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709800.0 | 2019-09-05 00:00:00 UTC | Donaldson Co (DCI) Q4 2019 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q4-2019-earnings-call-transcript-2019-09-05 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q4 2019 Earnings Call
Sep 5, 2019, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. My name is Denise, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Donaldson's Fiscal 2019 Q4 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. [Operator Instructions] Thank you.
Brad Pogalz, Director of Investor Relations, you may begin your conference.
Brad Pogalz -- Director of Investor Relations
Thanks Denise. Good morning. Thank you for joining Donaldson's fourth quarter and full year 2019earnings 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 fourth quarter performance and an overview of what we are planning for the new fiscal year. During today's call, we will reference non-GAAP metrics such as adjusted earnings. You can find a reconciliation of GAAP to non-GAAP metrics within the schedule 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 set several new records in fiscal 2019. Sales reached an all-time high of $2.85 billion, adjusted earnings per share of $2.21 were 10.5% above last year's record and we invested $0.25 billion in our future with $150 million of capex expenditures and $100 million for the acquisition of BOFA.
On top of investing for the future, we returned nearly $230 million to shareholders through dividends and share repurchase. By these measures, 2019 was a solid year for Donaldson Company. I want to thank our employees for their contribution and continued commitment to our stated purpose of advancing filtration for a cleaner world.
We have a strong plan for 2020, which Scott and I will talk about later. But first, I'll share some thoughts on fourth quarter sales. Total sales of $727 million were in line with our forecast and slightly up from last year. Pricing added 1%, while gains from BOFA and revenue recognition accounting offset a currency headwind of 2%. Results in the quarter highlighted the uneven demand environment and unit sales were down 1% and slightly ahead of projections while industrial sales were slightly below projections with a 3% increase.
In Engine, the forecast favorability came from Aerospace and Defense. Sales were up 4% last quarter with first guest orders driving the growth. As expected, On-Road growth moderated to 2% last quarter, which followed nearly two years of significant growth in the US and China. While heavy duty truck production in the US is likely at peak, our fourth quarter sales grew at a robust rate of 26%. In China, sales were down as we lapped a 600% increase last year. As we have previously discussed, our new programs in China are with local manufacturers that have more order volatility than their western counterparts. So we expect demand fluctuations will be a natural part of our growing -- of growing our share in China.
Off-Road sales were down 10% last quarter, a little better than forecast and reflective of an uneven demand environment. Sales in Europe were the strongest, with continued benefits from pre-buys related to upcoming regulatory changes. In other parts of the world, including the US, large customers appear to be destocking as backlog and orders hovered at two-year lows. Also, within Off-Road fourth quarter sales of razor to sell razor blade products were flat with last year, which is significantly stronger than performance of legacy technology. Innovative products have been and will remain a core part of how we mitigate the natural cyclicality of our Engine markets.
Aftermarket is another mitigating factor. Fourth quarter sales were about flat last year or up 2.5% in constant currency. We continue to see evidence of destocking at large OE customers and lower demand in the construction, agriculture and oil and gas markets were added pressures. The macro headwinds facing aftermarket were offset by a low single digit sales increase for innovative products, which make up about a quarter of total aftermarket. They consistently grow faster than legacy products, making them an important stabilizer for the Company.
Turning to the Industrial segment, fourth quarter sales grew 3.3% or 5.5% in constant currency. Sales within Industrial Filtration Solutions, or IFS, were up 6% last quarter. This translates to an increase of 3% when you exclude the benefit from BOFA and headwind from currency.
Sales last quarter of new dust collectors were below expectations, driving the miss for the segment. Quoting activity is stable, but customers seem reluctant to invest in new systems given macro uncertainty. We are, however, still generating growth with dust collection replacement parts. China was the strongest region last year, where sales were up more than 30%. Although the business there is still small, it's growing rapidly and things like China's Blue Sky initiative create new demand for our products.
Also, within IFS, fourth quarter process filtration sales were up about 10% and that's on top of a 30% increase last year. We're generating new agreements with manufacturers in the food and beverage industry, and our expanded sales force is gaining traction with customers around the world. Based on this momentum, we see another year of strong growth in 2020. As expected, fourth quarter sales in gas turbine systems or GTS were up 7% from last year. The increase was driven by large turbine projects due in part to an easy comparison in the prior year.
I want to pause here and recognize the GTS team. They've done an excellent job right sizing this business over the past few years. Their proactive approach and focus on driving profitable growth turned GTS into a more stable business with greater margin potential. We are also pleased with how we are managing our disk drive business. Secular pressures in that market drove the 9% decline in special applications last quarter, but high standards with disk drive customers spurs advancements in our technical capabilities that can be leveraged elsewhere in the Company. Sharing innovation across our Company is complemented by a strategic approach to managing our portfolio.
I want to highlight a few of our successes from last year. First, our combined Advance and Accelerate portfolio grew twice as fast as the Company. Second, replacement parts were also above the Company average as more than 60% of total sales replacement parts are critical to mitigating the cyclicality of the markets we serve. Third, innovative products remain a low growth driver for both new equipment and replacement parts. Sales of these products in Engine were up about 10% in 2019 and dust flow collectors were up more than 30%. Our diverse portfolio is a core strength and we will leverage that in 2020. We plan to make further investments in our growth businesses, supported by efficiency gains in other parts of the Company. In addition to those gains, we are actively looking for other opportunities to reduce costs and optimize our structure which is standard work for us.
This is what we will control in 2020. We are also paying close attention to the markets, which have changed in the five months since our Investors Day. At that time, we estimated market growth between 1% and 3% supported by stable levels of investment, commodity prices and currency exchange rates. Based on today's estimates, global equipment production will likely be down in the low to mid single digit range, industrial production has come down to the low end of our prior estimate and currency is anything but stable. It's hard to say how much of the change is driven by cautiousness versus real demand erosion, but we do expect the environment will be more challenging than prior year.
With these factors in mind, we are projecting a modest sales increase in 2020, which also means that our 2021 sales will likely be closer to the low end of the range we provided at Investors Day.
I'll now turn the call to Scott for more details on what's included in our 2020 plans. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Tod. Good morning, everyone. In 2019, we focused on supporting our customers, enhancing our global processes and strengthening our foundation for future growth. This year, our focus is navigating an uneven demand environment and driving gross margin improvement. I'll share some thoughts about 2020 after a quick recap of 2019.
Overall, we're pleased to have delivered fourth quarter sales and EPS that were both in line with forecast. In constant currency sales were up 2.3% last quarter and GAAP EPS was $0.45 versus $0.78 last year. The year-over-year change was largely due to tax reform. We had a $0.20 benefit in 2018 compared with a $0.16 charge in 2019. A portion of the charge related to final regulations for the Tax Act, and we also had some strategic restructuring of our legal entities [Phonetic]. With the flexibility enabled by tax reform, we simplified our structure to more easily match global cash with operating units. Please note that the restructuring charge resulted in non-operating expense this year compared with income last year. Excluding non-recurring items, fourth quarter adjusted EPS grew 5% to $0.61 and audit settlement led to a better than expected tax rate, which was offset by a lower than expected margin.
Operating margin was down 50 basis points last quarter, or 40 basis points without the revenue recognition change. Lower incentive compensation contributed to a favorable expense rate, which partially offset the gross margin decline. At a high level, we didn't make as much progress on gross margin as we had expected. Pricing offset higher costs in the quarter, which we feel good about, but we still have work to do on key initiatives, including line transfers take ups within [Phonetic] our manufacturing process and strengthening our part level profitability.
Market level mixed pressure was also one thing that held gross margin back. In some cases, our best performance came from lower margin products like the emission free by and off road or large turbine projects in GTS.
Uneven demand was another headwind. In fact, every quarter in 2019 had a period where demand changed suddenly and dramatically. In some cases, demand stabilized afterwards. In other cases, we had a modest rebound, which is what happened in July. While good news in July wasn't enough to offset the margin shortfall in the quarter, we were encouraged by the trend as July was one of our strongest gross margin performances last year.
Moving off the income statement, our balance sheet showed improvement in working capital last quarter. The leverage ratio is right in our target range and fourth quarter cash conversion was more than 100% on an adjusted basis. For the full year investments in the business and cash returned to shareholders totaled $475 million. Excluding the tax charges, we generated a strong ROIC of more than 18%. We are proud of this performance and we plan to build on this success.
Turning now to our outlook, our fiscal '20 sales are forecast between a 2% decline and a 4% increase. We expect a benefit of 1% from pricing and currency headwinds of 1% to 2%. Engine sales are projected between a 4% decline and a 2% increase. First fit is under most pressure with sales in both on-road and off-road projected down in the mid teens. The on-road decline is primarily driven by the US, where lower heavy duty truck production is widely anticipated. We're also planning that on-road will be down in China. We're still optimistic about the long term, but the process of maturing our relationships with these customers combined with their order volatility makes for a dynamic environment.
In Off-Road, strong comparisons from pre-buyers in 2019 and expected softness in key end markets are driving the decline. We expect aftermarket to provide stability in 2020 with a full-year increase in the low-to-mid single digits. That's above our estimates for equipment utilization driven by share gains from innovative products.
Share -- sales of Aerospace and Defense are planned up in the mid-single digits, reflecting growth in commercial aerospace and ground defense. Industrial sales are projected up between 2% and 8%, which is strong growth for our mixed portfolio. We expect a low-single digit decline in Special Applications, driven by the secular disk drive trend, while growth Venting Solutions provides a partial offset.
For GTS, we are forecasting a low-single digit increase this year. Strong sales in replacement parts should more than offset further contraction of large driven projects, which represent less than 10% of GTS sales.
Sales of IFS are planned up in the mid-to-high single digits, including a small partial year benefit from BOFA. Share gains with dust collection replacement parts should easily offset market-related headwinds for new equipment, and we also expect another strong year with Process Filtration. We continue to expand our LifeTec offering and our larger than ever sales team is building relationships with new food and beverage customers.
For 2020 operating margin, we expect a full-year rate between 13.9% and 14.5%, which is up 30 basis points to 90 basis points from last year. The improvement comes from gross margin and the key activities relate to what I mentioned before, resetting the supply chain, aggressively pursuing cost reductions and enhancing part level profitability. We expect higher expenses will offset a portion of the gross margin improvement. Resetting the annual incentive plans is the biggest headwind, which adds about $10 million of expense and we'll continue to invest in our R&D and our growth businesses. We are planning to minimize the profit impact of these investments with cost reductions in other areas. Beyond what's in plan, we will continue to identify and harvest additional savings around the Company.
For other operating metrics, we plan interest expense of $18 million to $20 million, other income of $4 million to $8 million and a tax rate between 25% and 27%. Just a quick comment on taxes. This year's rate is up from last year as we don't expect much benefit from stock options or audit settlements. We expect capital expenditures to remain elevated at $110 million to $130 million, driven primarily by in-flight capacity projects. We also expect to repurchase 2% of shares again this year. Altogether, we're planning cash conversion of 80% to 95% and GAAP EPS between $2.21 and $2.37.
Overall, we expect typical seasonality in 2020, which means that the second half should generate higher sales, margin and EPS in the first half. That said, there are some nuances, so we want to help with modeling, but I have one request. Please keep in mind that our practice is to limit the detailed guidance for the full year. So my comments will stay at a high level.
