would look like? Is that a headwind in 2021 or 2022? And secondly, can you help us with -- can you peel back a little bit how you're thinking about planning assumptions for 2021 but also the longer-term growth like what's really changed from the playbook that you had after the industrial recession or after the financial crisis. I mean, is there anything in the playbook that's changing in this environment?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, maybe I'll start with question number one and will let Tod take question number two. In terms of the incentive comp, so we had a $6 million benefit from adjustments to the first three quarters and that results when we expect our performance to be less than planned, we don't plan to pay full incentives and therefore we have a reduction. We haven't had our plan for next year, but I would expect our plan will be established for next year and that plan would include a bonus that would likely be higher than this year's bonus and so therefore you would get a headwind from those expenses, assuming everything else equal and through the third -- the third quarter benefit was $6 million, we'll get a fourth quarter benefit as well. So that will be a headwind for next year.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
And Laurence, this is Tod. So the long-term playbook, nothing has changed for us. In fact, we would argue the investments we made into our corporation over the past two years with capacity expansion to allow for supply chain normalization -- internal supply chain to feed our customers really now works to our advantage, and we are deep into that renormalization, if you will, and that realignment of that internal supply chain to help really drive gross margin improvement.
And so we are really happy where we stand to the execution. We're very proud of the execution of the projects that we have in flight. So we sit in a good position. Longer term, where we're investing and looking at further diversification of the corporation hasn't changed either, we haven't slowed any of that down, and I want to emphasize that we continue to play a long-term game.
Laurence Alexander -- Jefferies -- Analyst
And then could you also give an update on your thinking about the Asian market, specifically I think the Chinese NPC had a lot of themes around sort of tighter environmental controls in the work environment and so forth. How is that tightening playing into your thinking about investments in Asia relative to other regions?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. In China, we have actually had some good momentum, China with their Blue Sky initiatives relative to our dust collection business over there is really helping draw project-based business forward. And so we have growth in China, very nice growth on the industrial base side of things that help support the Blue Sky initiative. We continue to invest and bring technology over into China to answer those needs of the Blue Sky initiative.
And then on the Engine side of things, as they continue to increase the technology, we have been winning there with PowerCore, we've been winning so much so that we're putting a PowerCore line in China because that aligns best with our region to support region growth. So we continue to press forward with our strategy. The regulation changes that are happening in China are working to our favor and we're doing a good job at share gain there.
Laurence Alexander -- Jefferies -- Analyst
Thank you.
Operator
We have no further questions. I will turn the call over to Tod Carpenter for closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Julianne. As we end today's call, I want to make one more comment. The tragic event that recently took place in our Twin City's community and the violence that followed are greatly disturbing. I offer my deepest condolences to the family and friends of George Floyd and with healing to those affected by the subsequent events that unfolded following the tragedy. I want to stress that Donaldson is committed to sustainable change and we stand united with our communities and nation to stop the senseless cycle of discrimination.
That concludes today's call. I want to thank everyone listening for your time and interest in Donaldson Company, and I hope that you and your family and friends are safe. Goodbye.
Operator
[Operator Closing Remarks]
Duration: 44 minutes
Call participants:
Brad Pogalz -- Director of Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst
Brian Drab -- William Blair -- Analyst
Laurence Alexander -- Jefferies -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q3 2020 Earnings Call Jun 2, 2020, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst Brian Drab -- William Blair -- Analyst Laurence Alexander -- Jefferies -- Analyst More DCI analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. We have significantly limited business travel, implemented a thorough cleaning regimen in factories and office spaces, instituted remote work policies for all that are able and introduced COVID-related paid leave while promoting existing employee assistance programs. | Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst Brian Drab -- William Blair -- Analyst Laurence Alexander -- Jefferies -- Analyst More DCI analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q3 2020 Earnings Call Jun 2, 2020, 10:00 a.m. Businesses like Engine Aftermarket and Process Filtration offer a bit of relative stability, while new equipment production for engine-related products and capital investment for dust collection systems were still under pressure. | Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst Brian Drab -- William Blair -- Analyst Laurence Alexander -- Jefferies -- Analyst More DCI analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q3 2020 Earnings Call Jun 2, 2020, 10:00 a.m. Thank you all for joining Donaldson's third quarter 2020earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; and Scott Robinson, Chief Financial Officer. | Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company, Inc. -- Analyst Brian Drab -- William Blair -- Analyst Laurence Alexander -- Jefferies -- Analyst More DCI analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q3 2020 Earnings Call Jun 2, 2020, 10:00 a.m. Engine Aftermarket performed much better than our first-fit businesses in the quarter and results were mixed by channel and region. | 7c07c375-9688-4b75-98cb-b96895040440 |
709782.0 | 2020-06-02 00:00:00 UTC | Donaldson Expects May Sales To Be Down 20% - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-expects-may-sales-to-be-down-20-quick-facts-2020-06-02 | nan | nan | (RTTNews) - While reporting financial results for the third quarter on Tuesday, Donaldson Co. Inc. (DCI) said sales for the month of May 2020 is expected to down 20 percent, reflecting relative outperformance in replacement parts versus new equipment, and, on a regional basis, Asia Pacific sales are expected to be the strongest while sales in the Americas are expected to be the weakest.
Donaldson had withdrawn its financial targets for fiscal years 2020 and 2021 on April 29 as magnitude and duration of the impact from the COVID-19 pandemic on Donaldson's business cannot be reasonably estimated and will likely be material. The Company's financial performance still remains uncertain.
Donaldson had then said it remains committed to its dividend, which has been paid every quarter for 64 years and increased annually for more than 20 consecutive years.
On May 29, the company's Board of Directors declared a regular cash dividend of 21.0 cents per share, payable June 30, 2020, to shareholders of record on June 15, 2020.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting financial results for the third quarter on Tuesday, Donaldson Co. Inc. (DCI) said sales for the month of May 2020 is expected to down 20 percent, reflecting relative outperformance in replacement parts versus new equipment, and, on a regional basis, Asia Pacific sales are expected to be the strongest while sales in the Americas are expected to be the weakest. Donaldson had withdrawn its financial targets for fiscal years 2020 and 2021 on April 29 as magnitude and duration of the impact from the COVID-19 pandemic on Donaldson's business cannot be reasonably estimated and will likely be material. On May 29, the company's Board of Directors declared a regular cash dividend of 21.0 cents per share, payable June 30, 2020, to shareholders of record on June 15, 2020. | (RTTNews) - While reporting financial results for the third quarter on Tuesday, Donaldson Co. Inc. (DCI) said sales for the month of May 2020 is expected to down 20 percent, reflecting relative outperformance in replacement parts versus new equipment, and, on a regional basis, Asia Pacific sales are expected to be the strongest while sales in the Americas are expected to be the weakest. The Company's financial performance still remains uncertain. Donaldson had then said it remains committed to its dividend, which has been paid every quarter for 64 years and increased annually for more than 20 consecutive years. | (RTTNews) - While reporting financial results for the third quarter on Tuesday, Donaldson Co. Inc. (DCI) said sales for the month of May 2020 is expected to down 20 percent, reflecting relative outperformance in replacement parts versus new equipment, and, on a regional basis, Asia Pacific sales are expected to be the strongest while sales in the Americas are expected to be the weakest. Donaldson had withdrawn its financial targets for fiscal years 2020 and 2021 on April 29 as magnitude and duration of the impact from the COVID-19 pandemic on Donaldson's business cannot be reasonably estimated and will likely be material. Donaldson had then said it remains committed to its dividend, which has been paid every quarter for 64 years and increased annually for more than 20 consecutive years. | (RTTNews) - While reporting financial results for the third quarter on Tuesday, Donaldson Co. Inc. (DCI) said sales for the month of May 2020 is expected to down 20 percent, reflecting relative outperformance in replacement parts versus new equipment, and, on a regional basis, Asia Pacific sales are expected to be the strongest while sales in the Americas are expected to be the weakest. Donaldson had withdrawn its financial targets for fiscal years 2020 and 2021 on April 29 as magnitude and duration of the impact from the COVID-19 pandemic on Donaldson's business cannot be reasonably estimated and will likely be material. The Company's financial performance still remains uncertain. | 7e18bf37-02ba-42fe-a509-9bda85643b28 |
709783.0 | 2020-06-01 00:00:00 UTC | Daily Dividend Report: ARE,OXY,DCI,THG,IBKC | DCI | https://www.nasdaq.com/articles/daily-dividend-report%3A-areoxydcithgibkc-2020-06-01 | nan | nan | Alexandria Real Estate Equities today announced that its Board of Directors declared a quarterly cash dividend of $1.06 per common share for the second quarter of 2020. The dividend is payable on July 15, 2020, to shareholders of record on June 30, 2020. The common stock dividend for the 12 months ended June 30, 2020, of $4.12 per common share represents an increase of 25 cents, or 6 percent, over the 12 months ended June 30, 2019.
Occidental Petroleum said today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2020, to stockholders of record as of June 15, 2020. This is an update to the company's previously announced dividend policy change from March 10, 2020, which reduced the quarterly dividend to $0.11 per share.
Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable June 30, 2020, to shareholders of record on June 15, 2020. The Company has paid a cash dividend every quarter for 64 years, and Donaldson was added to the S&P High-Yield Dividend Aristocrats Index in January 2016 after 20 consecutive years of annual dividend increases.
The Hanover Insurance Group announced today its board of directors has declared a quarterly dividend of $0.65 per share on the issued and outstanding common stock of the company, payable June 26, 2020, to shareholders of record at the close of business on June 12, 2020.
The Board of Directors of IBERIABANK announced the declaration of a quarterly cash dividend of $0.47 per common share. The dividend is payable on June 26, 2020, to shareholders of record as of June 12, 2020. This quarterly dividend level equates to an annualized dividend rate of $1.88 per common share. Based on the closing common stock price on May 29, 2020 of $42.41 per common share, the indicated dividend yield on the Company's common stock would be 4.4%.
VIDEO: Daily Dividend Report: ARE,OXY,DCI,THG,IBKC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: ARE,OXY,DCI,THG,IBKC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Occidental Petroleum said today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2020, to stockholders of record as of June 15, 2020. The Hanover Insurance Group announced today its board of directors has declared a quarterly dividend of $0.65 per share on the issued and outstanding common stock of the company, payable June 26, 2020, to shareholders of record at the close of business on June 12, 2020. | VIDEO: Daily Dividend Report: ARE,OXY,DCI,THG,IBKC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alexandria Real Estate Equities today announced that its Board of Directors declared a quarterly cash dividend of $1.06 per common share for the second quarter of 2020. Occidental Petroleum said today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2020, to stockholders of record as of June 15, 2020. | VIDEO: Daily Dividend Report: ARE,OXY,DCI,THG,IBKC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Occidental Petroleum said today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2020, to stockholders of record as of June 15, 2020. Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable June 30, 2020, to shareholders of record on June 15, 2020. | VIDEO: Daily Dividend Report: ARE,OXY,DCI,THG,IBKC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Occidental Petroleum said today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share on common stock payable on July 15, 2020, to stockholders of record as of June 15, 2020. Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable June 30, 2020, to shareholders of record on June 15, 2020. | 73bb1f62-d90f-4232-920b-4e260a3628c7 |
709784.0 | 2020-05-12 00:00:00 UTC | Donaldson Reaches Analyst Target Price | DCI | https://www.nasdaq.com/articles/donaldson-reaches-analyst-target-price-2020-05-12 | nan | nan | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $44.67, changing hands for $45.25/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets contributing to that average for Donaldson Co. Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $42.00. And then on the other side of the spectrum one analyst has a target as high as $48.00. The standard deviation is $3.055.