For sales, in FY '20 tougher comps combined with the pace of ramp-up for certain initiatives, translates to a first half forecast that's down from 2019. With 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 few things going against it, tougher comps, margin improvement initiatives that doubled over the year and the headwind from incentive compensation kicks in right away in the first quarter.
One more point about modeling. About half the $10 million headwind from compensation expense will go into the corporate and unallocated line, with the balance split between the segments. As I said earlier, our mission this year is to navigate an uneven demand environment and drive gross margin improvement. Our 2020 plans reflect deliberate choices related to growth and investments. For example, the Advance and Accelerate business are receiving the most investment and being tasked with the highest growth. Conversely, areas like our first-fit engine businesses are creating investment capacity with expense savings and enhanced profitability in a challenged environment.
Looking further ahead to fiscal '21, market conditions are the only reason we see ourselves toward the low end of the targets we provided at Investor Day. We see great opportunities in front of us and there are several things that make me confident in our future. We have the right strategy, we have a disciplined approach to managing the portfolio, and we have a powerful and committed base of employees that are acting as a one Donaldson team. I want to thank our employees for the work they did last year and the role they'll play in 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. I think it's clear, but just to reiterate. Our focus this year is navigating uneven demand and improving gross margin. Our global team is aligned around this mission and each area has plans in place to achieve this result, that's our tactical plan. But we will also drive our strategic plan. We are a return-focused company that is committed to long-term profitable growth. So I'll share a few examples of our progress. As always, Donaldson's story begins with innovation. We plan to spend $65 million on R&D this year. That's up 7% from 2019 and another year of developing breakthrough technology. Material science capabilities are the biggest opportunity for us, and the new research facility is under construction. These technologies can be applied in many areas like Process Filtration.
The customers in the food and beverage industry cared deeply about the integrity of their products, which creates an opportunity for us to further leverage our advanced LifeTec filters. Sales of Process Filtration are planned up again this year and we see a long runway ahead. We also leverage new technology in Venting Solutions. These high-tech products protect sensitive devices and parts. And this business is the one place at Donaldson where we are targeting the automotive industry. To that point, we recently launched a vent that protects battery packs, which is critically important in electric vehicles. We see a big opportunity in this new space and we are excited about the role of Venting in our future.
Connected Solutions is another unique offering for us. With remote sensing, we can provide end users with real-time actionable information about their dust collector performance. Based on our research, this level of support is highly valuable, further solidifying our brand as an innovative and customer-focused partner. We are also innovating the way we sell and we are doing that through e-commerce, which we launched nearly two years ago. Since launch, we've invoiced more than $480 million in sales through hundreds of thousands of transactions. There have been millions of sessions from customers around the world and those figures should grow again this year.
For the Engine business, e-commerce gives us an opportunity to better serve existing aftermarket customers. They appreciate the efficiency and we appreciate the speed and cost savings from processing the orders. The same is true with our Industrial customers, with one added benefit. We turned on [Phonetic] the ability to receive guest orders earlier this year, and that can drive incremental revenue from customers we couldn't efficiently serve in the past.
Cultivating innovation is a core principle at Donaldson and we see it everywhere in the Company. With our excellent employees, clear strategic focus, and disciplined approach to investing, I am more confident than ever in our ability to create long-term value for all our stakeholders.
Now, I'll turn the call back to Denise to open the lines for questions. Denise?
Questions and Answers:
Operator
[Operator Instructions] Your first question comes from Nathan Jones with Stifel. Your line is open.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Good morning, everyone.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Nathan.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
I'd like to just start off in IFS, and that part of the guidance. You guys here have got mid-to-high single-digit growth in IFS in 2020, which on the surface looks pretty strong in this kind of macro environment. It looks like 1 point to 2 points from BOFA, probably offset by 1 point to 2 points of currency headwind. So you're still looking at organic growth in that range. I would've thought Industrial capex -- new Industrial capex is probably down in 2020, Industrial production is probably flattish. So maybe you could just bridge that gap for us, how you get to -- what's pretty strong growth there in an environment that's not that strong?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure, this is Tod. So, Nathan I think you have your numbers building that model accurate. BOFA will add $9 million to $10 million of that growth. And then when we really consider the comprehensive portfolio of what's in IFS, we -- while there is that capex portion of our dust collection business or our brand we call Torit, that likely will face some headwinds.
Also in that IFS business, in our Advance and Accelerate portion of the portfolio, is our dust collection aftermarket business, which we've been growing, frankly, at high-single digits for a number of years. And we have good opportunities in taking sharing in China based upon the Blue Sky initiatives there. We have good momentum in Europe. We have multiple growth opportunities across the Americas. And then also don't forget that IFS carries our Process Filtration business, which we've been growing at double digits for multiple years and we look for another year of strong growth. So we roll that all together and IFS has some really strong opportunities for us in fiscal '20.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay. That's very helpful. Second question here, maybe just on the cash conversion. You guys are spending pretty heavily last year, this year, or this coming year on the strategic initiatives. Can you maybe give us an update on how long we should expect this kind of level of capex? When we should return to a more normalized level, what that is and what the long-term free cash flow conversion targets are?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So -- hey Nathan, this is Scott. So it's consistent -- it's still consistent with what we said in Investor Day. So this year, we ended right on our target of $150 million of capex. And we said at Investor Day in the past, that we were expecting higher levels of investment last year and this year. So for this year, we have continued elevated levels of $110 million to $130 million. And the purpose for that is to finish the projects that we have in-flight. So we've been adding significant amounts of capacity and we need to finish these projects and grab the returns to help with the margin improvement. So we feel good about where we're at. We're right on line with the projects and we have to complete those.
Longer term, this spending will come down. We expect a more average or normal range will be 3% of revenues. We said our cash conversions is 80% to 95% this year, and that's with capex of $110 million to $130 million. So we expect over time, that will improve as we come back to a more normalized capex spending of 3% of sales. So we're still at elevated spending with slightly lower cash conversion and that will improve as we bring down the capex spending.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
And you would anticipate $100 million plus long term in terms of conversion?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, I mean, $90 million to $110 million, depending on the revenue growth and what other things we're doing. But that's a reasonable range.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay, and then just on gross margins. You guys called out gross margins as the big driver of 30 basis points to 90 basis points of margin expansion. And clearly, you'd be growing margins here outside of any kind of volume leverage. Can you maybe talk about the biggest initiatives that you guys have got -- that are going on to drive that gross margin improvement? What you're looking at in terms of price cost tailwinds, I assume that will be in fiscal 2020, and just any information you can give us on what's driving that margin improvement?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So, as I said, we were disappointed in our margin improvement for this year. We did not accomplish everything that we wanted to, and that's why our margins ended up a bit short. But the projects are in-flight and that's what that capex relates to. So, number one is, complete the projects we have in-flight and drive the returns that we expected out of those. As we complete those projects, we will begin to normalize our supply chain and improve our inbound freight and focus a lot more on regaining efficiencies with cost takeout and allow our teams to spend more time on raw materials. We have to work on our product-level pricing to improve products with low-margin parts. And we're going -- we had a 1% increase for pricing this year that will drive any costs associated with raw material increases to more of a neutral position.
In terms of media, we are expecting slight increases in media costs this year, and that's one of the reasons that we have to continue to increase our prices to offset the raw material impacts. That's kind of a -- overall summary on all the things that are going into margin, and why we believe, we have great opportunities to improve our gross margins going forward. And we are going to drive those projects to completion.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
And maybe just to add a little bit of color here, Nathan, is that overall the organization is really focused on and every region has specific targets, every business is focused. They understand this is the number one problem in the corporation across the entire leadership. This is really, from an operational standpoint of view, our focal area.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
That's helpful. I'll pass it on. Thank you very much.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thank you.
Operator
Your next question comes from Brian Drab with William Blair. Your line is open.
Brian Drab -- William Blair & Co. -- Analyst
Hi, good morning. Thanks for taking my question.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi, Brian.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Hi, Brian.
Brian Drab -- William Blair & Co. -- Analyst
At the Analyst Meeting, you talked about the $100 million target for cost cutting and clearly discussion of cost cutting so far today on this call too. I'm just wondering, do you have maybe a little more urgency around that $100 million to maybe pull some of that forward, accelerate that schedule somewhat? And in the -- I guess, it's about five months only since the Analyst Day, but where are we on that $100 million program at this point?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure, Brian. This is Tod. So we still feel strongly that $100 million is a proper target. We embrace that challenge. We have specific plans across our operation schemes. Now, the lead time of some of those projects, we had urgency even at Investor Day relative to the $100 million. And so, the opportunity to accelerate that from what we had thought is really not there. These projects are multiple quarter projects that we have in-flight that we're really pressing hard on in order to bring forward. But it's still the target that we covered, it's still being executed on, but I do not see opportunity to really accelerate that.
Brian Drab -- William Blair & Co. -- Analyst
Okay. Okay, and then given the -- not a huge change, but change in trajectory in the top line versus what we discussed at the Analyst Day over the next few years, is there any change in your plans for capacity expansion or reducing capacity potentially, given that change in trajectory?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah. Brian, Tod again. So this is what we talked about in Investor Day as well. We have a multiple year, five-year plan within our operations teams. And what we did in order to expand the capacity is we pulled forward by year, sometimes as much as three years, many of those two years ahead in -- within that five year plan, when we expanded capacity. So we're really just executing what were our plans to begin with, and so consequently, we really feel good about where we are. And frankly, that allows us to now really work hard at normalizing our internal supply chain for our customer base. And that's what our focus is today. We're comfortable with where we are on capacity and we'll just continue to execute that plan.
Brian Drab -- William Blair & Co. -- Analyst
Okay, thanks. And then just one last one, kind of along the same lines. Just wondering, as these end markets are challenged at the moment or at least many of them are, is there any way that you can accelerate getting some of these new end markets up and running, especially chemical, electronics, medical, pharmaceuticals, some of these things that you talked about at the Analyst Day to offset some of the pressure?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So, we're clearly pressing hard in the Process Filtration, but also with the markets that we talked about and we highlighted this at Investor Day as well. The sales cycle on those, in order that we have validation, are often multiple year type of activities. We have Process Filtration well in-flight, people are pressing hard. But we're as much as two years to three years into that cycle already, which is the reason why we're seeing some momentum and doing quite a nice job. The others are still going to take some time. And if you remember, on that whole medical opportunity, we still need to advance our material science opportunities and we'll continue to do so.
The other one we didn't talk so detailed about in our Investor Day is our Venting products. And so Venting is a good opportunity and we're pressing hard on that, which is the reason why in my prepared remarks, I really highlight about our opportunities in automotive, in supporting electric-based vehicles within Venting. So that that's a good opportunity that we'll be pressing harder in order to grow as quickly as possible.
Brian Drab -- William Blair & Co. -- Analyst
Got it. And just quickly, Tod, can you make any comment on August versus what you [Technical Issues] in terms of overall demand?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Everything we've experienced in August is baked into the guidance that we gave for the full year.
Brian Drab -- William Blair & Co. -- Analyst
I thought that would be what you might say. Thanks very much.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Brian.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Brian.
Brian Drab -- William Blair & Co. -- Analyst
Yeah.
Operator
Your next question comes from Richard Eastman with Barrett. Your line is open.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Yes. Good morning. Thank you. Thank you for the questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Richard.