But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $44.67/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Donaldson Co. Inc.:
RECENT DCI ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 1 1 2 2
Buy ratings: 0 0 0 0
Hold ratings: 5 5 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 2.67 2.67 2.33 2.33
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DCI — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $44.67, changing hands for $45.25/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $44.67/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $44.67, changing hands for $45.25/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $44.67/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with DCI crossing above that average target price of $44.67/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $44.67, changing hands for $45.25/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $44.67, changing hands for $45.25/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $44.67/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | f676e6b9-6ff1-40ac-bec1-7e30d91fc5b2 |
709785.0 | 2020-04-10 00:00:00 UTC | DCI Crosses Above Average Analyst Target | DCI | https://www.nasdaq.com/articles/dci-crosses-above-average-analyst-target-2020-04-10 | nan | nan | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $42.00, changing hands for $42.67/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets contributing to that average for Donaldson Co. Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $40.00. And then on the other side of the spectrum one analyst has a target as high as $44.00. The standard deviation is $2.0.
But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $42.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $42.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Donaldson Co. Inc.:
RECENT DCI ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 1 2 2 2
Buy ratings: 0 0 0 0
Hold ratings: 5 4 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 2.67 2.33 2.33 2.33
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DCI — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $42.00, changing hands for $42.67/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $42.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $42.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $42.00, changing hands for $42.67/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $42.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $42.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with DCI crossing above that average target price of $42.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $42.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $42.00, changing hands for $42.67/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $42.00, changing hands for $42.67/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $42.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $42.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | 102529d4-0463-4729-a07f-cd969f30e9b9 |
709786.0 | 2020-03-19 00:00:00 UTC | We Did The Math IWF Can Go To $202 | DCI | https://www.nasdaq.com/articles/we-did-the-math-iwf-can-go-to-%24202-2020-03-19 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Russell 1000 Growth ETF (Symbol: IWF), we found that the implied analyst target price for the ETF based upon its underlying holdings is $201.54 per unit.
With IWF trading at a recent price near $139.28 per unit, that means that analysts see 44.70% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IWF's underlying holdings with notable upside to their analyst target prices are 2U Inc (Symbol: TWOU), Ionis Pharmaceuticals Inc (Symbol: IONS), and Donaldson Co. Inc. (Symbol: DCI). Although TWOU has traded at a recent price of $12.51/share, the average analyst target is 101.44% higher at $25.20/share. Similarly, IONS has 55.32% upside from the recent share price of $43.46 if the average analyst target price of $67.50/share is reached, and analysts on average are expecting DCI to reach a target price of $52.33/share, which is 46.55% above the recent price of $35.71. Below is a twelve month price history chart comparing the stock performance of TWOU, IONS, and DCI:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares Russell 1000 Growth ETF IWF $139.28 $201.54 44.70%
2U Inc TWOU $12.51 $25.20 101.44%
Ionis Pharmaceuticals Inc IONS $43.46 $67.50 55.32%
Donaldson Co. Inc. DCI $35.71 $52.33 46.55%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | iShares Russell 1000 Growth ETF IWF $139.28 $201.54 44.70% 2U Inc TWOU $12.51 $25.20 101.44% Ionis Pharmaceuticals Inc IONS $43.46 $67.50 55.32% Donaldson Co. Inc. DCI $35.71 $52.33 46.55% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IWF's underlying holdings with notable upside to their analyst target prices are 2U Inc (Symbol: TWOU), Ionis Pharmaceuticals Inc (Symbol: IONS), and Donaldson Co. Inc. (Symbol: DCI). Similarly, IONS has 55.32% upside from the recent share price of $43.46 if the average analyst target price of $67.50/share is reached, and analysts on average are expecting DCI to reach a target price of $52.33/share, which is 46.55% above the recent price of $35.71. | Three of IWF's underlying holdings with notable upside to their analyst target prices are 2U Inc (Symbol: TWOU), Ionis Pharmaceuticals Inc (Symbol: IONS), and Donaldson Co. Inc. (Symbol: DCI). Similarly, IONS has 55.32% upside from the recent share price of $43.46 if the average analyst target price of $67.50/share is reached, and analysts on average are expecting DCI to reach a target price of $52.33/share, which is 46.55% above the recent price of $35.71. iShares Russell 1000 Growth ETF IWF $139.28 $201.54 44.70% 2U Inc TWOU $12.51 $25.20 101.44% Ionis Pharmaceuticals Inc IONS $43.46 $67.50 55.32% Donaldson Co. Inc. DCI $35.71 $52.33 46.55% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, IONS has 55.32% upside from the recent share price of $43.46 if the average analyst target price of $67.50/share is reached, and analysts on average are expecting DCI to reach a target price of $52.33/share, which is 46.55% above the recent price of $35.71. Three of IWF's underlying holdings with notable upside to their analyst target prices are 2U Inc (Symbol: TWOU), Ionis Pharmaceuticals Inc (Symbol: IONS), and Donaldson Co. Inc. (Symbol: DCI). Below is a twelve month price history chart comparing the stock performance of TWOU, IONS, and DCI: Below is a summary table of the current analyst target prices discussed above: | iShares Russell 1000 Growth ETF IWF $139.28 $201.54 44.70% 2U Inc TWOU $12.51 $25.20 101.44% Ionis Pharmaceuticals Inc IONS $43.46 $67.50 55.32% Donaldson Co. Inc. DCI $35.71 $52.33 46.55% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IWF's underlying holdings with notable upside to their analyst target prices are 2U Inc (Symbol: TWOU), Ionis Pharmaceuticals Inc (Symbol: IONS), and Donaldson Co. Inc. (Symbol: DCI). Similarly, IONS has 55.32% upside from the recent share price of $43.46 if the average analyst target price of $67.50/share is reached, and analysts on average are expecting DCI to reach a target price of $52.33/share, which is 46.55% above the recent price of $35.71. | 1c6c0bdb-f376-42f1-9bed-525b2d6a9ff4 |
709787.0 | 2020-03-18 00:00:00 UTC | Donaldson is Oversold | DCI | https://www.nasdaq.com/articles/donaldson-is-oversold-2020-03-18 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DCI entered into oversold territory, changing hands as low as $35 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Donaldson Co. Inc., the RSI reading has hit 28.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 26.6. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DCI's recent annualized dividend of 0.84/share (currently paid in quarterly installments) works out to an annual yield of 2.12% based upon the recent $39.58 share price.
A bullish investor could look at DCI's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at DCI's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DCI entered into oversold territory, changing hands as low as $35 per share. | Indeed, DCI's recent annualized dividend of 0.84/share (currently paid in quarterly installments) works out to an annual yield of 2.12% based upon the recent $39.58 share price. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DCI entered into oversold territory, changing hands as low as $35 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DCI entered into oversold territory, changing hands as low as $35 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DCI entered into oversold territory, changing hands as low as $35 per share. | 3f8fa266-1a40-4bf7-bce8-7674c04d0269 |
709788.0 | 2020-03-05 00:00:00 UTC | Donaldson Co (DCI) Q2 2020 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q2-2020-earnings-call-transcript-2020-03-05 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q2 2020 Earnings Call
Mar 5, 2020, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by and welcome to the Donaldson's Fiscal 2020 Second Quarter Earnings Conference Call. [Operator Instruction] I would now like to hand the conference over to your speaker today, Brad Pogalz, Director of Investor Relations. Thank you. Please go ahead.
Brad Pogalz -- Director of Investor Relations
Thanks Megan. Good morning. Thank you for joining Donaldson's second quarter 2020earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; and Scott Robinson, our Chief Financial Officer. This morning, Tod and Scott will provide a summary of our second quarter performance and an overview of what we are planning for the balance of the year.
During today's call, we may reference non-GAAP metrics. Please note that there is a reconciliation of GAAP to non-GAAP metrics within the schedules attached to this morning's press release. I want to remind everyone that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks Brad. Good morning, everyone. We delivered strong profit performance in the second quarter. Our initiatives to increase gross margin are building momentum, and we are controlling expenses in a softer-than-expected demand environment. We are managing those things under our control. And I want to thank our employees for their discipline and focus.
Strengthening our portfolio of filtration businesses is under our control. To that end, I want to comment on last week's announcement. As we discussed on February 24, Nelson Global Products made a binding offer to purchase our Exhaust and Emissions business. We got into Exhaust and Emissions in the 1920s when we began selling mufflers for tractors. Exhaust and Emissions is our second oldest business and it is our only business that could be characterized as non-filtration. We have great employees and customers, but Exhaust and Emissions does not leverage our core technologies or material science expertise, nor is there a replacement parts model that aligns with our razor to sell razor blade strategy. Through that lens, Donaldson is not the best owner of Exhaust and Emissions, so working with Nelson makes sense. Pending consultation with our employee works councils in Europe, along with other customary and regulatory approvals, we would expect to close the transaction in the coming months.
Turning to second quarter results, total sales are down 6%, with benefits from pricing offsetting a headwind from currency translation. At a high level, expected declines in our first-fit and new equipment businesses were compounded by a broad-based slowdown. Customers were cautious during our second quarter, and then conditions worsened in February with the coronavirus outbreak. I'll touch more on that in a few minutes.
Turning back to second quarter, Engine segment sales were down 7%. About two-thirds of the decline came from our On-Road and Off-Road first-fit businesses. Second quarter On-Road sales were down 21%. Half of the decline came from the US, as Class 8 truck production predictably slowed. However, third-party data indicates that we continued to outperform the overall market. On-Road sales in China were also down last quarter. We had difficult comparisons from the prior year, and revenue remains choppy as we ramp up programs with local manufacturers, many of whom are new customers to Donaldson.
In Off-Road, second quarter sales were down nearly 15%. Consistent with our expectations, about a quarter of the decline was from Exhaust and Emissions, as we compare against last year's pre-buys. Soft market conditions also pressured Off-Road. Second quarter sales to many of our largest customers in construction, mining and agriculture were down from last year. Based on persistent uncertainty, we expect these trends will continue. Similarly, lower equipment utilization contributed to the 4% decline in aftermarket sales.
Both the independent and OEM channels were down in the mid-single digits with variability by region and market. For example, oil and gas is still a headwind in the US, while Eastern Europe is recovering after soft business in the prior year. Importantly, our innovative products with strong aftermarket retention continue to outperform their legacy counterparts. These products are about a quarter of total aftermarket, and second quarter sales were up in the mid-single digits, including PowerCore. The continued success with PowerCore validates our strategy: develop innovative products that solve complex problems and drive aftermarket retention. Second quarter sales in Aerospace and Defense were up almost 1%. Sales to helicopters were up from the prior year, and our replacement parts business continues to perform well.
Second quarter sales in the Industrial segment were down 3.5%, driven by Industrial Filtration Solutions and Gas Turbine Systems. The 5.9% decline for Industrial Filtration Solutions, or IFS, has several moving pieces. Sales related to dust collection, which make up about 60% of IFS, were down in the high-single digits. About a quarter of the decline is attributable to a tough comp from last year and the rest appears to be market-driven. Customers are focused on their immediate needs versus investments for future growth, resulting in lower sales of new equipment. Sales of dust collector replacement parts were also down in the quarter. Lower utilization is extending the replacement cycle, and customers are holding off on purchases. These near-term trends do not change our long-term view. So we will continue to invest for share gains with specific go-to-market strategies in all our major regions.