Richard Eastman -- Robert W. Baird & Company -- Analyst
If we could just circle back for a minute on the gross margin, can I just ask from a -- you gave some decent guide on the op margin improvement, 30 basis points to 90 basis points. You did mention OpEx will be up some here, mainly incentive comp. But is the target -- what would be the target for the gross margin improvement? What would be that range? Would it be 100 basis points to -- maybe you could just lay that out? And I'm curious how much mix should be beneficial for you this year.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, I mean we -- this is Scott, Rick. We factored certainly mix into the guide and we are working to grow our Advance and Accelerate and grow higher margin products, right, which, you can mix the Company up by investing in higher margin products. And that's something we're always going to be working to do with our Advance and Accelerate category. So that helps with mix, and that's one of the ways we're driving our gross margins up. So we've said we're going to be up quite a bit in op margin and that's mainly driven by gross margin for the most part, with just a little bit of a headwind from our operating expenses. So all the improvement is really coming solely from gross margins.
And it -- all the things that we've talked about with Nathan's questions and on my script, and we have to finish those projects to improve our margins. But gross margins are the key for this year and the operating margin improvement is going to be driven solely by gross margin improvements. And part of that comes from mix and part of that comes from all the other things I've referred to with regard to improving our margins.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. So might we expect 100 to 125 of gross margin improvement basis points?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Well, it's -- 60 basis points of operating improvement is the midpoint for margin, and that all comes from gross margin. It's a little bit of a headwind from the expenses. So all of that operating margin comes through gross margin improvements.
Brad Pogalz -- Director of Investor Relations
Yeah. Rick, this is Brad. I would pull on that. That's the thing to keep in mind. If you just pick something within the range and for the exercise it's 60 basis point, assume that the incremental incentive compensation, the math on $10 million just gets into the neighborhood of 30 basis points. So we've got to offset that right away. So that's kind of where you get to it. You start talking way into a 100 plus basis points, and that's just above where we'd expect to end the year. But we certainly expect strong improvement.
Richard Eastman -- Robert W. Baird & Company -- Analyst
And then one would expect -- again, given how this year lays out relative to the comps, relative to the deceleration we're seeing in some of the engine markets to be sure, one might think that, again, that maybe the first half revenue is down. We still may see first half gross margin, the financial metric still across the P&L are probably still down in the first half, and then the improvement for the full year that you're laying out is really going to be second half driven when the sales growth kind of materializes against the easier comps. Is that how the P&L should shake out first half, second half?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, I think that's a fair characterization, Rick, especially when you start to look at our gross margin projects -- improvement projects that are in-flight. They're more back-half related, based upon we have to finish up those projects in order to drive what we would expect to take place. So, yes, clearly it -- that correction if you will, ramps up as we progress through the year.
Brad Pogalz -- Director of Investor Relations
And this is Brad. I'll add to that. Scott touched on this. But keep in mind, the incentive comp headwind starts August 1, the first day of the fiscal year.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. And then just as a quick follow-up here maybe. On the Industrial side of the business, it's good to see finally, the gas turbine forecast maybe being up low-single digits. We should probably presume then the equipment side of that business is kind of based out, it's probably a little north of zero. But that -- but the big risk there around the equipment side seems to be washed out of the numbers. Now we're kind of talking about replacement parts. Is that accurate there that the risk of gas turbine kind of bottoming here is finally -- maybe finally in the rearview mirror?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi Rick, Tod. Yes, that's absolutely right. Your characterization is fair. We look at our large turbine projects as being somewhere between 0% and 5%. So it'll be mid-single digits and that's this year. So yeah, it's washed out. We've been highlighting that in the last couple of quarters, saying that it's less of an overall risk to the corporation and that really aligns well with our long-term strategy whereby the growth of the business will come from aftermarket or share gains within aftermarket. But then also keep in mind that we have a small turbine project base there, things such as oil and gas pipelines, offshore oil rigs, things like that. And that we -- is essentially the bulk of our project base business, and we call it small turbine as opposed to making projects for the power grid.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. Because overall, your sales guide for the full -- for fiscal '20 for the full year, it looks like you've kind of stressed-test [Phonetic] this pretty well this early in the fiscal year with the guide. And maybe the risk to the low end, the minus 2% revenue is kind of concentrated down in the Industrial sales and maybe macro risk. Can I summarize it that way?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
I'd say, the risk would be, yeah, more macro geopolitical of what's going to take place. The risks of uncertainties that we're all experiencing in our daily lives now, and yeah, I think that's fair to characterize and wrap up as a risk.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Very good. Okay. Thank you.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thank you.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Rick.
Operator
Your next question comes from Laurence Alexander with Jefferies. Your line is open.
Laurence Alexander -- Jefferies -- Analyst
Good morning. I guess, two quick ones. Can you give an update on how your thinking has evolved around the M&A opportunities, both valuations that you're seeing and the areas that might be more likely over the next year or so if the current environment continues? And [Speech Overlap] on the Chinese side, could you speak a little bit about what you're seeing in the aftermarket there, and what you now see as the timeline before the aftermarket really kicks in as a growth driver for your China business?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Hi, Laurence. This is Tod. Let me take the M&A portion first. So M&A continues to be part of our long-term strategy. Nothing has appreciably changed from a market standpoint view. We still work it as part of our normal base processes. We would suggest that we still have a robust pipeline. It's very strategic. We remain a disciplined buyer, so our behaviors all remain intact and we have seen no appreciable change in the overall M&A markets at this point.
Longer term for China, relative to the aftermarket, we have some momentum, particularly on the industrial side within China because of the Blue Sky initiative in our IFS-based businesses. And so we are starting to see the aftermarket portion of that already come through. And that is one of the reasons why we were to [Phonetic] guess our IFS has a good growth opportunity and that is baked into our fiscal '20 guide that you have received today. So we think that China had some momentum already that we are seeing in the aftermarket, and we're really quite happy with that.
Operator
Okay. And there are no further questions in queue at this time. I'll 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. I want to thank everyone listening for your time and interest in Donaldson Company. Have a great rest of the week. 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, Chief Financial Officer
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Brian Drab -- William Blair & Co. -- Analyst
Richard Eastman -- Robert W. Baird & Company -- Analyst
Laurence Alexander -- Jefferies -- 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) Q4 2019 Earnings Call Sep 5, 2019, 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, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst Laurence Alexander -- Jefferies -- 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. Pricing offset higher costs in the quarter, which we feel good about, but we still have work to do on key initiatives, including line transfers take ups within [Phonetic] our manufacturing process and strengthening our part level profitability. | 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, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst Laurence Alexander -- Jefferies -- 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 2019 Earnings Call Sep 5, 2019, 10:00 a.m. Thank you for joining Donaldson's fourth quarter and full year 2019earnings 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, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst Laurence Alexander -- Jefferies -- 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 2019 Earnings Call Sep 5, 2019, 10:00 a.m. And what we did in order to expand the capacity is we pulled forward by year, sometimes as much as three years, many of those two years ahead in -- within that five year plan, when we expanded capacity. | 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, Chief Financial Officer Nathan Jones -- Stifel, Nicolaus & Company -- Analyst Brian Drab -- William Blair & Co. -- Analyst Richard Eastman -- Robert W. Baird & Company -- Analyst Laurence Alexander -- Jefferies -- 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 2019 Earnings Call Sep 5, 2019, 10:00 a.m. Thank you for joining Donaldson's fourth quarter and full year 2019earnings conference call With me today are Tod Carpenter, Chairman, CEO and President of Donaldson and Scott Robinson, Chief Financial Officer. | a06d6cde-b1b3-4c3e-b349-d80445ee9045 |
709801.0 | 2019-09-05 00:00:00 UTC | Donaldson Sees Uneven Demand in Fiscal 2020 | DCI | https://www.nasdaq.com/articles/donaldson-sees-uneven-demand-in-fiscal-2020-2019-09-05 | nan | nan | Filtration systems and replacement parts conglomerate Donaldson Company (NYSE: DCI) released fiscal fourth-quarter 2019 earnings before markets opened for trading on Thursday. The global industrial concern, which manufactures its products at 43 plants worldwide, coupled a flattish top line in the fourth quarter with operating income that trailed the prior-year period by a few percentage points. A large swing in income tax expense dented net earnings, however. Let's walk through essential details from the last three months, and discuss management's rather cautious outlook on the coming fiscal year.
Note that all comparative numbers in this article are presented against those of the prior-year quarter.
The raw numbers
Data source: Donaldson Company. EPS = earnings per share.
What happened with Donaldson this quarter?
The organization realized roughly 1 percentage point of pricing power this quarter and added another 1.3% to its top line through its December 2018 acquisition of fume extraction systems manufacturer BOFA International. These positive sales factors were offset by 2 percentage points of foreign currency translation, resulting in the meager revenue advance over the fourth quarter of 2018.
Net revenue in Donaldson's engine product segment dipped by 1.1%, as aftermarket sales (the company's largest business line) improved by just 0.3%, to $335.3 million. Off-road sales decreased by 10.1% to $75.1 million due to weaker domestic results, partially mitigated by strong international sales. On-road product sales rose by 1.5% to $44.2 million. The aerospace and defense business achieved a 4% increase in sales, to $32.1 million.
The company's industrial products segment exhibited a bit more momentum, as total net revenue improved by 3.3% to $240.2 million. Industrial filtration solutions sales notched a 6.2% gain to $172.5 million, while gas turbine systems sales rose nearly 7% to $25.8 million. Special applications dragged on the segment's top line, however, as computer disk drive filtration product sales slipped roughly 9% to $41.9 million.
Unfavorable product mix, higher supply chain costs, and rising raw materials costs pushed gross margin lower by 140 basis points to 33.5%.
Operating income declined by 3.5% to $104.4 million. The large disparity in net earnings between periods, however, as seen in the table above, is due primarily to income tax expense adjustments related to final clarification of regulations from the 2017 Tax Cut and Jobs Act. Donaldson recorded $40.7 million in income tax expense this quarter, against just $1.1 million in the fourth quarter of fiscal 2018.
The company pointed out that share repurchases of $24.7 million during the quarter brought its full-year share buyback tally to $129.2 million, equaling 2% of outstanding shares repurchased this year.
Image source: Getty Images.
Management's perspective
Having a finger on the pulse of global macroeconomic conditions is vital for manufacturers with international supply chains, as well as those seeking to invest in quality stocks of multinational companies over a moderate-to-long time frame. In Donaldson's earnings press release, CEO Tod Carpenter communicated the company's wary outlook on product demand in the next 12-month period. Carpenter did also note that Donaldson still expects to repeat its achievement of record bottom-line results in fiscal 2020:
Our fiscal 2020 plan reflects focused portfolio management in an uneven demand environment. It is likely that uncertainty related to global trade and the political environment will keep our customers cautious, and some of our engine-related end markets are nearing the peak of their economic cycle. As these factors affect demand, our innovative products with recurring revenue, combined with disciplined expense planning, give us greater stability and flexibility as we remain focused on the future. We are making incremental investments to drive our strategic priorities in 2020, and we are aggressively pursuing gross margin improvement opportunities. Our company is aligned on our strategic and operational objectives, and we are excited about our path to delivering another year of record profit.
Looking forward
Donaldson issued full-year fiscal 2020 guidance alongside earnings on Thursday. For the coming year, the organization projects sales growth of between -2% and 4%. Operating margin is expected to land between 13.9% and 14.5%, an improvement against the 13.6% mark recorded in fiscal 2019. Management anticipates diluted earnings per share of $2.21 to $2.37, which will represent a 12% advance in profit over the prior year at the midpoint of the range. Shareholders seemed amenable to the financial projections despite management's caution around next year's sales demand: Shares rose roughly 4% in early trading Thursday morning.