We see evidence of share gains with innovative products happening already. Second quarter sales of new Downflo equipment for dust collectors were up in the mid-teens and the razor blade replacement part sales were up more than 30%. We believe the strong value proposition and high aftermarket retention of Downflo products will continue to drive profitable share gains in dust collection.
Process Filtration is another example of gaining share and growing margin. Sales were up in the low-double digits last quarter. We are winning new accounts with large strategic customers, extending our relationship with existing accounts and expanding globally. We continue to believe Process Filtration will be a powerful sales and margin driver well into the future.
Sales in Gas Turbine Systems, or GTS, were down about 12% in second quarter. Demand for new turbine projects remains low, and delays in planned maintenance contributed to a decline in sales of replacement parts. We do, however, expect demand for replacement parts will recover as the maintenance happens.
I know I've done it before on these calls, but I feel compelled to once again recognize our GTS team. Year-to-date sales are down about $8 million, while profit dollars are up meaningfully from last year. The GTS team is doing an incredible job growing profit in a difficult business cycle, and they are making great progress on repositioning this business for long-term success.
Wrapping up Industrial, sales of Special Applications grew 11% last quarter. Our disk drive business was unexpectedly strong due to demand for near-line storage. We're not anticipating growth in our overall disk drive business will continue, but we will continue to pursue share gains in this highly technical market.
We are also gaining share with Venting Solutions, where sales were up in the low-double digits last quarter. We continue to expand our offering for the automotive market, including powertrain and battery vents. These technical products align well with the growing demand for electric passenger cars, creating an exciting growth opportunity for us. Overall, our model is working as we would expect. New equipment appears to be gaining share in a down market. Replacement parts are outperforming first-fit by a wide margin. And sales of innovative and proprietary products are growing.
Overall cautiousness was the prevailing theme during our second quarter, and that has been amplified by the coronavirus. Before turning the call to Scott, I want to share some thoughts on the outbreak. Our top priority is the health and safety of our employees. We have implemented several countermeasures to mitigate risks to them, including travel restrictions, work from home flexibility, extended facility closures in China, incremental cleaning schedules, and the availability of specific items like hand sanitizer and face masks where appropriate. I'm very happy that as of today, none of our employees have reported being infected with coronavirus. We will continue to promote health and safety in all Donaldson facilities around the world.
Specific to China, our operations in Wuxi are stabilizing after an extended closing period following the Chinese New Year. Since reopening on February 10, we have been ramping up production as our staff returned to work, and nearly all our suppliers are back online. Orders are down from our forecast, which is to be expected, but they have started to ramp back up as customers resume operations. As a reminder, China is 6% to 7% of total revenue, including about a quarter of our global disk drive production.
Outside of China, we have not yet experienced significant disruption, but the cautious stance is clearly visible. We are executing on contingency plans, while closely monitoring the situation in places like Italy, South Korea and Japan. Overall, I'm very proud of the level of global collaboration our teams have demonstrated in response to the outbreak. It is truly impressive. The hard part for us and all companies is assessing the near and medium term impact from coronavirus. We have factored some incremental uncertainty into our fiscal 20 forecast, which I'll let Scott cover more in his remarks. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Good morning, everyone. I want to echo Tod's sentiment. Our teams are doing an excellent job, navigating the challenges created by the coronavirus. As the outbreak in China was becoming more serious, we were beginning the second quarter financial close. That's a stressful time in any quarter, and our teams rallied together to support the process. I am really impressed by what they accomplished.
The coronavirus outbreak is one more item on a long list of things that are making our customers cautious. Based on the general slowdown across markets, we revised our full-year forecast. I'll talk more about that later. But first, let me provide a quick overview of our second quarter key financial metrics.
We converted a 6% sales decline into EPS growth of 9%. We feel good about our profit leverage, and non-operating items pushed EPS to a second quarter record of $0.50. Operating margin grew 70 basis points to 12.8%, including a 50 basis point headwind from incremental depreciation related to capacity expansion. That's our strongest second quarter operating margin since 2012. Profit margins were also strong in both segments with Engine and Industrial up 90 basis points and 160 basis points, respectively.
Consolidated gross margin grew substantially to 33.7% from 32% last year. Of the 170 basis point improvement, we estimate about 1 point came from our optimization initiatives. New capacity is coming online. We are steadily adjusting the supply chain. Our procurement teams are driving cost reductions. And our commercial teams continue to manage pricing. Solid progress on these initiatives was complemented by a favorable mix of sales and lower raw material costs. As we said coming into the year, increase in gross margin is our top operational priority, and we are pleased with the progress.
Operating expenses as a rate of sales increased to 21% from 19.9% last year, driven primarily by loss of leverage on lower sales in the quarter. We continue to spend wisely by managing discretionary expenses, while funneling dollars toward R&D and our Advance and Accelerate portfolio. Second quarter non-operating income was about $2 million better than last year and our forecast, driven by lower loss on foreign exchange. Our consolidated tax rate of 22.2% was also better than expected, reflecting benefits from stock option activity and a favorable mix of earnings.
We made dividend payments of $27 million in the second quarter and did not repurchase any shares. We take a long view of share repurchase and consider many things, including our leverage ratio, the business outlook and our liquidity needs, which means that the amount of repurchase in any quarter can vary. We are still committed to 2% this year and have purchased half of that amount in the first quarter.
Our balance sheet remains in good shape. At the end of the quarter, we had a 1 times net debt to EBITDA, and our working capital was down from the prior year, which is what we would expect in a slower sales environment, as we make progress converting receivables and optimizing our payables. Our balance sheet is a competitive advantage, especially as markets turn down. Based on where we are today, we feel confident that we can continue pursuing our long-term strategic priorities.
As we think about the second half of fiscal 20, we have one goal, think and act long term by controlling what we can. With that, I'll walk through our guidance, starting with the economic environment.
Regarding coronavirus, the situation has changed too rapidly to give a precise estimation of the near or long-term impact. February sales in China were soft, but the rest of the world is more consistent with trends in the second quarter. Given the overhang of uncertainty from a variety of factors, including coronavirus, we made a downward revision to our forecast and kept our guidance ranges wide.
We now expect full year sales to decline between 3% and 7%, including a headwind of 1% to 2% from currency that should be partially offset by pricing. About 80% of a change in our sales forecast relates to lower projections in the second half of fiscal '20. We now expect the back half to be down in the mid-single digits from last year. Within the back half, we anticipate the sequential increase from second to third quarter will be much smaller than our historic average over a long period.
In the Engine segment, full year sales are expected to decline between 5% and 9%. We did not change our Aerospace and Defense forecast, which is up in the mid-single digits. For On-Road an Off-Road, we now expect full year declines in the high-teens, as equipment production slows further. We also estimate a lower level of equipment utilization. So sales of aftermarket are now forecast down in the low-to-mid single-digits. Importantly, we continue to expect share gains as our innovative products outperform legacy technology.
Our Industrial segment sales are now projected between a 3% decline and a 1% increase. We continue to expect Special Applications will be down in the low-single digits, as increasing market level uncertainty unwind the strength we had in second quarter. GTS is now projected to be about flat with last year, driven by a lower rate of growth in sales of replacement parts. Sales and IFS are now projected down in the low-single digits, reflecting continued strength in Process Filtration that is offset by softer market conditions for dust collection. We still expect to perform better than the market, but it's likely that new equipment and replacement parts will remain under pressure from a cautious customer stance.
Based on lower sales in both segments, our full year operating margin is now forecast between 13.5% and 13.9%. We continue to expect a notable year-over-year increase in gross margin, reflecting benefits from the initiatives we outlined earlier. Additionally, we plan to keep tight control of operating expenses. And we expect our incentive compensation headwind will be less than $5 million, down from $10 million in our prior forecast. The implied decremental margin in our current versus prior guidance is in the low-20% range, which we view as strong, given the unexpected sales decline.
We also made a handful of other adjustments to our forecast. Full year interest expense is now projected to be about $18 million. Other income is projected between $7 million and $11 million, with the change driven primarily by the second quarter favorability. And our effective tax rate is forecast between 24.3% and 25.3%. We still expect capital expenditures of $110 million to $130 million, share repurchase of 2% and cash conversion of 80% to 95%. Altogether, we now expect full year GAAP EPS between $2.05 and $2.19. Please keep in mind that our forecast is not adjusted for the potential E&E transaction. Pending completion of the necessary steps and closing the transaction, we will provide a more comprehensive view of how the divestiture impacts our financial metrics and outlook. Until we close, we're unable to provide detailed beyond what's been shared.
As we look to next year, current market conditions and the impact from the coronavirus make our fiscal '21 projections more uncertain. Based on where we are today, we expect our sales and operating margin in fiscal '21 will be below the ranges provided at our Investor Day last April. While the forecast is under review, the themes for Investor Day remain intact. We plan to [Phonetic] direct investment to our Advance and Accelerate portfolio, which will drive share gains and increase our margin profile. We will expand into new markets by developing new technologies and leveraging our existing portfolio. And we have a disciplined approach to capital deployment. We focus on generating strong returns and returning cash to shareholders. With a stable base of recurring revenue, which makes up more than 60% of total sales, we believe we are well positioned to execute on the initiatives, while effectively managing through a more uncertain economic cycle.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks Scott. While markets are uncertain, we remain focused on supporting our customers and driving our strategic priorities through innovation. While we feel confident in our efforts, external acknowledgment is also positive.
Our Filter Minder team recently enjoyed some recognition from a well-regarded industry publication, which included our wireless monitoring system on their list of top 20 products for 2020. Products were judged on innovation, the ability to address important industry issues and the potential to improve a fleet's bottom line. We are pleased to be on this year's list, and we are excited about the commercial launch of our monitoring solution. Customers can easily retrofit our device onto existing system systems, giving them better visibility into their filtration performance and the ability to optimize service intervals.
We are also expanding the launch of our Industrial segment's connected solution, iQ. We began selling iQ in the US late last year, and we plan to expand to other parts of the world in the coming months. Like our Filter Minder offering, iQ can be set up easily and provides real-time information to users about the performance of their dust collection equipment.
We also continue to innovate with our existing portfolio of products. A long-running example is PowerCore. We launched the product 20 years ago and made our 40 millionth filter last year. We have continued to evolve PowerCore, making it better for our customers and more efficient for us to produce. Based on a study we conducted last year, which compared PowerCore against its small number of competitive offerings, our performance advantage continues to hold up. With consistent use of PowerCore, we estimate that fleets with 500 trucks can save as much as $100,000 per year in fuel costs. By helping the engine work more efficiently, PowerCore can reduce fuel consumption, creating a strong economic and environmental value proposition.
Our IFS products also provide benefits beyond just the economics. Manufacturing customers have historically focused on total cost of ownership, and our products performed well against that measure. Recently, we are seeing increased engagement, as our technology help customers address higher levels of safety and environmental regulations. Places like China, where they are launching the Blue Sky initiative, and Mexico, where new pollution controls are being implemented in certain cities, allow us to expand our business in underpenetrated markets.
Our company's purpose statement is Advancing Filtration for a Cleaner World, and these opportunities are exactly how we do that. I'm excited about the role Donaldson will play in driving toward solutions that have strong economic, social and environmental value propositions. With our deep understanding of filtration and media design and development, I believe we are uniquely positioned to meet that growing need.