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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. | Filtration systems and replacement parts conglomerate Donaldson Company (NYSE: DCI) released fiscal fourth-quarter 2019 earnings before markets opened for trading on Thursday. The global industrial concern, which manufactures its products at 43 plants worldwide, coupled a flattish top line in the fourth quarter with operating income that trailed the prior-year period by a few percentage points. The organization realized roughly 1 percentage point of pricing power this quarter and added another 1.3% to its top line through its December 2018 acquisition of fume extraction systems manufacturer BOFA International. | Filtration systems and replacement parts conglomerate Donaldson Company (NYSE: DCI) released fiscal fourth-quarter 2019 earnings before markets opened for trading on Thursday. Donaldson recorded $40.7 million in income tax expense this quarter, against just $1.1 million in the fourth quarter of fiscal 2018. Carpenter did also note that Donaldson still expects to repeat its achievement of record bottom-line results in fiscal 2020: Our fiscal 2020 plan reflects focused portfolio management in an uneven demand environment. | Filtration systems and replacement parts conglomerate Donaldson Company (NYSE: DCI) released fiscal fourth-quarter 2019 earnings before markets opened for trading on Thursday. Net revenue in Donaldson's engine product segment dipped by 1.1%, as aftermarket sales (the company's largest business line) improved by just 0.3%, to $335.3 million. Donaldson recorded $40.7 million in income tax expense this quarter, against just $1.1 million in the fourth quarter of fiscal 2018. | Filtration systems and replacement parts conglomerate Donaldson Company (NYSE: DCI) released fiscal fourth-quarter 2019 earnings before markets opened for trading on Thursday. On-road product sales rose by 1.5% to $44.2 million. Industrial filtration solutions sales notched a 6.2% gain to $172.5 million, while gas turbine systems sales rose nearly 7% to $25.8 million. | 5543a45f-30a1-46a5-9fc3-57a507e1f0c3 |
709802.0 | 2019-09-05 00:00:00 UTC | Donaldson Issues FY20 Guidance - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-issues-fy20-guidance-quick-facts-2019-09-05 | nan | nan | (RTTNews) - Donaldson Company, Inc. (DCI) announced the company expects fiscal 2020 GAAP EPS between $2.21 and $2.37. Sales are projected in a range between a 2 percent decline and a 4 percent increase. Engine sales are projected in a range between a 4 percent decline and a 2 percent increase. Donaldson expects to repurchase approximately 2 percent of its outstanding shares during fiscal 2020.
"Our fiscal 2020 plan reflects focused portfolio management in an uneven demand environment. It is likely that uncertainty related to global trade and the political environment will keep our customers cautious, and some of our engine-related end markets are nearing the peak of their economic cycle," said Tod Carpenter, CEO.
For the fourth-quarter, adjusted earnings per share was $0.61, an increase of 5.2 percent from a year ago. Fourth-quarter sales increased 0.3 percent to $726.9 million from $724.7 million, prior year. Sales of Engine Products decreased 1.1 percent from last year on a reported basis, and the sales increased 0.9 percent when excluding the negative impact from currency translation.
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) announced the company expects fiscal 2020 GAAP EPS between $2.21 and $2.37. "Our fiscal 2020 plan reflects focused portfolio management in an uneven demand environment. It is likely that uncertainty related to global trade and the political environment will keep our customers cautious, and some of our engine-related end markets are nearing the peak of their economic cycle," said Tod Carpenter, CEO. | (RTTNews) - Donaldson Company, Inc. (DCI) announced the company expects fiscal 2020 GAAP EPS between $2.21 and $2.37. Sales are projected in a range between a 2 percent decline and a 4 percent increase. Engine sales are projected in a range between a 4 percent decline and a 2 percent increase. | (RTTNews) - Donaldson Company, Inc. (DCI) announced the company expects fiscal 2020 GAAP EPS between $2.21 and $2.37. Sales are projected in a range between a 2 percent decline and a 4 percent increase. Engine sales are projected in a range between a 4 percent decline and a 2 percent increase. | (RTTNews) - Donaldson Company, Inc. (DCI) announced the company expects fiscal 2020 GAAP EPS between $2.21 and $2.37. Sales are projected in a range between a 2 percent decline and a 4 percent increase. Donaldson expects to repurchase approximately 2 percent of its outstanding shares during fiscal 2020. | 97cab903-07c8-4217-947c-1010567fe0bc |
709803.0 | 2019-08-26 00:00:00 UTC | How The Parts Add Up: OMOM Headed For $31 | DCI | https://www.nasdaq.com/articles/how-the-parts-add-up%3A-omom-headed-for-%2431-2019-08-26 | 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 Russell 1000—Momentum Factor ETF (Symbol: OMOM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $31.39 per unit.
With OMOM trading at a recent price near $28.20 per unit, that means that analysts see 11.34% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of OMOM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), CenterPoint Energy, Inc (Symbol: CNP), and Kinder Morgan Inc. (Symbol: KMI). Although DCI has traded at a recent price of $45.98/share, the average analyst target is 13.82% higher at $52.33/share. Similarly, CNP has 13.57% upside from the recent share price of $27.42 if the average analyst target price of $31.14/share is reached, and analysts on average are expecting KMI to reach a target price of $21.91/share, which is 11.95% above the recent price of $19.57. Below is a twelve month price history chart comparing the stock performance of DCI, CNP, and KMI:
Below is a summary table of the current analyst target prices discussed above:
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 $45.98/share, the average analyst target is 13.82% higher at $52.33/share. Below is a twelve month price history chart comparing the stock performance of DCI, CNP, and KMI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of OMOM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), CenterPoint Energy, Inc (Symbol: CNP), and Kinder Morgan Inc. (Symbol: KMI). | Three of OMOM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), CenterPoint Energy, Inc (Symbol: CNP), and Kinder Morgan Inc. (Symbol: KMI). Although DCI has traded at a recent price of $45.98/share, the average analyst target is 13.82% higher at $52.33/share. Below is a twelve month price history chart comparing the stock performance of DCI, CNP, and KMI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Below is a twelve month price history chart comparing the stock performance of DCI, CNP, and KMI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of OMOM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), CenterPoint Energy, Inc (Symbol: CNP), and Kinder Morgan Inc. (Symbol: KMI). Although DCI has traded at a recent price of $45.98/share, the average analyst target is 13.82% higher at $52.33/share. | Although DCI has traded at a recent price of $45.98/share, the average analyst target is 13.82% higher at $52.33/share. Three of OMOM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), CenterPoint Energy, Inc (Symbol: CNP), and Kinder Morgan Inc. (Symbol: KMI). Below is a twelve month price history chart comparing the stock performance of DCI, CNP, and KMI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | cecd2aec-259d-49a6-acbd-ee58c15535a0 |
709804.0 | 2019-08-19 00:00:00 UTC | DCI Makes Bullish Cross Above Critical Moving Average | DCI | https://www.nasdaq.com/articles/dci-makes-bullish-cross-above-critical-moving-average-2019-08-19 | nan | nan | In trading on Monday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.68, changing hands as high as $49.97 per share. Donaldson Co. Inc. shares are currently trading up about 1.2% 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $49.72.
Click here to find out which 9 other dividend stocks recently crossed above 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 Monday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.68, changing hands as high as $49.97 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $49.72. Click here to find out which 9 other dividend stocks recently crossed above 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 Monday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.68, changing hands as high as $49.97 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $49.72. Click here to find out which 9 other dividend stocks recently crossed above 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 Monday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.68, changing hands as high as $49.97 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $49.72. Click here to find out which 9 other dividend stocks recently crossed above 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 Monday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.68, changing hands as high as $49.97 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $49.72. Donaldson Co. Inc. shares are currently trading up about 1.2% on the day. | e47b40a1-e7b5-43a4-8593-3fead8dc7d01 |
709805.0 | 2019-08-15 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-2019-08-15 | 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.
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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 SON — 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. 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 SON — 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. 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 SON — 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. 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 SON — 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. 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. | f337f434-cfed-481d-89fc-fd02ec70f169 |
709806.0 | 2019-08-09 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for August 12, 2019 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-dci-ex-dividend-date-scheduled-for-august-12-2019-2019-08-09 | nan | nan | Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 12, 2019. A cash dividend payment of $0.21 per share is scheduled to be paid on August 29, 2019. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 10.53% increase over prior dividend payment. At the current stock price of $48.94, the dividend yield is 1.72%.
The previous trading day's last sale of DCI was $48.94, representing a -17.65% decrease from the 52 week high of $59.43 and a 21.53% increase over the 52 week low of $40.27.
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 $2.38. Zacks Investment Research reports DCI's forecasted earnings growth in 2019 as 10.58%, compared to an industry average of 35.2%.
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 2019 as 10.58%, compared to an industry average of 35.2%. 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 12, 2019. DCI's current earnings per share, an indicator of a company's profitability, is $2.38. 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 $48.94, representing a -17.65% decrease from the 52 week high of $59.43 and a 21.53% increase over the 52 week low of $40.27. 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 $2.38. Donaldson Company, Inc. (DCI) will begin trading ex-dividend on August 12, 2019. | af105350-6b4c-409d-8f94-19f0beca3661 |
709807.0 | 2019-07-24 00:00:00 UTC | DCI Crosses Above Key Moving Average Level | DCI | https://www.nasdaq.com/articles/dci-crosses-above-key-moving-average-level-2019-07-24 | nan | nan | In trading on Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $50.08, changing hands as high as $50.33 per share. Donaldson Co. Inc. shares are currently trading up about 1.4% 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.31.
Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $50.08, changing hands as high as $50.33 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.31. Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $50.08, changing hands as high as $50.33 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.31. Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $50.08, changing hands as high as $50.33 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.31. Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $50.08, changing hands as high as $50.33 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.31. Donaldson Co. Inc. shares are currently trading up about 1.4% on the day. | 139cf421-43bb-4a1c-b4f9-fbd40050659c |
709808.0 | 2019-06-28 00:00:00 UTC | DCI Crosses Above Key Moving Average Level | DCI | https://www.nasdaq.com/articles/dci-crosses-above-key-moving-average-level-2019-06-28 | nan | nan | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $50.85, changing hands as high as $51.23 per share. Donaldson Co. Inc. shares are currently trading up about 0.3% 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.84.
Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $50.85, changing hands as high as $51.23 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.84. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $50.85, changing hands as high as $51.23 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.84. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $50.85, changing hands as high as $51.23 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.84. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $50.85, changing hands as high as $51.23 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.84. Donaldson Co. Inc. shares are currently trading up about 0.3% on the day. | e27a8789-9375-43b1-a1d4-1c3f89c3f5cc |
709809.0 | 2019-06-24 00:00:00 UTC | Interesting DCI Put And Call Options For February 2020 | DCI | https://www.nasdaq.com/articles/interesting-dci-put-and-call-options-for-february-2020-2019-06-24 | nan | nan | Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options become available today, for the February 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 February 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $45.00 strike price has a current bid of 5 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $45.00, but will also collect the premium, putting the cost basis of the shares at $44.95 (before broker commissions). To an investor already interested in purchasing shares of DCI, that could represent an attractive alternative to paying $49.30/share today.