As I close our prepared remarks, I want to once again recognize our team's efforts related to the coronavirus outbreak. The situation is changing rapidly, and they are working to stay on top of it. I am truly impressed by the level of global coordination, and I am inspired by the amount of support and teamwork. We often talk inside the Company about acting as one Donaldson, and I am witnessing the power of that mindset first hand, further adding to my conviction that Donaldson Company will continue to be a global leader in the filtration industry.
Now, I will turn the call back to Megan to open the line for questions. Megan?
Questions and Answers:
Operator
[Operator Instructions] Our first question is from Brian Drab with William Blair. Your line is open.
Brian Drab -- William Blair & Co. -- Analyst
Hi, good morning. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Brian.
Brian Drab -- William Blair & Co. -- Analyst
First on the Exhaust & Emissions business, can you make any comment on what the operating profit is within that business or even where it is relative to the corporate average?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. This is Tod, Brian. Overall, what we've said in the release that 2019, the revenue was roughly $120 million. We would also tell you that the profitability is below company average.
Brian Drab -- William Blair & Co. -- Analyst
Okay, thanks. And then, it sounds like the GTS business obviously is doing really well in terms of profitability. Was there anything in particular that happened in the quarter that drove that? Is that level of possibility sustainable? And was that the main factor that drove the outperformance in profitability for the Industrial segment?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Nothing unusual that we didn't expect. To be truthful, it's really just excellent execution. That team put together a strategic plan three years ago. Frankly, they just plan their work and work their plan, and they're just doing a great job.
Brian Drab -- William Blair & Co. -- Analyst
Okay. So, sustainable level there. And was that possibility in that business the main reason that you beat my expectations -- I think you beat your expectations for the quarter in profitability in Industrial? Is there anything going on in industrial? Or is that the main driver?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
No. I think the main driver overall of the Company is really that we've been working on our gross margins all year and we have had really strong execution to the gross margin improvement plans on a broad-based level all across the Company in all regions. And so, we're very proud of that, and you can see that reflective and leverage all the way to the bottom line.
Brian Drab -- William Blair & Co. -- Analyst
Okay. And then on pricing, you guys mentioned that price is going to allow you to offset some of these headwinds. Commodity prices have generally been coming down in steel and filtration media. I would imagine, there's polymer and oil derivatives. What are you expecting for price as contribution to revenue growth for the full year? And maybe you can say [Phonetic] what you're expecting in the second half of the year and how are you getting that price. Thanks.
Brad Pogalz -- Director of Investor Relations
Brian, this is Brad. The realized savings on a like-for-like was down in the low-single digits in the second quarter, so certainly creates some favorability. It's interesting though because it really is still a mix of price by raw material. So, filtration media for us actually ticked up slightly as a cost in the quarter, whereas steel, as you point out, is down, more aligned with what you're seeing in the indices.
In terms of the back half, we think the favorability will start to narrow because we had some favorability toward the back end of last year as we made progress on some of these initiatives. But I'd echo Todd's comment on execution. On our procurement side, they're doing a lot of work to be smart about how we're buying as well, and that's helping us also.
Brian Drab -- William Blair & Co. -- Analyst
So, in terms of price increases as a contribution to revenue growth, are you talking about, like, you're getting 50 basis points of price or 100 basis points? Is there any comments there that could be a little more specific?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
In terms of pricing or pricing of raw materials?
Brian Drab -- William Blair & Co. -- Analyst
Well, maybe I misheard. So, let's just be clear. I thought that in Scott's comments that he said that pricing would offset some of the headwinds that you're seeing there, and I'm assuming we're talking some -- about selling price. [Speech Overlap]
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
You're correct, Brian. This is Scott. You're correct. I did mention pricing, which meant prices to our customers. So, we expect to have a continued small pricing benefit, which will help to offset some of the negative currency impacts that we're expecting. So you had that correct.
Brian Drab -- William Blair & Co. -- Analyst
Okay. All right. Thanks. I'll get back in line, follow up [Phonetic] more later. Thank you.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Okay. Thanks.
Operator
Your next question is from Laurence Alexander from Jefferies. Your line is open.
Dan Rizzo -- Jefferies -- Analyst
Hi, this is Dan Rizzo on for Laurence. How are you?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good. Thanks.
Dan Rizzo -- Jefferies -- Analyst
When you talk about the gross margin improvements and the increased probability, is that more from mix improvement of new products? Or is that productivity gains?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Our gross margin improvement is driven by several factors. Number one and most important is the initiatives that we are specifically undertaking to really try and drive the gross margins up, which was always our plan for this year. So, the improvement this quarter of 170 basis points, we estimated that 100 basis points were driven solely by our improvement initiatives. We do get a benefit of mix and we also had a benefit of raw material pricing, offset slightly by deleveraging due to reduced volumes. So, there's several factors driving that, the biggest of which is the initiatives we're undertaking.
Dan Rizzo -- Jefferies -- Analyst
Okay. Thank you for the clarification. And then, a couple of questions. First, do you have any exposure to some 737 MAX within the Aerospace and Defense -- in the A&D segment?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
No.
Dan Rizzo -- Jefferies -- Analyst
Okay. And finally, just given the changed dynamics and the kind of violate landscape, how is that affecting, I guess, M&A or the pipeline of potential new acquisitions?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, there's no real change in the M&A activities. The way that we view the M&A activities, we would suggest you that we still have a full pipeline, strategic, and remind you that we remain a selective buyer, a disciplined buyer, if you will, relative to the metrics that we view from a valuation principle. So, no real behavioral changes at this point quarter-over-quarter.
Dan Rizzo -- Jefferies -- Analyst
Okay. Thank you very much.
Brad Pogalz -- Director of Investor Relations
Thanks Dan.
Operator
Your next question is from Nathan Jones with Stifel. Your line is open.
Adam Farley -- Stifel -- Analyst
Hi, good morning. This is Adam Farley on for Nathan.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Adam.
Adam Farley -- Stifel -- Analyst
Going back to the gross margin line and the capacity you guys added, so where is the business in terms of capacity constraints today? Are there still any pockets in the business experiencing capacity issues? Or is declining demand kind of easing that across the business?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, this is Tod, Adam. So capacity, we're comfortable with where we are relative to capacity. The expansions that we have done in the past year really are paying off. We talked about our supply chain normalization internally in the corporation that helping lift our gross margins, and that's part of that strong execution that you saw within the quarter. We still have some of that normalization ahead of us in the balance of the fiscal year, but we're very comfortable where we are on the capacity side of things and utilizations across the Company.
Adam Farley -- Stifel -- Analyst
Okay. Okay. And then turning over to Engine aftermarket, down in the quarter. Can you provide more color on what end markets were weakest? How aftermarket progressed through the quarter? And then the OE channel versus aftermarket, are you seeing destocking? I know, last quarter, you said there was real demand. Any color there would be great.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. So the decline, if you take a look statistically, is led by the US. It's our biggest piece of the aftermarket business. It does have a nuance in it when you compare it to Latin America. We have had some strategic shift of that supply chain normalization. If you just look and normalize that, then Latin America would be roughly about flat and the US would be down about 5% rather than the reported 6.8%. So that's a small nuance. But at a macro level, overall aftermarket, it's really a story of utilization now down across led, again as I said, by the US, but across all regions. And so, it starts with transportation, a lot less goods being moved. And then it moves into oil and gas, the oil and gas piece being more of a US-based story, therefore helping the US to lead the downward cycle. And so, OE versus independent channel is off, both about equal is how to really look at that. So when you factor in everything that we're seeing, we would suggest to you that we are not seeing some kind of a step-down and acute destocking across the industry. We would tell you that it's more of just a normalized slowdown, and you can see that in reduced pull-through to the overall aftermarket business.
Adam Farley -- Stifel -- Analyst
Thank you for taking my questions.
Brad Pogalz -- Director of Investor Relations
Thanks Adam.
Operator
I'll now turn the call back to Tod Carpenter for closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
That concludes today's call. I want to thank everyone listening for your time and interest in Donaldson Company. And to our 14,000 employees, I want to thank you for all you do. Your safety is our priority. So please continue to do an excellent job navigating in this dynamic situation. Thank you and goodbye.
Operator
[Operator Closing Remarks]
Duration: 36 minutes
Call participants:
Brad Pogalz -- Director of Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Brian Drab -- William Blair & Co. -- Analyst
Dan Rizzo -- Jefferies -- Analyst
Adam Farley -- Stifel -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q2 2020 Earnings Call Mar 5, 2020, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 36 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. We have implemented several countermeasures to mitigate risks to them, including travel restrictions, work from home flexibility, extended facility closures in China, incremental cleaning schedules, and the availability of specific items like hand sanitizer and face masks where appropriate. | Operator [Operator Closing Remarks] Duration: 36 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q2 2020 Earnings Call Mar 5, 2020, 10:00 a.m. Scott J. Robinson -- Senior Vice President, Chief Financial Officer Good morning, everyone. | Operator [Operator Closing Remarks] Duration: 36 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q2 2020 Earnings Call Mar 5, 2020, 10:00 a.m. Thank you for joining Donaldson's second quarter 2020earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson; and Scott Robinson, our Chief Financial Officer. | Operator [Operator Closing Remarks] Duration: 36 minutes Call participants: Brad Pogalz -- Director of Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President, Chief Financial Officer Brian Drab -- William Blair & Co. -- Analyst Dan Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q2 2020 Earnings Call Mar 5, 2020, 10:00 a.m. These products are about a quarter of total aftermarket, and second quarter sales were up in the mid-single digits, including PowerCore. | 54ef8ba5-18e6-4bce-8405-355468ece7a9 |
709789.0 | 2020-02-24 00:00:00 UTC | Donaldson is Oversold | DCI | https://www.nasdaq.com/articles/donaldson-is-oversold-2020-02-24 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $49.66 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Donaldson Co. Inc., the RSI reading has hit 28.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 43.9. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DCI's recent annualized dividend of 0.84/share (currently paid in quarterly installments) works out to an annual yield of 1.63% based upon the recent $51.62 share price.
A bullish investor could look at DCI's 28.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at DCI's 28.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $49.66 per share. | Indeed, DCI's recent annualized dividend of 0.84/share (currently paid in quarterly installments) works out to an annual yield of 1.63% based upon the recent $51.62 share price. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $49.66 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $49.66 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $49.66 per share. | e3eb747f-4426-49ee-9a2c-5720af861e06 |
709790.0 | 2020-02-11 00:00:00 UTC | Ex-Dividend Reminder: Booz Allen Hamilton Holding Donaldson and Emerson Electric | DCI | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-booz-allen-hamilton-holding-donaldson-and-emerson-electric-2020-02 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Booz Allen Hamilton Holding Corp. (Symbol: BAH), Donaldson Co. Inc. (Symbol: DCI), and Emerson Electric Co. (Symbol: EMR) will all trade ex-dividend for their respective upcoming dividends. Booz Allen Hamilton Holding Corp. will pay its quarterly dividend of $0.31 on 2/28/20, Donaldson Co. Inc. will pay its quarterly dividend of $0.21 on 2/28/20, and Emerson Electric Co. will pay its quarterly dividend of $0.50 on 3/10/20. As a percentage of BAH's recent stock price of $77.58, this dividend works out to approximately 0.40%, so look for shares of Booz Allen Hamilton Holding Corp. to trade 0.40% lower — all else being equal — when BAH shares open for trading on 2/13/20. Similarly, investors should look for DCI to open 0.39% lower in price and for EMR to open 0.68% lower, all else being equal.