Because the $45.00 strike represents an approximate 9% 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 71%. 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 0.11% return on the cash commitment, or 0.17% 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 $45.00 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 $1.00. If an investor was to purchase shares of DCI stock at the current price level of $49.30/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 3.45% if the stock gets called away at the February 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 $50.00 strike highlighted in red:
Considering the fact that the $50.00 strike represents an approximate 1% 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 48%. 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 2.03% boost of extra return to the investor, or 3.06% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 47%, while the implied volatility in the call contract example is 37%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $49.30) to be 26%. 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 1% 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 February 2020 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 1% 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 February 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new February 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 $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 1% 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 February 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DCI options chain for the new February 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 February 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 $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 1% 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 February 2020 expiration. | 7184a5bf-2a48-43ac-aff3-c65523e57a95 |
709810.0 | 2019-06-04 00:00:00 UTC | Donaldson Co (DCI) Q3 2019 Earnings Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q3-2019-earnings-call-transcript-2019-06-04 | nan | nan | Image source: The Motley Fool.
Donaldson Co (NYSE: DCI)
Q3 2019 Earnings Call
Jun 4, 2019, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, my name is Adam, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Donaldson's Q3 Fiscal 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise and after the speakers' remarks, there will be a question-and-answer session. (Operator Instructions). Thank you.
Brad Pogalz, Director, Investor Relations and Corporate Communications, you may begin your conference.
Brad Pogalz -- Director, Investor Relations
Thanks Adam. Good morning. Thank you for joining Donaldson's third quarter 2019earnings 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 third quarter performance and an update on 2019.
During today's call, we will reference non-GAAP metrics, such as adjusted earnings. You can find 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 also described in our press release and SEC filings.
With that, I'll now turn the call over to Tod Carpenter. Tod?
Tod Carpenter -- Chairman, President & Chief Executive officer
Thanks Brad. Good morning everyone. Last quarter, we had strong growth in our Advance and Accelerate portfolio. We saw improvement in our gross margin trend, and we made progress on our operational efficiency efforts. These accomplishments are largely within our control.
On the other hand, macro factors including political and economic uncertainty drove a notable shift in our customers' behaviors toward the end of the quarter. In April, for some of our large OEs and within our dust collection business, backlog of orders abruptly fell to a two-year low. Within our prior outlook, we attempted to account for market volatility with a wider than usual guidance range which Scott discussed at our Investor Day.
However, the acuteness of April suggests, it was not wide enough. While the revised forecast is disappointing, there are several bright spots in our business. So let me get into the quarter.
Third quarter sales grew 1.8% or 5.9% without currency. Benefits from pricing added 1.5% and BOFA was another 1.4%. Engine sales were up 3.6% in third quarter or 7.7% without FX. We also realized 1.7% from pricing, which is our strongest quarterly contribution this year. Our off-road business continues to face mixed conditions. Excluding currency, third quarter sales of off-road were slightly down, reflecting de-stocking at large US customers combined with the impact of political uncertainty in Latin America.
These pressures were partially offset by pre-buys for an upcoming regulatory change in Europe and share gains in China with local manufacturers of off-road equipment. We were encouraged by off-road sales of razor-to-sell razor-blade products, which grew ten points faster than legacy products last quarter. Fuel filter sales led the portfolio with third quarter growth in the high teens.
Program wins with fuel are nearly all incremental to us demonstrating our success in penetrating the first-fit market with our proprietary Synteq XP media. In on-road, sales were up 11% last quarter including above market growth of 30% in the US as Class 8 truck production remains elevated.
Third quarter sales of on-road in China were down nearly 20% in local currency. Significant order volatility from Chinese customers combined with a strong comparison last year drove the decline. The order volatility is not new or unexpected, so we remain focused on deepening our relationships to drive profitable growth in China's massive market.
Turning to aftermarket, local currency sales were up 8% last quarter. Third quarter was the 13th in a row where both the OE and independent channels were up from the prior year. Within the independent channel, mining and energy markets are providing some support, but economic pressures across Latin America and other developing regions are headwinds.
In the OE channel, a sudden drop mid-April at a small number of large customers indicates to us that there was some destocking. It's unclear if demand pull through has changed, so we're watching orders closely. Third quarter sales of innovative products in the OE channel tell us our strategy to gain share is working. These products grew 12 points faster than legacy products last quarter, due in part to PowerCore. Third quarter PowerCore sales in aftermarket grew in the mid-teens to a record level. That's an important point. PowerCore has been around nearly for 20 years and this industry changing product is still driving strong growth.
By expanding our portfolio of razor-to-sell razor-blade products, we have won share in the first fit market and then created a stable and profitable stream of recurring revenue. Innovative products have significantly contributed to success in recent years and they'll play a critical role in our future.
Rounding out engine, aerospace and defense sales were up 20% last quarter. Order timing and a soft comparison last year were the primary drivers. Turning to the Industrial segment, third quarter sales declined 1.9%. The impact from currency was offset by benefits from BOFA and pricing. Third quarter sales of Industrial Filtration Solutions or IFS grew 2%. Excluding currency and BOFA, sales were roughly flat with last year, but there was some variability within the business.
Starting with dust collection, local currency sales of new equipment declined in the high single-digits last quarter. We are still quoting new projects, but customers are increasingly reluctant to make the investment.
A notable exception is Latin America where our small base of new equipment sales nearly doubled in local currency. We are gaining share with a large global manufacturer as we evolve our customer engagement model. By leveraging our depth of knowledge and breadth of offering, we can help these customers improve outcomes at their facilities around the world, creating new value for them and us.
We also have momentum in dust collection replacement parts. We are investing in people and tools and we are seeing evidence of progress. For example, China sales were up more than 50% in local currency. With growing share and benefits from China's Blue Sky initiative, we expect to take the small business and grow it rapidly over time.
Additionally, replacement parts for dust collectors in the US, which is our most mature market grew in the mid single digits last quarter. Also in US, we booked our first guest orders through e-commerce last quarter. We recently enabled this feature and while the dollar amount is still small, we believe it will drive profitable growth as we make it easier for potential customers to engage with us.
In process filtration, local currency sales were up nearly 20% and that's on top of 20% growth last year. To drive process filtration we have significantly increased the sales team and we are adding new production capacity. These product sell into the food and beverage industry at higher margins than our corporate average, helping to bolster our profitability. As expected, sales of Gas Turbine products or GTS were down 12% in local currency, last quarter.
The decline was due to lower sales to new projects, which we partially offset by significant growth in replacement parts. We are confident in our GTS positioning. Our disciplined management of the large turbine business combined with our focus on growing the replacement parts sales is driving year-over-year improvement in profit on a dollar and rate basis.
Results in Special Applications also match our forecast. Excluding FX, sales declined about 3% driven by lower sales of Disk Drive filters that were partially offset by growth across the rest of the portfolio.
Before turning the call over to Scott, I want to summarize some of the successes we saw last quarter. First, our strategic investments to drive the Advance and Accelerate portfolio are getting results. Local currency sales of this portfolio were up in the high single digits last quarter compared with a low single-digit increase for the balance of the Company.
Second, our razor-to-sell razor-blade model works. Innovative products in engine were up in the low double-digits and down flow evolution offering in dust collection was up in the mid-single digits. Third, our focus on replacement parts drives growth and adds stability. Replacement parts sales had a local currency increase of more than 10% last quarter versus a modest decline in sales of first-fit and new equipment.
These products make up more than 60% of total revenue and they help to mitigate the impact of cyclicality in some of our businesses.
With that, I'll now turn the call over to Scott. Scott?
Scott Robinson -- Senior Vice President & Chief Financial Officer
Thanks, Tod. Good morning, everyone. Sales grew 2% last quarter, including a 4% headwind from currency. As expected, the impact from FX was higher than what we've seen so far this year and we do think the pressure will lessen in fourth quarter. That dynamic was one reason we modeled the sequential step up in Q3 (ph) to be more muted than Q4, which is consistent with what I said at Investor Day. Of course, the sharp drop in backlogs late in the third quarter changes expectations, I'll discuss that later.
We generated EPS of $0.58 in the third quarter, which is up 9% from last year due primarily to taxes. Benefits from a lower corporate rate in the US combined with stock option activity and other discrete items resulted in a tax rate nearly five points for the last year. Based on Q3, our full year tax rate is now forecast between 24.4% and 25.4%.
In terms of business performance, third quarter operating margin declined 20 basis points to 14%. I want to remind everyone that we adopted the revenue recognition accounting standard in fiscal '19, which effectively diluted third quarter operating margin by 10 basis points.
Gross margin was also impacted by revenue recognition. Third quarter gross margin declined 40 basis points to 33.8%, with half of the decline coming from the accounting change. We are still experiencing higher raw material and supply chain costs, which we mostly offset with 150 basis points of benefits from pricing.
Broadly speaking, the year-over-year and sequential trends in gross margin were favorable, and our third quarter performance was in line with forecast. Our operating expense rate was 30 basis points favorable to last year, due to lower incentive compensation.
In our segments, Engine's profit rate grew 40 basis points to 14.6%, that's 50 basis points without the revenue recognition impact. Third quarter was our strongest performance for Engine profit this year, and an incremental margin in the mid 20% range was the best in two years.
Pricing added 1.7%, to Engine in the third quarter, helping to get gross margin modestly up from 2018. While pricing is a never ending activity, we feel good about the practices we're developing and the results we're getting.
We also had some expense favorability in Engine, including savings (ph) from lower incentive compensation. The profit rate in our Industrial segment was down 50 basis points from last year or 40 basis points without revenue recognition. The decline was driven by a higher expense rate, reflecting investments in businesses like process filtration and connected solutions. We offset a small amount of the expense rate pressure with higher gross margin, reflecting strong GTS performance and a little pricing and better mix.
While gross margins in both segments was up modestly, the consolidated rate was down a bit due to un-allocated corporate cost and mix between segments. Third quarter capital expenditures increased to $45 million from $27 million last year, due to capacity expansion projects. New production for PowerCore, fuel and process filtration are big drivers, and we are expanding our footprint in every major region. Based on our progress, we now plan to invest about $150 million in CapEx this year.
We did a small amount of share repurchase last quarter. Year-to-date, we have repurchased 1.6% of outstanding shares and we're on track to hit 2% in fiscal '19. We paid dividends of $24 million last quarter, and last Friday we announced a 10.5% increase to our quarterly dividend. The larger than typical dividend increase comes after two years of record profits, with adjusted earnings up 18% last year and 13% so far this year. So we felt the move supported our long-term yield.
We have paid a dividend for more than 60 years and in 2016, we were proud to have been added to the high yield Dividend Aristocrats index for 20 consecutive years of dividend increases.
I think that's an impressive trend and last week's announcement demonstrates our commitment to the dividend and our confidence in the future of Donaldson. We also announced a new share repurchase program, which replaces the prior authorization. Like the last program, we have capacity to repurchase up to 10% of our outstanding shares, signaling our continued commitment to share repurchases as another means of returning value to shareholders.
I want to switch gears now and cover the key changes to our forecast. Full year sales are now expected to grow between 3.5% and 4.5%, reflecting updated sales projection for off-road, aftermarket and IFS. Sales of off-road are now expected to decline in the mid-single digit. This guide implies fourth quarter sales will be down in the mid teens, reflecting the sharp drop in backlog from a few of our largest customers.