Below are dividend history charts for BAH, DCI, and EMR, showing historical dividends prior to the most recent ones declared.
Booz Allen Hamilton Holding Corp. (Symbol: BAH):
Donaldson Co. Inc. (Symbol: DCI):
Emerson Electric Co. (Symbol: EMR):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.60% for Booz Allen Hamilton Holding Corp., 1.58% for Donaldson Co. Inc., and 2.71% for Emerson Electric Co..
In Tuesday trading, Booz Allen Hamilton Holding Corp. shares are currently up about 0.1%, Donaldson Co. Inc. shares are up about 0.7%, and Emerson Electric Co. shares are up about 0.6% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Booz Allen Hamilton Holding Corp. (Symbol: BAH), Donaldson Co. Inc. (Symbol: DCI), and Emerson Electric Co. (Symbol: EMR) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DCI to open 0.39% lower in price and for EMR to open 0.68% lower, all else being equal. Below are dividend history charts for BAH, DCI, and EMR, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Booz Allen Hamilton Holding Corp. (Symbol: BAH), Donaldson Co. Inc. (Symbol: DCI), and Emerson Electric Co. (Symbol: EMR) will all trade ex-dividend for their respective upcoming dividends. Booz Allen Hamilton Holding Corp. (Symbol: BAH): Donaldson Co. Inc. (Symbol: DCI): Emerson Electric Co. (Symbol: EMR): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DCI to open 0.39% lower in price and for EMR to open 0.68% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Booz Allen Hamilton Holding Corp. (Symbol: BAH), Donaldson Co. Inc. (Symbol: DCI), and Emerson Electric Co. (Symbol: EMR) will all trade ex-dividend for their respective upcoming dividends. Booz Allen Hamilton Holding Corp. (Symbol: BAH): Donaldson Co. Inc. (Symbol: DCI): Emerson Electric Co. (Symbol: EMR): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DCI to open 0.39% lower in price and for EMR to open 0.68% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Booz Allen Hamilton Holding Corp. (Symbol: BAH), Donaldson Co. Inc. (Symbol: DCI), and Emerson Electric Co. (Symbol: EMR) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DCI to open 0.39% lower in price and for EMR to open 0.68% lower, all else being equal. Below are dividend history charts for BAH, DCI, and EMR, showing historical dividends prior to the most recent ones declared. | 077a4521-fe95-4767-8248-bbd95f7453a4 |
709791.0 | 2020-01-31 00:00:00 UTC | Donaldson Breaks Below 200-Day Moving Average - Notable for DCI | DCI | https://www.nasdaq.com/articles/donaldson-breaks-below-200-day-moving-average-notable-for-dci-2020-01-31 | nan | nan | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $51.92, changing hands as low as $51.74 per share. Donaldson Co. Inc. shares are currently trading down about 3.2% on the day. The chart below shows the one year performance of DCI shares, versus its 200 day moving average:
Looking at the chart above, DCI's low point in its 52 week range is $45.82 per share, with $58.32 as the 52 week high point — that compares with a last trade of $51.83.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $51.92, changing hands as low as $51.74 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.82 per share, with $58.32 as the 52 week high point — that compares with a last trade of $51.83. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $51.92, changing hands as low as $51.74 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.82 per share, with $58.32 as the 52 week high point — that compares with a last trade of $51.83. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $51.92, changing hands as low as $51.74 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.82 per share, with $58.32 as the 52 week high point — that compares with a last trade of $51.83. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $51.92, changing hands as low as $51.74 per share. The chart below shows the one year performance of DCI shares, versus its 200 day moving average: Looking at the chart above, DCI's low point in its 52 week range is $45.82 per share, with $58.32 as the 52 week high point — that compares with a last trade of $51.83. Donaldson Co. Inc. shares are currently trading down about 3.2% on the day. | fe021bf0-d9ef-4a77-95c2-c0648e42a93a |
709792.0 | 2020-01-27 00:00:00 UTC | Donaldson Enters Oversold Territory | DCI | https://www.nasdaq.com/articles/donaldson-enters-oversold-territory-2020-01-27 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $52.19 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Donaldson Co. Inc., the RSI reading has hit 29.4 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 47.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DCI's recent annualized dividend of 0.84/share (currently paid in quarterly installments) works out to an annual yield of 1.57% based upon the recent $53.39 share price.
A bullish investor could look at DCI's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at DCI's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $52.19 per share. | Indeed, DCI's recent annualized dividend of 0.84/share (currently paid in quarterly installments) works out to an annual yield of 1.57% based upon the recent $53.39 share price. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $52.19 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $52.19 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DCI is its dividend history. Donaldson Co. Inc. (Symbol: DCI) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Donaldson Co. Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DCI entered into oversold territory, changing hands as low as $52.19 per share. | f458cebd-cc3d-447e-8e62-ed5487b8a27d |
709793.0 | 2019-12-29 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 12/29/2019 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-on-benjamin-graham-12-29-2019-2019-12-29 | nan | nan | The following are the top rated Consumer Cyclical stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
HOOKER FURNITURE CORPORATION (HOFT) is a small-cap value stock in the Furniture & Fixtures industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hooker Furniture Corporation is a home furnishings marketing, design and logistics company offering sourcing of residential casegoods and upholstery, as well as domestically-produced leather and fabric-upholstered furniture. The Company operates through three segments: casegoods furniture, upholstered furniture and all other. The Company's casegoods product categories include accents, home office, dining, bedroom and home entertainment furniture under the Hooker Furniture brand. Its residential upholstered seating companies include Bradington-Young, which is engaged in upscale motion and stationary leather furniture, and Sam Moore Furniture, which is engaged in upscale occasional chairs, settees, sofas and sectional seating with a focus on cover-to-frame customization. It also markets a line of imported leather upholstery under the Hooker Upholstery trade name. All other segment operates under the H Contract and Homeware brands.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: FAIL
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ACUITY BRANDS, INC. (AYI) is a mid-cap growth stock in the Furniture & Fixtures industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Acuity Brands, Inc. is a provider of lighting solutions for commercial, institutional, industrial, infrastructure and residential applications throughout North America. It offers a portfolio of indoor and outdoor lighting and building management solutions for commercial, industrial, infrastructure and residential applications. The portfolio of lighting solutions include lighting products utilizing fluorescent, light emitting diode (LED), organic LED (OLED), high intensity discharge, metal halide, and incandescent light sources to illuminate a number of applications. The solutions portfolio of the Company includes modular wiring, LED drivers, sensors, glass and inverters sold primarily to original equipment manufacturers (OEMs). Its lighting and building management solutions are marketed under various brand names, including Lithonia Lighting and Holophane. The Company also offers indoor mapping and location platform that supports navigation applications.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: FAIL
PRICE/BOOK RATIO: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
COLUMBIA SPORTSWEAR COMPANY (COLM) is a mid-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: FAIL
PRICE/BOOK RATIO: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts. The Company's segments include Engine Products, Industrial Products and Corporate. The Company's products are manufactured at approximately 44 plants around the world and through three joint ventures. The Company offers its products under the Ultra-Web, PowerCore and Donaldson brands. The Engine Products segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense and truck end-markets and to independent distributors, OEM dealer networks, private label accounts and large equipment fleets. The Industrial Products segment sells to various industrial dealers, distributors, OEMs of gas-fired turbines and OEMs and end users requiring clean air. Its products include dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines and polytetrafluoroethylene (PTFE) membrane-based products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: FAIL
PRICE/BOOK RATIO: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
DAIMLER AG (DDAIF) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Daimler AG (Daimler) is an automotive engineering company. The Company is engaged in the development, production and distribution of cars, trucks and vans in Germany, and the management of the Daimler Group. Daimler's segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The Mercedes-Benz Cars segment includes vehicles of the Mercedes-Benz brand, including the brands, Mercedes-AMG and Mercedes-Maybach, as well as the Mercedes me brand. The Daimler Trucks segment develops and produces vehicles under the brands, including Mercedes-Benz, Freightliner, Western Star, FUSO and BharatBenz. The Mercedes-Benz Vans segment is a supplier of a range of vans and associated services. The Daimler Buses segment sells completely built-up buses under brand names, including MercedesBenz and Setra. The Daimler Financial Services segment supports the sales of its automotive brands in approximately 40 countries around the world.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Benjamin Graham has returned 456.55% vs. 225.93% for the S&P 500. For more details on this strategy, click here
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ACUITY BRANDS, INC. (AYI) is a mid-cap growth stock in the Furniture & Fixtures industry. Daimler's segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Company Description: Hooker Furniture Corporation is a home furnishings marketing, design and logistics company offering sourcing of residential casegoods and upholstery, as well as domestically-produced leather and fabric-upholstered furniture. The Company's segments include Engine Products, Industrial Products and Corporate. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DONALDSON COMPANY, INC. (DCI) is a mid-cap growth stock in the Auto & Truck Parts industry. Company Description: Hooker Furniture Corporation is a home furnishings marketing, design and logistics company offering sourcing of residential casegoods and upholstery, as well as domestically-produced leather and fabric-upholstered furniture. The Company's segments include Engine Products, Industrial Products and Corporate. | b6415406-80a1-4844-ae76-517909e086a6 |
709794.0 | 2019-12-23 00:00:00 UTC | August 2020 Options Now Available For Donaldson (DCI) | DCI | https://www.nasdaq.com/articles/august-2020-options-now-available-for-donaldson-dci-2019-12-23 | nan | nan | Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the August 2020 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new August 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $55.00 strike price has a current bid of 80 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $54.20 (before broker commissions). To an investor already interested in purchasing shares of DCI, that could represent an attractive alternative to paying $58.00/share today.
Because the $55.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 65%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.45% return on the cash commitment, or 2.19% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Donaldson Co. Inc., and highlighting in green where the $55.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $60.00 strike price has a current bid of $1.05. If an investor was to purchase shares of DCI stock at the current price level of $58.00/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $60.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.26% if the stock gets called away at the August 2020 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DCI shares really soar, which is why looking at the trailing twelve month trading history for Donaldson Co. Inc., as well as studying the business fundamentals becomes important. Below is a chart showing DCI's trailing twelve month trading history, with the $60.00 strike highlighted in red:
Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 53%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.81% boost of extra return to the investor, or 2.73% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 39%, while the implied volatility in the call contract example is 31%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $58.00) to be 24%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if DCI shares really soar, which is why looking at the trailing twelve month trading history for Donaldson Co. Inc., as well as studying the business fundamentals becomes important. Below is a chart showing DCI's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the August 2020 expiration. | Below is a chart showing DCI's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the August 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new August 2020 contracts and identified one put and one call contract of particular interest. | Below is a chart showing DCI's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the August 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new August 2020 contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new August 2020 contracts and identified one put and one call contract of particular interest. Below is a chart showing DCI's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the August 2020 expiration. | 4c6335c1-541f-4c49-8acb-a281c2526e29 |
709795.0 | 2019-12-03 00:00:00 UTC | Donaldson Co (DCI) Q1 2020 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q1-2020-earnings-call-transcript-2019-12-03 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q1 2020 Earnings Call
Dec 3, 2019, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Donaldson's Q1 FY '20 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Mr. Brad Pogalz, Director of Investor Relations. Please go ahead, sir.
Brad Pogalz -- Director, Investor Relations
Thanks, Julian. Good morning, everyone. Thank you for joining Donaldson's first quarter 2020earnings conference call With me today are Tod Carpenter, Chairman, CEO, and President of Donaldson and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our first quarter performance and an overview of what we are planning for the balance of the year.