Aftermarket sales are expected to grow in the mid-single digits for fiscal '19. We expect a modest increase in fourth quarter, which includes a 2% headwind from FX. Once again, large OEs drove most of the change. We still expect On-Road will grow in the mid-teens and Aerospace and Defense will be up in the mid-single digits. Altogether, we project Engine sales will grow between 3.5% and 4.5% this year or 6.5% to 7.5% without currency.
The other notable change to our sales forecast was IFS. We now expect sales to grow in the high single digits reflecting lower sales for new dust collection equipment. Excluding BOFA, fourth quarter sales of IFS are still projected to grow. There were no changes to the GTS or special applications forecast, which were year-over-year declines in the high-single and low-single digits, respectively. Our new forecast for the industrial sales growth is 4% to 5% or 7% to 8% without currency.
Fiscal '19 operating margin is projected between 13.8% and 14.2%. Excluding the impact from revenue recognition, we expect an increase of 10 basis points to 50 basis points from last year. The change for our prior forecast was driven by reduced operating expense leverage on a lower base of sales. Our full-year gross margin forecast did not change, we still expect a year-over-year decline of about 50 basis points or 30 basis points above revenue recognition.
Please note that our forecast does not include any tariff on imports from Mexico. Although the US is a net exporter for us, we do import a small percent of our cost of goods from Mexico. Like all of you, we are evaluating the details as they emerge.
Turning back to the FY '19 forecast, our full year EPS is now projected between $2.20 and $2.24, at the midpoint that's $0.12 below the prior forecast. Breaking that down, $0.02 came from Q3. Business performance was $0.04 short and the tax rate gave $0.02 back. The remaining $0.10 came out of the fourth quarter, driven by lower sales. While we don't typically provide this level of detail, there is some unique dynamics between the quarters, which I touched on at Investor Day. In the 60 days since that presentation, changes to our customers' behavior has clearly impacted our perspective.
What hasn't changed is our urgency related to gross margin improvement, and that work is in-flight. New capacity gives us a chance to reset our supply chain, and we are seeing success for managing the price cost relationship.
Longer term, we can mix the Company up, by growing sales of higher margin products, like replacement parts, process filtration, hi-tech membranes and Venting Solutions. Between operational cost takeout and business performance, we plan to grow our gross margin and deliver all-time high operating margins by the end of fiscal '21. That's consistent with what we laid out at Investor Day.
And I also want to remind you the story I shared that day. Recall that Tod and I went on a world tour last year to review budgets. Well, we're doing that again this year. We are very early in the overall process. But I want to share one item for 2020 that we have already identified. As we reset the annual plan, which we do every year, we estimate a headwind from incentive compensation of about $10 million in 2020.
We'll be working to offset that amount during our detailed budget reviews. At a high level, our goal for the 2020 plan is that we have a reasonable growth projections that balance expense discipline, with continued investments in our Advance and Accelerate businesses.
As I frequently say, we are committed to delivering higher levels of profit on increasing sales and our entire team is aligned around that commitment. I'm excited to begin the deep dive into our 2020 plan and I look forward to sharing the details in a few months.
I'll now turn the call back to Tod. Tod?
Tod Carpenter -- Chairman, President & Chief Executive officer
Thanks Scott. For the record, I'm excited about the world tour too. Our plan process is more robust than ever. Our leaders are engaged and we are aligned around a clear set of strategic growth plans. We will continue to fund growth priorities and attack profit enhancement opportunities.
The top priority right now for our operations team is reducing costs and reoptimizing the supply chain. We are at an operational inflection point and the new capacity Scott referenced is a tool for increasing our gross margins.
We have seen some pockets of success already with our lower levels of premium freight and better costing, where line transfers are happening, but there is still more work to do. We are also focused on our strategic growth priorities, which include expanding our technologies and solutions, extending our market access and executing strategic acquisitions.
I want to provide a couple of recent examples of how we are executing against these priorities. Expanding technologies and solutions starts with innovation and we are world class.
As our Chief Technology Officer, Michael Wynblatt says, the secret to leading in the filtration market is having great filter media and that's enabled by having great scientific fundamentals. That's where Donaldson is very different from our competitors. We design our media and can leverage R&D across multiple markets. We diversify with technology. The result is that we create premium products and drive higher returns on our R&D investments. This capability is part of our DNA and we are investing to make ourselves even stronger. We broke ground on our material Research Center, a few weeks ago.
We're building a new R&D facility to further strengthen our material science capabilities. Importantly, we are focused on breakthrough innovation. We will start with the fundamentals and then design technologies and products to further penetrate new and adjacent markets. Another example of innovation is Connected Solutions. We have pilots happening with customers in both segments and we recently introduced a commercial solution for monitoring truck engine air filters.
Our solution uses existing telematics and helps the fleet managers optimize their maintenance schedule. We are selling the product for air filters today and we plan to add fuel and hydraulic monitoring in the future.
In addition to the fleet managers, we have pilots going with major OE customers. Early indications are positive and we are excited about the partnership we are building with this new capability. These are just a couple of recent examples of how we are executing our strategic priorities, but there are many more.
By focusing on portfolio management and having global alignment, we are operating as one Donaldson team, and I'm confident that we can create long-term value for all our stakeholders.
Now, I'll turn the call back to Adam to open the line for questions. Adam?
Questions and Answers:
Operator
Thank you. (Operator Instructions). And your first question comes from Brian Drab of William Blair. Brian, your line is open.
Brian Drab -- William Blair -- Analyst
Hi, good morning. Thanks for taking my questions.
Tod Carpenter -- Chairman, President & Chief Executive officer
Good morning.
Brian Drab -- William Blair -- Analyst
Hey, I just wanted to ask -- and Scott I think you may have touched on this, but just with respect to the longer-term target. You have the targets that you gave for the -- out through fiscal 2021 at the Investor Day. With the revenue guidance, first focusing on revenue with the revenue guidance coming down for this year, do we have to take up the expectation for the -- for fiscal 2020 and 2021? I came out of the analyst day thinking, you grow 7% this year and then 4% organically beyond and now it feels like we have to take that 4% up to maybe 5% or a little higher.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Yes, Hi Brian. So the targets that are listed in our Investor Day presentation, you referred to. I mean those are still in existence. We still stand by those. We obviously brought down the fourth quarter a little bit. So just inherently to reach those same exact numbers, you need to adjust upward a little bit to get there, but we still have a range, and we still are committed to that range of outcome for the FY '18 to FY '21 framework that we listed out at the Investor Day.
Brian Drab -- William Blair -- Analyst
Okay. And then, Scott, you mentioned the world tour and the budget -- in the incentive -- incremental incentive comp for next year. So that $10 million, was that contemplated? It sounds like that was not really contemplated when you talked about your incremental margin guidance and that if I'm doing the math correctly, I mean that could be over 100 basis points headwind to adjusted operating margin.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Yes, I mean that was -- I would say that was partly contemplated.
Brad Pogalz -- Director, Investor Relations
Brian, this is Brad. I'll add to that. As we came in, if you think about FY '18 to '21 as we came into '19, now we have somewhere in the neighborhood of $10 million of favorability this year that we expect from incentive comp, we've talked about that, that the last few quarters but that's the driver of our expense favorability and then that just gets offset in '20. So if you think about '18 to '21, it's a wash in the middle of that.
Brian Drab -- William Blair -- Analyst
Okay, that's helpful. And then just one last quick one, the on-road market seems to still be holding up very well. Do you feel like you're gaining significant share there and where do you think that's going over the next year? It looks like that market is forecasted to soften somewhat and I'm just wondering what your perspective is on that at this point.
Tod Carpenter -- Chairman, President & Chief Executive officer
Brian, this is Tod. On-road for Donaldson is largely a US based story at this point. Clearly we would suggest to you that the on-road market is likely late cycle in the US, but all the customer base and their public comments etc, suggests that, that will continue through the balance of the calendar year. We'll continue to keep an eye on that, and make sure that does hold.
I do want to point out an interesting point on on-road and that's specific to our China-based efforts. So we called out in our script that China, this quarter was down 20% in local currency. However, it's a bit of an anomaly because that, we also said that it was a tough comp. So last year in Q3, China on-road was up 400%.
And so going down 20% this quarter was not a surprise to us. And in fact sequentially, from Q2 this year to Q3 this year, we're actually up 20%. So it's really -- we still continue to make good gains in China and we just had a tough comp to come in to. So overall, you wrap that all up, and we're still in a very favorable outlook on on-road.
Brian Drab -- William Blair -- Analyst
Okay. Thank you very much.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Thanks, Brian.
Operator
And your next question comes from George Godfrey of C.L. King. George, your line is opened.
George Godfrey -- C.L. King & Associates -- Analyst
Thank you. Wanted to ask about the CapEx moving to the upper end of the range of $150 million, and what do you think that implies as a percentage of revenue, not only for this year, but for next year? And my bigger question is it just getting more and more expensive and requiring more and more investment to develop the products that your customers are asking, but it seems like that's a pretty big ramp from where we were just two years or three years ago. Thanks.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Yeah, OK, so I'll start with that. So we said, we expect CapEx to be elevated this year and next year as we bring on additional capacity to account for the rebalancing of supply chain in the additional volumes that we're experiencing. The $150 million is just a forecast of the progress we're making with regard to bringing the additional capacity online.
So in my mind, that's a positive thing that we're increasing that. Next year we will continue to be elevated and we'll be smart about the investments we're going to make, but we're going to continue to invest in capacity. And many of those projects that we'll complete next year are in-flight right now and so -- you know, we continue with our progress.
Tod Carpenter -- Chairman, President & Chief Executive officer
And George, this is Tod, I'll just comment relative to the potential cost increases to develop new products. As you know, we are on multiple year journey to increase our R&D spend from what has typically been 2% to 3%, 3% to 4% of sales.
And the reason we're doing that is really to help support our overall strategic direction to further diversify the Company which really we're strengthening our Material Science space which longer term allows us to go after adjacencies, which frankly are our higher margin based products than our current portfolio.
So we look (ph) to the mix the product, the overall Company up over time. So it's really not a reflection relative to developing additional Air products, etc. It's really a reflection of Donaldson Company continuing our world-class excellence in technology and furthering our advantage against our competition.
George Godfrey -- C.L. King & Associates -- Analyst
So just a follow-up then. The increased capacity in production, like when I hear all of those things, volume, capacity, I think of operating leverage. So that's what you're expecting as these new programs and capacity is filled? And I'll leave it there. Thanks.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Yeah, I mean we laid out our incremental margin expectations at the Investor Day, but we're projecting incremental margin in the 20% to 25% range, through FY '21 with the highest incremental toward the end of that cycle.
So we're investing for improved margins and we're projecting the incremental margins to go along with that.
George Godfrey -- C.L. King & Associates -- Analyst
Thank you, Scott.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Thank you.
Operator
And your next question comes from Nathan Jones of Stifel. Nathan, your line is open.
Adam Farley -- Stifel Financial Corporation -- Analyst
Hey, good morning. This is Adam Farley on for Nathan.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Hi, Adam.
Tod Carpenter -- Chairman, President & Chief Executive officer
Hi, good morning, Adam.
Adam Farley -- Stifel Financial Corporation -- Analyst
Hey. Just turning to Aerospace and Defense, pretty strong constant currency comp there. I know you called out an easy comp year-over-year, but what is driving that performance? Is it broad-based, is it discrete projects, besides the comp, any color there would be great.