During today's call, we may reference non-GAAP metrics. Please note that there is a reconciliation of GAAP to non-GAAP metrics within the schedules attached to this morning's press release. I want to remind everyone that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.
With that, I will now turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Brad. Good morning, everyone.
I want to highlight two important points in our quarter. First quarter market conditions were consistent with what we expected and we are pleased with our improvement in gross margin. As we look ahead, our perspective on fiscal '20 sales, operating margin, and EPS is aligned with our prior guidance. We are planning for an uneven demand environment this year and we saw that in first quarter.
During 2020, we expect softer sales of new equipment, a stable base of recurring revenue and strong increases in our strategic growth areas. We also expect operating margin will be up from last year, driven by gross margin. Scott will provide more details later.
So, I will now turn to an overview of first quarter sales. Total sales of $673 million were down 4% from last year. Currency was a headwind of 140 basis points, which we offset with the benefits from BOFA and price realization. Sales in the Engine segment declined 4.5%, driven primarily by our first-fit businesses.
On-Road sales were down 11% in the quarter, with China accounting for nearly half of the decline. We are now lapping some of our earliest fuel wins in the region and demand has yet to stabilize. As we expand our business with Chinese manufacturers, we expect On-Road sales will grow over time. Until then, we are focused on building and deepening these new relationships, winning program and launching PowerCore in China.
In the US, we are seeing early signs of the peaking truck market. After growing more than 30% in each of the last two years, On-Road sales in the US were about flat with last year. Growing production of Class 8 trucks is widely expected and that's reflected in our full-year forecast as well.
First quarter sales in Off-Road were down 10%. Exhausted emissions accounted for more than half of the decline, due in large part to timing. We benefited throughout 2019 from pre-buys in Europe related to an upcoming regulatory change. So, we expect the business will be down this year before ramping up again in 2021.
Slowing market conditions are also affecting Off-Road. We estimate the construction cycle is at or near its peak. For Ag and mining, the recoveries are muted, as manufacturers navigate geopolitical and trade-related uncertainties. As our first-fit markets predictably cycle, we remain focused on winning new programs with innovative technology. We have a robust pipeline with more than $0.5 billion of future opportunities and our razor to sell razor blade solutions are outperforming legacy technology quarter-after-quarter.
We see similar dynamics in our Aftermarket business. Total Aftermarket sales were down 3.6% in first quarter, while technology-based razor blade products were up in the mid-single digits. We saw most of that benefit in the OE channel of Aftermarket, which was down in the low-single digits, as innovative products could not fully offset the impact from slowing market conditions.
Backlog and order levels have been fairly stable in recent months. So, we believe the OE channel performance is more about demand pull-through than destocking at this point. The independent channel, which is about 60% of total Aftermarket was also down in the low-single digits. We are seeing weakness in the US, due in part to oil and gas, while sales into Europe are strong. The independent channel tends to move with more demand. So it's a useful proxy for equipment utilization.
Our Aerospace and Defense business had another strong quarter. Sales were up 11%, with helicopter and ground defense programs driving the growth.
Turning to our Industrial segment. First quarter sales were down 3%. Sales in Gas Turbine Systems or GTS declined 19%, due in large part to small turbines. Our backlog supports increasing sales over the next couple quarters, so we expect that first quarter will be the lowest level for GTS this year.
In Special Applications, sales were down 4% last quarter, due to the secular pressure in the disk drive market. Sales of Industrial Filtration Solutions or IFS, were about flat with last year, but that includes a mix of results across several areas.
I want to first point out that BOFA added about $10 million to IFS in the quarter, with incremental sales of more than $8 million as we hit the one-year anniversary of the acquisition. The largest portion of IFS is our dust collection business, which we call industrial air filtration or IAF. These products account for about 60% of the total IFS, and sales were down in the high-single digit last quarter. As expected, the market for new equipment remains soft. Quoting activity is stable, but customers still appear cautious as they deal with macroeconomic uncertainty.
First quarter sales of IAF replacement parts were about flat with last year, as share gains helped offset slowing industrial production. China is one example of where we are gaining share. We are capitalizing on the momentum created by the Blue Sky initiative and sales of IAF replacement parts in that region were up in the high-teens last quarter. IAF replacement parts represent a large portion of our Advance and Accelerate portfolio, and we expect sales will continue to ramp up this year, as we make incremental investments to support that team.
Process Filtration is also all about share gains, and we are targeting the food and beverage market where the margins are above our company average. First quarter sales were up in the low-teens and that's on top of a 20% increase last year. We are expanding the LifeTec brand, investing in new capacity and developing a strong sales team to build on the momentum we have in Process Filtration.
There are a lot of positive things happening across the company and they are not isolated to our Advance and Accelerate portfolio. The Critical Core businesses are winning new programs for future revenue. Mature businesses are generating profit and cash flows that can be reinvested, and our fix and reposition teams are pursuing margin enhancement opportunities. We are confident that we have outlined the right mission for each piece of our portfolio, and we expect that will drive value creation well beyond this fiscal year.
I'll now turn the call to Scott for his update. Scott?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Thanks, Tod. Good morning, everyone. We generated first quarter sales of $673 million and EPS was $0.51 per share. First quarter operating margin declined 90 basis points to 13.2%, and our EBITDA margin of 16.7% was down 40 basis points. The delta between the two rates reflects incremental depreciation related to our significant capacity investments. While operating margin is still our primary metric, EBITDA offers a helpful reference point as we progress through two years of elevated capital expenditures.
As the rate of sales, operating expenses were up 130 basis points from last year. The increase was driven by lost leverage on lower sales and investments in our strategic growth opportunities. For example, R&D was up 5% in the quarter and we are adding more headcount and tools to the Industrial segment to build our connected solutions and dust collection businesses.
We offset a portion of these investments with gross margin, which grew 40 basis points in the first quarter. Importantly, gross margin was up in both segments. The increase was driven by benefits from pricing, along with lower raw material supply chain costs, which was partially offset by lack of volume leverage on lower sales.
While we are pleased with the gross margin increase, we also recognize there is more work to do to create a sustainable level of improvement. Our top initiatives include leveraging new capacity, lower the cost of manufacturing and optimize the supply chain, costs take-out within our mature manufacturing plants and strengthening our part level profitability, including continued refinement of pricing strategies. We expect to complete many of these projects over the coming quarters, and we will continue to pursue new opportunities that will further enhance our gross margins.
Turning to our other financial metrics. Our leverage ratio at the end of the quarter was slightly above one times net debt to EBITDA, which is a comfortable spot for us. Cash conversion was 75% in the quarter, up from above 50% last year. We're making progress on releasing days sales outstanding, and we have ramped up our focus on inventory, and payables.
I want to take a quick moment to thank all the people involved in driving these improvements, which are enabled by our global ERP. Fiscal '20 marks the beginning of our fourth year of being on the system, and our team is focused on standardizing, optimizing, and globalizing our processes. So a big thanks to all those people. I sincerely appreciate their passion, and I'm confident they will continue finding ways to make us more efficient organization.
I'll now turn to a review of our fiscal '20 forecast. As Tod mentioned earlier, there are no changes to the guidance ranges we provided in the last quarter. I also want to remind everyone that we intentionally kept the guidance ranges wide this year to account for the greater level of uncertainty in the operating environment. One quarter end, we still feel the same way. Between currency and commodity price fluctuations, the political environment and trade-related concerns, we feel it's prudent to maintain that approach.
Starting at the top, full-year sales are forecast between a 2% decline and a 4% increase from last year. This range includes a headwind from currency of 1% to 2%, partially offset by pricing benefits of 1%. Engine sales are projected down 4% to up 2%, with On-Road and Off-Road each declining in the mid-teens.
On-Road sales are likely to be pressured by a slowdown in Class 8 truck production. Off-Road will have the Exhaust & Emissions headwind, and we also expect markets will remain soft. Aftermarket sales are projected to increase in the low to mid-single digits, reflecting share gains and continued strength in sales of innovative products.
PowerCore is a great example of how we plan to keep growing. Aftermarket PowerCore sales are up in the mid-single digits last quarter, achieving a new quarterly sales record. When we talk about growing Aftermarket with share gains, greater retention rates from proprietary products are a key part of that strategy.
Rounding out Engine, sales of Aerospace and Defense are planned up in the mid single-digits, reflecting growth in commercial aerospace and ground defense. Sales in the Industrial segment are planned up between 2% and 8%. We expect a low single-digit decline in Special Applications, with secular headlines in disk drives being partially offset by growth in venting. GTS sales are forecasted up in the low single-digits, reflecting higher sales of replacement parts.
In IFS, sales are planned up in the mid to high single-digits, including the incremental benefit from BOFA. We received some questions about IFS after the last call, so let me add a little more color. First, we aren't banking on very favorable market conditions. Let me break down IFS. About half of the total business unit is related to new equipment. That's made up of things like new dust collectors and OE systems for compressors. We're planning on these businesses to be down a bit this year, reflective of the environment. The other half of AFS is dominated by our Advance and Accelerate portfolio, including dust collection replacement parts and Process Filtration.
We expect healthy growth rates in these businesses will more than offset a softer demand environment for new equipment. I'll also attempt to get another -- in flux of [Phonetic] another question you might have, we do expect sequential momentum in IFS over the course of the year. We expect benefits from the investments we've been making will layer in over the next several quarters.
Consequently, our second half growth in IFS should be much better than we expect in the first half of 2020. I'll talk more about calenderization in a few moments. But first, I'll go through the rest of our fiscal '20 guidance metrics. Operating margin is forecast between 13.9% and 14.5%. That represents an increase from last year of 30 basis points to 90 basis points, which we expect to be driven entirely by gross margin.
There are a lot of moving pieces affecting our gross margin, as we stand-up new capacity while working to transfer production from one facility to another. We expect to complete many of these projects as we move through the year, setting this up to deliver our full-year gross margin target.
We are projecting expense rate will be flat to slightly up from last year, with higher incentive compensation of about $10 million being the largest notable item. For our other operating metrics, we planned interest expense of $18 million to $20 million, other income of $4 million to $8 million and a tax rate between 25% and 27%. We expect capital expenditures to remain elevated at $110 million to $130 million. However, the pace of spend will likely drift down over the course of the year as projects are completed.
We also expect to repurchase 2% of the shares again this year, which is consistent with our recent trends. Altogether, we're planning cash conversion of 80% to 95% and GAAP EPS between $2.21 and $2.37.
Before I turn the call back to Tod, let me further elaborate on the calendarization of 2020 sales and margin. Consistent with what we outlined last quarter, we expect better year-over-year performance in the second half than the first. The one reason -- one reason for the cadence is that second half has an easier comparison. When we reflect on the second half of 2019, FX headwinds are more severe and engine was under pressure from OE destocking. We don't expect to repeat that this year, which results in better performance.
The only notable exception is On-Road, where the widely anticipated Class 8 production slowdown will be more of a headwind later in our fiscal year. For operating margin, the full-year growth of 30 basis points to 90 basis points will be driven by performance in the second half. The first half has a tough comp to deal with, and we plan to realize benefits from our margin improvement initiatives later this fiscal year.