Scott Robinson -- Senior Vice President & Chief Financial Officer
It's just a lumpy business. We just happen to have had a good quarter relative to that. We have not changed our outlook, full year, it's still expected to be up mid single digits, roughly. In fact, likely if you do the math on all that, that would suggest a little tougher fourth quarter outlook to it, but it's just the lumpiness of the business.
Brad Pogalz -- Director, Investor Relations
Adam, this is Brad, I'll chime in on the point Tod just mentioned. If you look at our fourth quarter results last year, that was the largest quarter we've had in that business in years. So there is an aspect of this lumpiness that just pops out based on timing of orders.
Adam Farley -- Stifel Financial Corporation -- Analyst
That's helpful. And then just turning to IFS. So the industrial economy (ph) is starting to slow down a little bit, it seems like some capital projects might be moving to the right. What -- did you guys have any confidence that these -- that some of this capital will free up later in the year? Or is it just too much uncertainty out there?
Tod Carpenter -- Chairman, President & Chief Executive officer
So there's two things to breakdown that business. One will be the first-fit, there are capital base equipment and the other would be the aftermarket. Take the aftermarket first, we're still growing in aftermarket. We have good worldwide initiative, good momentum there, mid single digits in the quarter. Look to continue to execute well, going into the fourth quarter and that signals the industrial production and utilization. So that's all positive.
Where we saw a bit of a change in there is the quote to order time cycle elongated. So we're still quoting the projects as we expected them. And so, we have a nice order opportunity, if you will. It's just that people are not converting them, as fast as they were previously in the year. And so that elongation has kind of kicked things out now. That speaks to some uncertainty also in the outlook. And we'll just have to keep a close eye on it. We're going (ph) to be smarter in about 90 days and we'll bake what our new information is into full year at the next call.
Adam Farley -- Stifel Financial Corporation -- Analyst
All right. Thanks for taking my questions.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Thank you.
Operator
And your next question comes from Laurence Alexander of Jefferies. Laurence, your line is open.
Nick Cecero -- Jefferies -- Analyst
Yes, hi, this is Nick Cecero on for Laurence. So you called out rising raw materials, again. And I guess, as you look across your raw material basket, whether it be steel, filter media or petrochemical based products. I guess where are you seeing the most pressure?
Brad Pogalz -- Director, Investor Relations
This is Brad. I'll take that. Overall prices paid were up in the low single digit. Steel and media continue to be the biggest one, and actually media is the largest within that. So as we came into the year, we expected both would be up. Steel has moderated and stabilized since then, while media continues to be a bigger increase.
Nick Cecero -- Jefferies -- Analyst
Got it. Thank you very much. And when you look across Q3 and you look across your entire portfolio, you look at Advance and Accelerate, mature, critical core. For your advance and accelerate part of the portfolio, are you seeing any signs of sales deceleration or margin compression or has it been pretty resilient thus far?
Scott Robinson -- Senior Vice President & Chief Financial Officer
It's been pretty resilient so far, particularly inside there is our dust collection aftermarket business, that's up mid-single digits continuing in positive momentum. Our Engine aftermarket business is up mid to high single digits, bending (ph), process filtration as we talked about was up roughly about 20%. So we're feeling across the board still very positive with the results that we're seeing.
Nick Cecero -- Jefferies -- Analyst
Great, thank you very much.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Thank you.
Operator
Thank you. And your final question comes from Charley Brady. Charlie, your line is open.
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
Hey, thanks guys, good morning guys. Hey, just wondering on the commentary about the large OEMs kind of pulling back a little bit, can you talk to maybe inventory levels at the independent side and I know we're only a month into the end of the Q4. But any signs coming on Q3 that, that has reversed or is that trend kind of continued into Q4 and then I have a follow-up question on that.
Tod Carpenter -- Chairman, President & Chief Executive officer
Charley, this is Tod. So when you look at the off-road sector, which is where we really saw that. Specifically, you're -- you really have to take into account we saw a little bit of that in the construction based markets, mining we didn't necessarily see that. But remember that's still likely early cycle, still lay-off peak for mining would be more business as usual.
Construction likely moved from mid cycle to later cycle. So you saw some de-stocking in that area. And then, with ag, we also saw some within ag -- but really ag is a different story. We had it at about mid cycle, but you know it could be mid to early or mid to late. It's just that there's so much uncertainty surrounding the agricultural markets that how that will float is going to be different.
If tariff start to -- start to remove themselves, for example the ag market could be obviously early cycle. And so that one really drives uncertainty, but we did see some destocking and the destocking that we saw was through the OE, and the OES channel, not the independent channel.
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
Great, thanks. I appreciate that. And just one more from me, so on the raw material cost, the hindsight (ph) you're still experiencing higher raw-mat costs. Can you -- can you give us a sense of where you are today in terms of price versus cost on price realization and is there opportunity, you think to put through additional price increases to further offset that? Thanks.
Scott Robinson -- Senior Vice President & Chief Financial Officer
Yes. So I mean, we were pleased with our pricing performance in the quarter. We added 1.7% to Engine and 1.1% to Industrial. So we've been making good progress on our pricing discipline, in our processes by which we determine what prices we're going to go out with.
Pricing is really never done, but we feel we have good hygiene in place and we feel pretty good about where we have arrived with all the work we've put on it. And you know, we want to continue to win our first-fit programs and we want to continue to drive the aftermarket business.
Those are market based pricing concepts that have to be dealt with, but we're pleased with our process and we'll continue to work on it every day into the future.
Tod Carpenter -- Chairman, President & Chief Executive officer
Yeah. And this is Tod. I'll just add a little bit of color at it. I would suggest that to you that we have likely returned to more normalcy across the corporation, and our business processes on how we approach pricing worldwide.
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
Great. Thanks very much guys.
Operator
And we have no further questions at this time. So I'll turn the call back over to Mr. Tod Carpenter for closing remarks.
Tod Carpenter -- Chairman, President & Chief Executive officer
That concludes today's call. I want to thank everyone for listening, for your time and interest in Donaldson Company. Have a great week. Goodbye.
Operator
Thank you for your participation today. You may now disconnect.
Duration: 38 minutes
Call participants:
Brad Pogalz -- Director, Investor Relations
Tod Carpenter -- Chairman, President & Chief Executive officer
Scott Robinson -- Senior Vice President & Chief Financial Officer
Brian Drab -- William Blair -- Analyst
George Godfrey -- C.L. King & Associates -- Analyst
Adam Farley -- Stifel Financial Corporation -- Analyst
Nick Cecero -- Jefferies -- Analyst
Charley Brady -- SunTrust Robinson Humphrey -- 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 2019 Earnings Call Jun 4, 2019, 10:00 a.m. King & Associates -- Analyst Adam Farley -- Stifel Financial Corporation -- Analyst Nick Cecero -- Jefferies -- Analyst Charley Brady -- SunTrust Robinson Humphrey -- 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. Our disciplined management of the large turbine business combined with our focus on growing the replacement parts sales is driving year-over-year improvement in profit on a dollar and rate basis. | King & Associates -- Analyst Adam Farley -- Stifel Financial Corporation -- Analyst Nick Cecero -- Jefferies -- Analyst Charley Brady -- SunTrust Robinson Humphrey -- 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) Q3 2019 Earnings Call Jun 4, 2019, 10:00 a.m. Scott Robinson -- Senior Vice President & Chief Financial Officer Yeah, I mean we laid out our incremental margin expectations at the Investor Day, but we're projecting incremental margin in the 20% to 25% range, through FY '21 with the highest incremental toward the end of that cycle. | King & Associates -- Analyst Adam Farley -- Stifel Financial Corporation -- Analyst Nick Cecero -- Jefferies -- Analyst Charley Brady -- SunTrust Robinson Humphrey -- 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) Q3 2019 Earnings Call Jun 4, 2019, 10:00 a.m. If you look at our fourth quarter results last year, that was the largest quarter we've had in that business in years. | Donaldson Co (NYSE: DCI) Q3 2019 Earnings Call Jun 4, 2019, 10:00 a.m. King & Associates -- Analyst Adam Farley -- Stifel Financial Corporation -- Analyst Nick Cecero -- Jefferies -- Analyst Charley Brady -- SunTrust Robinson Humphrey -- 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. So let me get into the quarter. | d926213a-1c59-47a8-a4a6-c4a211ed3c7e |
709811.0 | 2019-06-04 00:00:00 UTC | Donaldson Q3 19 Earnings Conference Call At 10:00 AM ET | DCI | https://www.nasdaq.com/articles/donaldson-q3-19-earnings-conference-call-10%3A00-am-et-2019-06-04 | nan | nan | (RTTNews) - Donaldson Company Inc. (DCI) will host a conference call at 10:00 AM ET on June 4, 2019, to discuss Q3 19 earnings results.
To access the live webcast, log on to IR.Donaldson.com
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) will host a conference call at 10:00 AM ET on June 4, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to IR.Donaldson.com 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) will host a conference call at 10:00 AM ET on June 4, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to IR.Donaldson.com 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) will host a conference call at 10:00 AM ET on June 4, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to IR.Donaldson.com 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) will host a conference call at 10:00 AM ET on June 4, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to IR.Donaldson.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 1ba0783e-cd3d-4a10-b6e5-dc0cdfd0f185 |
709812.0 | 2019-06-04 00:00:00 UTC | Donaldson Trims FY19 Outlook - Quick Facts | DCI | https://www.nasdaq.com/articles/donaldson-trims-fy19-outlook-quick-facts-2019-06-04 | nan | nan | (RTTNews) - While reporting financial results for the third quarter, Donaldson Co. Inc. (DCI) lowered its earnings and sales growth guidance for the full-year 2019.
For fiscal 2019, Donaldson now expects earnings in a range of $2.20 to $2.24 per share, compared to the prior guidance range of $2.27 to $2.41 per share.
The company also now expects full-year sales to increase between 3.5 and 4.5 percent, which includes a negative impact from currency of about 3 percent and a benefit from BOFA of 1 percent.
The midpoint of the revised sales guidance range is about 3 percent below prior guidance, driven by changes to the Aftermarket, Off-Road and IFS forecasts. Sales forecasts for all other business units are consistent with prior guidance.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.33 per share on sales growth of 7.1 percent to $2.93 billion for the year. Analysts' estimates typically exclude special items.
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, Donaldson Co. Inc. (DCI) lowered its earnings and sales growth guidance for the full-year 2019. Sales forecasts for all other business units are consistent with prior guidance. On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.33 per share on sales growth of 7.1 percent to $2.93 billion for the year. | (RTTNews) - While reporting financial results for the third quarter, Donaldson Co. Inc. (DCI) lowered its earnings and sales growth guidance for the full-year 2019. For fiscal 2019, Donaldson now expects earnings in a range of $2.20 to $2.24 per share, compared to the prior guidance range of $2.27 to $2.41 per share. The midpoint of the revised sales guidance range is about 3 percent below prior guidance, driven by changes to the Aftermarket, Off-Road and IFS forecasts. | (RTTNews) - While reporting financial results for the third quarter, Donaldson Co. Inc. (DCI) lowered its earnings and sales growth guidance for the full-year 2019. The company also now expects full-year sales to increase between 3.5 and 4.5 percent, which includes a negative impact from currency of about 3 percent and a benefit from BOFA of 1 percent. The midpoint of the revised sales guidance range is about 3 percent below prior guidance, driven by changes to the Aftermarket, Off-Road and IFS forecasts. | (RTTNews) - While reporting financial results for the third quarter, Donaldson Co. Inc. (DCI) lowered its earnings and sales growth guidance for the full-year 2019. For fiscal 2019, Donaldson now expects earnings in a range of $2.20 to $2.24 per share, compared to the prior guidance range of $2.27 to $2.41 per share. The midpoint of the revised sales guidance range is about 3 percent below prior guidance, driven by changes to the Aftermarket, Off-Road and IFS forecasts. | b9cc4a38-c029-4685-af8e-0753b540073e |
709813.0 | 2019-06-04 00:00:00 UTC | Donaldson Company Inc. Q3 adjusted earnings Miss Estimates | DCI | https://www.nasdaq.com/articles/donaldson-company-inc.-q3-adjusted-earnings-miss-estimates-2019-06-04 | nan | nan | (RTTNews) - Donaldson Company Inc. (DCI) reported earnings for its third quarter that rose from last year.