While we would happily accept a little less uncertainty, I am proud of the way our global team is responding to the uneven environment. I should point out, as part of why our business is uneven is because of the choices we are making. As markets become less favorable, we are building efficiencies in certain businesses while continuing to press for growth in others. Our teams are doing a solid job of balancing these opportunities, and I'm confident that we are making the right decisions to position us for long-term success.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. I'm proud of the work our team is doing to navigate the environment and deliver on our commitments. I'm also proud of the spirit of innovation I see everywhere at Donaldson. So, let me take a moment to share a few examples. We've announced some new developments with connected solutions in the past couple of months. So, I'll start there.
Within the Engine segment, we continue to leverage the Filter Minder. We bought this Iowa-based company a few years ago because of their capabilities related to sensors and indicators. Today, it's our center of excellence for our Engine segment's connected solutions business. Our newest product is a wireless monitoring system for truck air filters, which we believe has great potential for fleets.
It can be easily retrofitted onto existing systems, giving our customers better visibility into filtration performance and allowing them to optimize service intervals. This technology has clear value to fleets, and we also see great opportunities with the OE customers. One of our R&D priorities relates to the move from what we call best effort filtration to intelligent filtration.
In short, we believe we can create more value by designing filters that are rightsized to the customer's application. Given our deep expertise with filter media development and design, we believe we are uniquely positioned to meet that need. With our breadth of offering and the depth of knowledge, we also feel uniquely positioned to meet the needs of our industrial customers.
One year ago, we announced an early adopter program for dust collection monitoring and we followed that with the commercial launch this past September. Our new offering, which we call iQ is a subscription-based service that allows customers to receive real-time information about the performance of their dust collectors. Once again, we made it easy to install and it can be used on any type of dust collector. By connecting these collectors, we help our customers save energy costs and reduce unplanned downtime, and we create greater ability to retain our replacement part sales.
While it's still very early, we believe our connected solutions will deepen our customer relationships and create access to new growth opportunities. Another way we are deepening relationships is with e-commerce. We process nearly $110 million worth of orders for more than 2,000 customers in the first quarter, and we have been constantly enhancing the site.
We recently opened the platform to guest orders for many of our Industrial segment products, which will make it easier for us to sell the hundreds of thousands of potential dust collector customers. We also improved the experience for our customers with the new personalization capabilities.
We view shop.donaldson.com as a valuable new channel to reach a wide range of existing and potential customers. Donaldson is a technology-led filtration company and it's exciting for me to watch us leverage our expertise and press into these new and dynamic opportunities. I'm confident that we are making the right strategic choices today that will position us to deliver long-term profitable growth.
Now, I will turn the call back to Julian to open the line for questions. Julian?
Questions and Answers:
Operator
Thank you. [Operator Instructions] Your first question comes from Brian Drab from William Blair. Your line is open.
Brian Drab -- William Blair & Company -- Analyst
Morning. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hey, Brian.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Hey, Brain.
Brian Drab -- William Blair & Company -- Analyst
Hey. So, Scott kind of proactively was addressing this, but I was wondering if I could just have a little more detail around the Industrial segment. I'm just looking at the numbers and seeing in the guidance for the Industrial segment overall to grow 5% for the year after being down what looks like 6% organically in the first quarter. And then you have the benefit of the BOFA acquisition. That contribution of acquisition revenue won't be there for the balance of the year. So, can you just talk a little bit more about how -- I mean it looks like you need to grow 6% plus high single-digits sort of for the rest of the year in Industrial. And how do you do that?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah. So, I'll start and then maybe Tod can jump in. So yeah, the guidance is today, as you noted, with the current for IFS being mid-single to high-single, GTS is low single and then Special Apps is down low singles. And if you look at the implied, as you noted, that comes up a little. The comps get a little bit easier in the second half. In GTS, it was down a little bit in the first quarter and we expect that to be the weakest quarter of the year. So when you roll those up, we still see a 2% to 8% guidance range.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, Brian. It's Tod. Maybe a little bit more color as well. It's clear that what's happening also, we ended the year talking about the risk relative to industrial-based equipment sales in our Industrial Air Filtration business. I commented that in the script. And consequently, we do recognize that as a risk. Looking forward, however, we want to emphasize that we do not see a taper off of quoting activity at this point. We do see a cautiousness and an elongation of quote to order cycles within this first quarter, but we don't expect it to step down at this point. And that's important to note as we look to the balance of the guide.
Brian Drab -- William Blair & Company -- Analyst
Okay. Thanks. So, you don't view this guidance as particularly aggressive, right? And you wouldn't -- would you say, which way you'd lean toward low-end or high-end of that guidance or just kind of -- here's the range and it's wide given the uncertainty?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Right. We went into the year and we talked about leaving the ranges wide due to the uncertainties that we see. They still remain wide. We also went into the year talking about if we went to the low end, the risk would be equipment-based revenue. Those all still hold true for what we've said 90 days ago.
Brian Drab -- William Blair & Company -- Analyst
Okay. Thanks. And then, you gave some numbers around China, but can you just give us what the percentage of total revenue was in China in the first quarter? And then, I think you may have given some of this, but the decline or growth in both Industrial and the Engine segments in China in the quarter?
Brad Pogalz -- Director, Investor Relations
Hi, Brian. This is Brad. I'll take that. China in total is right about 6% of total Donaldson revenue. Engine in the quarter was down in the high singles. Industrial was down in the 20% range. There are couple of caveats with industrial that I want to call out. The first is GTS. That's a pretty small business and that had a pretty notable decline due to turbines -- in large turbines in the first quarter.
And then on top of it, remember half of our disk drive business comes out of China, so disk drive in total was something like mid-teens as a percent of China. And that business is just under the secular pressure. So the decline for Industrial is a little bit misleading, down 20% range. But while we're on the topic, I guess I also want to point out the couple of things that were encouraging to us were the engine aftermarket business and our Industrial Air filtration businesses. Both had pretty strong growth in the quarter in China. So, we are gaining share on the replacement parts side. It's just that, that market and as Tod and Scott alluded to, that's more of a volatile market than the rest of the world.
Brian Drab -- William Blair & Company -- Analyst
Okay. Thanks, Brad. How does it break down in China between Engine and Industrial?
Brad Pogalz -- Director, Investor Relations
Engine is a little more than half and again, keep that disk drive in mind. [Speech Overlap]
Brian Drab -- William Blair & Company -- Analyst
Okay. Thanks very much. I'll pass it on.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Brian.
Operator
Your next question comes from Richard Eastman from Baird. Your line is open.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yes. Good morning.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Just a quick question around -- in the IFS business, when we talk about the strength on the process side there, do our wins in process give you visibility at this kind of growth rate through the balance of the year as they kind of phase in and ship. And then also within process in particularly, food and beverage, is that business -- are those wins skewed toward Europe?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Rick, this is Tod. So if you take a look at the way our backlog flows through the food and beverage, our process space filtration businesses, it's really very similar to all of the other more repeatable or replacement parts businesses in Donaldson, a bit of a shorter type of the time frame. So say 90 days or so, it's not like some of our equipment-based businesses that give you six months and seven months visibility. So, that would be the answer to relative to our time sense. We do see good order momentum within that particular business. We're really right where we thought we would be in our growth rates within the plan. And yes, it is slanted more toward Europe with roughly about 60% of it being in Europe.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
I see. Okay. And then just a -- maybe just one last question around the engine aftermarket. Given how that business performed here in this quarter, I guess you referenced the fact that the marketplace now from your perspective is really being driven by demand and utilization rates. Are you pretty comfortable here that the big step downs -- destocking step downs are pretty much washed out of the numbers? And as we move forward here, we're really looking at a demand proxy here?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, Rick. As we actually look at the first quarter performance for engine aftermarket and we look all across the world, all areas of the world are continuing to move in a positive direction, were up year-over-year. Our aftermarket headwinds are a US-based story. And when we further break that down, it really goes off the US, it points directly more toward an oil and gas type of the story. And so therefore, we're pretty comfortable that it's more utilization within that particular segment. And so it's a US-based headwind story.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Okay. And similarly in aftermarket, again, being US-based, but is Latin America -- is that growth rate -- is that shared gain like in a channel? Or -- I wouldn't think the markets are quite that strong. The business probably isn't that big. But are there some channel gains in Latin American aftermarket?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
There are some channel gains. There is clear market gains within that particular segment. If you talk to Brazil, for example and other countries, we do have a slight phenomenon there. However, to where we're shifting some of the manufacturing from the United States to our Latin America-based facilities and then shipping directly to customers, so there is a slight transfer tailwind, if you will. But yes, we also have clear share gains.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yeah. Sure. Okay. Great. Thank you.
Brad Pogalz -- Director, Investor Relations
Thanks, Rick.
Operator
Your next question comes from Laurence Alexander from Jefferies. Your line is open.
Daniel Rizzo -- Jefferies -- Analyst
Good morning. This is Dan Rizzo on for Laurence. How are you?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi, Dan.
Daniel Rizzo -- Jefferies -- Analyst
A&D seems to be and it continues to do very well. I was just wondering what the visibility on that and when you might think that could be reaching peak as well? I mean, is it just -- how far out can you see?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So on the defense side of things where it's largely a ground-based vehicle, we have a good long time. In fact, it's one of the longest in the company's. I would, however, caution that it gets lumpy within the ground-based vehicles when we get drop in retrofit orders from allies, if you will, that also use our ground-based vehicles, are being in the United States governance ground-based vehicle.
So, we have a long, long visibility there. We are picking up share within the aerospace segment primarily to replacement parts. For our helicopter-based business, that's a little bit shorter visibility, more like a typical replacement parts business but just generally, the larger share of our aerospace and defense business. When you put all that OE and ground-based vehicle business together, we do have quite a significant time visibility on.
Daniel Rizzo -- Jefferies -- Analyst
All right. Thank you. Thanks for the clarification there. And then, you said R&D is up 5% in the quarter. I mean, given what the dynamics of everything you guys are doing, is there a point where you think R&D is going to peak anytime soon or is it going to continue to be elevated, I guess, for foreseeable future?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
We're continuing to invest in our opportunities, where we see really opportunities to support our strategy of further diversification in the company and strengthening our technical sciences for filtration. This is the third year in a row, whereby we have increased our R&D by roughly 10%. And so we'll continue to do so in support of our strategy. We are on a longer-term path to increase our R&D spend from 2% to 3% to 3% to 4%. However, I do not feel encumbered to raise it to 3%. I do feel that it's important to make sure that it's funded properly to support our strategic chosen initiatives and I think we've done a very good job there.
Daniel Rizzo -- Jefferies -- Analyst
All right. Thank you very much.
Operator
Your last question comes from Nathan Jones from Stifel. Your line is open.
Adam Farley -- Stifel, Nicolaus & Company -- Analyst
Hi. Good morning. This is Adam Farley on for Nathan.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hey, Adam.
Adam Farley -- Stifel, Nicolaus & Company -- Analyst
Hey. So turning to gross margins and capacity additions, maybe just a little more color on what has been brought on line so far and maybe how should we expect those additions and gross margin expansion to sequence going forward?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So, this is Tod. I'll start and then maybe Scott can give a little bit more color. What has been brought online so far is some of the expansions within Europe, some of the expansions also down in Latin America. And in US, the major expansion that we have still lies ahead of us. And so as we talk about our gear and as it unfolds when we refer to our gross margin expansion, while we have some good work that's already hitting the gross margin opportunity, we've always talked about the project-based work being more of a second half story versus the first half story. And so much of that capacity expansion where we'll be really realizing that internal supply chain balancing really lies ahead of us. So, we will look for that gross margin expansion as it goes through the year to really ramp up.
Adam Farley -- Stifel, Nicolaus & Company -- Analyst
And then with demand looking potentially weaker than expected, are there any additional cost levers that you could pull in the event that demand takes another step down?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. So, this is Tod again. So when we look at our overall corporation, I think, when you look at our history and how we react to the overall cycles that we experience with our company, we have a strong history of performing overall adjustments for the transactional base across the corporation and we'll continue to do that.
We have been doing that even in last year, in the second quarter, in the -- from the second quarter, third quarter, fourth quarter and we have done a bit of that also in the first quarter of this fiscal year. And we'll just continue to do that. For us, that's standard work in normalizing the overall Interim supply base in support of our customers. And so we'll continue to look to do that.
Adam Farley -- Stifel, Nicolaus & Company -- Analyst
Okay. Great. Thank you.
Operator
Our next question comes from Richard Eastman from Baird. Your line is open.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yes. Thanks for the follow up. Could I just ask -- could we just tease through, maybe for a second, the gross margin impact, the 40 bps? And Scott, maybe this is for you, I guess. But if we could just tease through that for a second because I think the commentary kind of blew by me a little quickly. But I think you said, the raws were down year-over-year. So, you'll get maybe 20 basis points of the 40 basis points out of price and then raws were down. Maybe you could just tease through that a little bit if you don't mind.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, there is a lot, obviously, in the soup when it comes to the margin improvement and our whole operating improvement for the year is based on our plan, gross margin improvements. As you mentioned, we had benefits from pricing and lower supply chain costs, those were offset because our volume was a bit down. And we continue to work the projects as Tod mentioned, the capacity expansion. And we're -- I would say we're bringing on new projects pretty evenly throughout the remainder of the year. And we kind of expect a slow and steady improvement throughout the year.
So, I think you had it right when you talked about benefits from pricing, lower supply chain costs offset partially in the first quarter by lower volumes. And then from there for the rest of the year, we're expecting 30 basis points to 90 basis points of operating margin improvement and that's all driven by gross margin. And so we feel comfortable that we're going to kind of have a slow and steady march up for the next three quarters.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yeah. And so that -- if we did 40 bps here in the first -- in the first quarter with down sales, if we hold that maybe based on price and lower raws, then the 40 basis points grows in the back half with these project contributions.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, I think that's fair.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
And better volume for that matter. Okay.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah. And in the plastic also we're planning.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Okay. Excellent. Thank you, again. Oh, sorry.
Brad Pogalz -- Director, Investor Relations
This is Brad. I'll just add one point on that. The raws are going to be more of a favorability in the first half of the year than the last half. If you recall one year ago, prices were higher for some of the key imports like steel and media than they were toward the back half. So just keep that in mind. That's not a banked and steady amount of favorability.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yeah. Yeah. Okay. Excellent. Thank you.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Thanks, Rick.
Operator
We have no further questions. I would like to hand the call back over to Mr. Tod Carpenter for closing remarks.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
That concludes today's call. I want to thank, everyone, listening for your time and interest in Donaldson Company. Have a great day. Goodbye.
Operator
[Operator Closing Remarks]
Duration: 39 minutes
Call participants:
Brad Pogalz -- Director, Investor Relations
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Brian Drab -- William Blair & Company -- Analyst
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Daniel Rizzo -- Jefferies -- Analyst
Adam Farley -- Stifel, Nicolaus & Company -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Co (NYSE: DCI) Q1 2020 Earnings Call Dec 3, 2019, 10:00 a.m. Operator [Operator Closing Remarks] Duration: 39 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst Daniel Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel, Nicolaus & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. IAF replacement parts represent a large portion of our Advance and Accelerate portfolio, and we expect sales will continue to ramp up this year, as we make incremental investments to support that team. | Operator [Operator Closing Remarks] Duration: 39 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst Daniel Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel, Nicolaus & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q1 2020 Earnings Call Dec 3, 2019, 10:00 a.m. Our top initiatives include leveraging new capacity, lower the cost of manufacturing and optimize the supply chain, costs take-out within our mature manufacturing plants and strengthening our part level profitability, including continued refinement of pricing strategies. | Operator [Operator Closing Remarks] Duration: 39 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst Daniel Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel, Nicolaus & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q1 2020 Earnings Call Dec 3, 2019, 10:00 a.m. We have been doing that even in last year, in the second quarter, in the -- from the second quarter, third quarter, fourth quarter and we have done a bit of that also in the first quarter of this fiscal year. | Operator [Operator Closing Remarks] Duration: 39 minutes Call participants: Brad Pogalz -- Director, Investor Relations Tod E. Carpenter -- Chairman, President and Chief Executive officer Scott J. Robinson -- Senior Vice President and Chief Financial Officer Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst Daniel Rizzo -- Jefferies -- Analyst Adam Farley -- Stifel, Nicolaus & Company -- Analyst More DCI analysis All earnings call transcripts 10 stocks we like better than Donaldson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Donaldson Co (NYSE: DCI) Q1 2020 Earnings Call Dec 3, 2019, 10:00 a.m. First quarter sales were down 3%. | 1f55adad-6f47-4bf8-9ed6-01224f755fda |
709796.0 | 2019-11-22 00:00:00 UTC | Daily Dividend Report: ESSA, HD, CTL, KEY, DCI | DCI | https://www.nasdaq.com/articles/daily-dividend-report%3A-essa-hd-ctl-key-dci-2019-11-22 | nan | nan | ESSA Bancorp, the holding company for ESSA Bank & Trust, today announced that its Board of Directors declared a dividend of eleven cents ($0.11) per share. The dividend represents an increase of $0.01 per share, or 10% over the dividend paid in the previous quarter and is payable to shareholders of record as of December 16, 2019, payable on December 30, 2019.
The Home Depot, the world's largest home improvement retailer, today announced that its board of directors declared a third quarter cash dividend of $1.36 per share. The dividend is payable on December 19, 2019, to shareholders of record on the close of business on December 5, 2019. This is the 131st consecutive quarter the company has paid a cash dividend.
CenturyLink announced that its Board of Directors voted to declare a regular quarterly cash dividend of $0.25 per share. The dividend is payable Dec. 13, 2019, to shareholders of record at the close of business on Dec. 2, 2019. The ex-dividend date will be Nov. 29, 2019.
KeyCorp announced today that its Board of Directors declared the following dividends for the fourth quarter of 2019. A cash dividend of $0.185 per share on the corporation's outstanding common shares. The dividend is payable on December 13, 2019 to holders of record of such common shares as of the close of business on December 3, 2019.
Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable December 27, 2019, to shareholders of record on December 10, 2019. The Company has paid a cash dividend every quarter for 64 years, and Donaldson Company is a member of the S&P High-Yield Dividend Aristocrats Index after increasing the dividend annually for more than 20 years.
VIDEO: Daily Dividend Report: ESSA, HD, CTL, KEY, DCI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: ESSA, HD, CTL, KEY, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. CenturyLink announced that its Board of Directors voted to declare a regular quarterly cash dividend of $0.25 per share. KeyCorp announced today that its Board of Directors declared the following dividends for the fourth quarter of 2019. | VIDEO: Daily Dividend Report: ESSA, HD, CTL, KEY, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ESSA Bancorp, the holding company for ESSA Bank & Trust, today announced that its Board of Directors declared a dividend of eleven cents ($0.11) per share. The Home Depot, the world's largest home improvement retailer, today announced that its board of directors declared a third quarter cash dividend of $1.36 per share. | VIDEO: Daily Dividend Report: ESSA, HD, CTL, KEY, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The dividend represents an increase of $0.01 per share, or 10% over the dividend paid in the previous quarter and is payable to shareholders of record as of December 16, 2019, payable on December 30, 2019. Donaldson today announced that its Board of Directors declared a regular cash dividend of 21.0 cents per share, payable December 27, 2019, to shareholders of record on December 10, 2019. | VIDEO: Daily Dividend Report: ESSA, HD, CTL, KEY, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The dividend represents an increase of $0.01 per share, or 10% over the dividend paid in the previous quarter and is payable to shareholders of record as of December 16, 2019, payable on December 30, 2019. The dividend is payable on December 13, 2019 to holders of record of such common shares as of the close of business on December 3, 2019. | 37d55f17-f1aa-416c-ace6-7ebd727d3668 |
709797.0 | 2019-10-28 00:00:00 UTC | Donaldson Reaches Analyst Target Price | DCI | https://www.nasdaq.com/articles/donaldson-reaches-analyst-target-price-2019-10-28 | nan | nan | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.00, changing hands for $53.20/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets contributing to that average for Donaldson Co. Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $49.00. And then on the other side of the spectrum one analyst has a target as high as $60.00. The standard deviation is $6.082.
But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $53.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Donaldson Co. Inc.:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DCI — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.00, changing hands for $53.20/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $53.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.00, changing hands for $53.20/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $53.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with DCI crossing above that average target price of $53.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.00, changing hands for $53.20/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.00, changing hands for $53.20/share. But the whole reason to look at the average DCI price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DCI crossing above that average target price of $53.00/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | 8ea5497f-c3bc-4c77-82c4-63327c9f02e3 |
709798.0 | 2019-10-09 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2019-10-09 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on DCI — FREE
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on EXPD — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on EXPD — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on EXPD — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. | Get the latest Zacks research report on DCI — FREE Get the latest Zacks research report on EXPD — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. | b8a5934c-0cc2-4350-941a-5e33d7f268e4 |
709799.0 | 2019-09-23 00:00:00 UTC | DCI May 2020 Options Begin Trading | DCI | https://www.nasdaq.com/articles/dci-may-2020-options-begin-trading-2019-09-23 | nan | nan | Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the May 2020 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 235 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new May 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $50.00 strike price has a current bid of $1.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $50.00, but will also collect the premium, putting the cost basis of the shares at $49.00 (before broker commissions). To an investor already interested in purchasing shares of DCI, that could represent an attractive alternative to paying $52.16/share today.
Because the $50.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.00% return on the cash commitment, or 3.11% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Donaldson Co. Inc., and highlighting in green where the $50.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $55.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of DCI stock at the current price level of $52.16/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $55.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.40% if the stock gets called away at the May 2020 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DCI shares really soar, which is why looking at the trailing twelve month trading history for Donaldson Co. Inc., as well as studying the business fundamentals becomes important. Below is a chart showing DCI's trailing twelve month trading history, with the $55.00 strike highlighted in red:
Considering the fact that the $55.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.96% boost of extra return to the investor, or 1.49% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 44%, while the implied volatility in the call contract example is 36%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $52.16) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if DCI shares really soar, which is why looking at the trailing twelve month trading history for Donaldson Co. Inc., as well as studying the business fundamentals becomes important. Below is a chart showing DCI's trailing twelve month trading history, with the $55.00 strike highlighted in red: Considering the fact that the $55.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the May 2020 expiration. | Below is a chart showing DCI's trailing twelve month trading history, with the $55.00 strike highlighted in red: Considering the fact that the $55.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the May 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new May 2020 contracts and identified one put and one call contract of particular interest. | Below is a chart showing DCI's trailing twelve month trading history, with the $55.00 strike highlighted in red: Considering the fact that the $55.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the May 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new May 2020 contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new May 2020 contracts and identified one put and one call contract of particular interest. Below is a chart showing DCI's trailing twelve month trading history, with the $55.00 strike highlighted in red: Considering the fact that the $55.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the May 2020 expiration. | 7522b24a-40e2-4e29-9d70-c275aa484846 |
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