The company's bottom line came in at $75.2 M, or $0.58 per share. This compares with $69.9 M, or $0.53 per share, in last year's third quarter.
Excluding items, Donaldson Company Inc. reported adjusted earnings of $75.2 M or $0.58 per share for the period.
Analysts had expected the company to earn $0.62 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 1.8% to $712.8 million from $700.0 million last year.
Donaldson Company Inc. earnings at a glance:
-Earnings (Q3): $75.2 M. vs. $70.3 Mln. last year. -EPS (Q3): $0.58 vs. $0.53 last year. -Analysts Estimate: $0.62 -Revenue (Q3): $712.8 Mln vs. $700.0 Mln last year.
-Guidance: Full year EPS guidance: $2.20 - $2.24
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 earnings for its third quarter that rose from last year. Excluding items, Donaldson Company Inc. reported adjusted earnings of $75.2 M or $0.58 per share for the period. Analysts had expected the company to earn $0.62 per share, according to figures compiled by Thomson Reuters. | (RTTNews) - Donaldson Company Inc. (DCI) reported earnings for its third quarter that rose from last year. Excluding items, Donaldson Company Inc. reported adjusted earnings of $75.2 M or $0.58 per share for the period. -Analysts Estimate: $0.62 -Revenue (Q3): $712.8 Mln vs. $700.0 Mln last year. | (RTTNews) - Donaldson Company Inc. (DCI) reported earnings for its third quarter that rose from last year. Excluding items, Donaldson Company Inc. reported adjusted earnings of $75.2 M or $0.58 per share for the period. The company's revenue for the quarter rose 1.8% to $712.8 million from $700.0 million last year. | (RTTNews) - Donaldson Company Inc. (DCI) reported earnings for its third quarter that rose from last year. This compares with $69.9 M, or $0.53 per share, in last year's third quarter. Excluding items, Donaldson Company Inc. reported adjusted earnings of $75.2 M or $0.58 per share for the period. | 27addc64-3f60-4bfb-8207-9c01af8e8d9d |
709814.0 | 2019-06-03 00:00:00 UTC | Daily Dividend Report: ARE, DCI, STC, ETM, CAL | DCI | https://www.nasdaq.com/articles/daily-dividend-report%3A-are-dci-stc-etm-cal-2019-06-03 | nan | nan | Alexandria Real Estate Equities (ARE) declared a quarterly cash dividend of $1.00 per common share for the second quarter of 2019. The dividend is payable on July 15, 2019, to shareholders of record on June 28, 2019. The common stock dividend for the second quarter of 2019 of $1.00 per common share represents an increase of 3 cents, or 3 percent, over the first quarter of 2019.
Donaldson's Board of Directors declared a regular cash dividend of 21.0 cents per share, an increase of 10.5 percent from the prior quarterly cash dividend of 19.0 cents per share. The dividend is payable June 28, 2019, to shareholders of record on June 13, 2019.
Stewart Information Services Corporation (STC) announced that its Board of Directors had declared a cash dividend of $0.30 per share for the second quarter 2019, payable June 28, 2019, to common stockholders of record on June 14, 2019.
Entercom Communications Corp. (ETM) has approved a quarterly dividend on the Company's stock of $0.09 per share. The dividend is payable on June 28, 2019 to shareholders of record as of the close of business on June 17, 2019.
The quarterly dividend for Caleres (CAL) of $0.07 per share, will be payable on July 1, 2019, to shareholders of record as of June 17, 2019.
VIDEO: Daily Dividend Report: ARE, DCI, STC, ETM, CAL
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, DCI, STC, ETM, CAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Stewart Information Services Corporation (STC) announced that its Board of Directors had declared a cash dividend of $0.30 per share for the second quarter 2019, payable June 28, 2019, to common stockholders of record on June 14, 2019. Entercom Communications Corp. (ETM) has approved a quarterly dividend on the Company's stock of $0.09 per share. | VIDEO: Daily Dividend Report: ARE, DCI, STC, ETM, CAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The common stock dividend for the second quarter of 2019 of $1.00 per common share represents an increase of 3 cents, or 3 percent, over the first quarter of 2019. Donaldson's Board of Directors declared a regular cash dividend of 21.0 cents per share, an increase of 10.5 percent from the prior quarterly cash dividend of 19.0 cents per share. | VIDEO: Daily Dividend Report: ARE, DCI, STC, ETM, CAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Donaldson's Board of Directors declared a regular cash dividend of 21.0 cents per share, an increase of 10.5 percent from the prior quarterly cash dividend of 19.0 cents per share. Stewart Information Services Corporation (STC) announced that its Board of Directors had declared a cash dividend of $0.30 per share for the second quarter 2019, payable June 28, 2019, to common stockholders of record on June 14, 2019. | VIDEO: Daily Dividend Report: ARE, DCI, STC, ETM, CAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The common stock dividend for the second quarter of 2019 of $1.00 per common share represents an increase of 3 cents, or 3 percent, over the first quarter of 2019. Stewart Information Services Corporation (STC) announced that its Board of Directors had declared a cash dividend of $0.30 per share for the second quarter 2019, payable June 28, 2019, to common stockholders of record on June 14, 2019. | 260509ab-29c5-4217-b5f3-7d9f7ccef6cf |
709815.0 | 2019-05-14 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-2019-05-14 | 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.
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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. | 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 PBCT — FREE Get the latest Zacks research report on VFC — 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 PBCT — FREE Get the latest Zacks research report on VFC — 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. 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. | 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. 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. | ecd32e2d-8ac5-4044-98d0-5ca53777ed7d |
709816.0 | 2019-05-06 00:00:00 UTC | DCI Crosses Above Average Analyst Target | DCI | https://www.nasdaq.com/articles/dci-crosses-above-average-analyst-target-2019-05-06 | nan | nan | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.33, changing hands for $53.82/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 $5.859.
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 $53.33/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.33 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.
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. | In recent trading, shares of Donaldson Co. Inc. (Symbol: DCI) have crossed above the average analyst 12-month target price of $53.33, changing hands for $53.82/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 $53.33/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.33 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 $53.33, changing hands for $53.82/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 $53.33/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.33 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 $53.33/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.33 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 $53.33, changing hands for $53.82/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 $53.33, changing hands for $53.82/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 $53.33/share, investors in DCI have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $53.33 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? | b8a29d30-35ae-464c-87d0-b2240fa50aa5 |
709817.0 | 2019-03-29 00:00:00 UTC | DCI Makes Bullish Cross Above Critical Moving Average | DCI | https://www.nasdaq.com/articles/dci-makes-bullish-cross-above-critical-moving-average-2019-03-29 | nan | nan | In trading on Friday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.83, changing hands as high as $50.18 per share. Donaldson Co. Inc. shares are currently trading up about 1.6% 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.04.
Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $49.83, changing hands as high as $50.18 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.04. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $49.83, changing hands as high as $50.18 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.04. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $49.83, changing hands as high as $50.18 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.04. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $49.83, changing hands as high as $50.18 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 $40.27 per share, with $59.43 as the 52 week high point — that compares with a last trade of $50.04. Donaldson Co. Inc. shares are currently trading up about 1.6% on the day. | 136d809f-fa81-445d-8f9e-1d719ee09e57 |
709818.0 | 2019-03-07 00:00:00 UTC | Donaldson (DCI) Lags Q2 Earnings Estimates, Lowers View | DCI | https://www.nasdaq.com/articles/donaldson-dci-lags-q2-earnings-estimates-lowers-view-2019-03-07 | nan | nan | Donaldson Company, Inc.DCI reported weaker-than-expected results for second-quarter fiscal 2019 (ended Jan 31, 2019), with a negative earnings surprise of 7.8%. This was the second consecutive quarter of weak results.
The company's adjusted earnings in the reported quarter were 47 cents per share, lagging the Zacks Consensus Estimate of 51 cents. However, the bottom line increased 9.3% from the year-ago quarter's figure of 43 cents on the back of sales growth and lower taxes, partially offset by higher raw material and supply-chain costs.
Segmental Performance Drives Revenues
In the fiscal second quarter, Donaldson's net sales were $703.7 million, reflecting year-over-year growth of 5.9%. Notably, the BOFA International acquisition added 1.4% to sales growth while pricing had a positive 1.3% impact and other items added roughly 0.3%. This was partially offset by 2.7% negative impact of unfavorable movements in foreign currencies.
The top line lagged the Zacks Consensus Estimate of $717.3 billion by 1.9%.
On a geographical basis, the company's net sales in the United States were $289.4 million, increasing 6.3% year over year. Sales in Europe, Middle East and Africa increased 8% year over year to $207.4 million while in the Asia Pacific sales were $149.3 million, reflecting year-over-year growth of 0.9%. Sales in Latin America were $57.6 million, up 9.9% year over year.
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 66.6% of net sales in second-quarter fiscal 2019) sales were roughly $469 million, reflecting year-over-year growth of 6%.
This improvement was primarily driven by growth of 22% in On-Road sales, 5.8% in Aftermarket sales, and 5% in Aerospace and Defense sales. Notably, Off-Road sales in the reported quarter were flat year over year.
Revenues generated from Industrial Products (accounting for 33.4% of net sales in second-quarter fiscal 2019) amounted to $234.7 million, increasing 5.6% from the year-ago quarter.
This year-over-year improvement in the reported quarter was driven by 13.5% growth in Industrial Filtration Solutions' sales, partially offset by 16.7% decrease in Gas Turbine Systems' sales and 3.6% fall in Special Applications' sales.
Gross Margin Fall Y/Y, Operating Margin Flat
In the reported quarter, Donaldson's cost of sales increased 7.3% year over year to $478.3 million. It represented 68% of net sales versus 67.1% in the year-ago quarter. Adjusted gross margin in the quarter was 32%, down 90 basis points (bps) year over year. The results were adversely impacted by sales mix as well as higher supply chain and raw material costs. However, favorable pricing was a relief.
Operating expenses grew 1.1% year over year to $140.3 million. It represented 19.9% of net sales versus 20.9% in the year-ago quarter. Adjusted operating margin in the quarter under review was 12.1%, flat year over year. Effective tax rate in the quarter was 24.8%, down from 25.7% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting second-quarter fiscal 2019, Donaldson's cash and cash equivalents were $191.2 million, down 4.4% from $199.9 million recorded in the las t report ed quarter. Long-term debt was up 0.3% sequentially to $632.5 million.
In the first half of fiscal 2019, it repaid the long-term debt of $14.5 million while raised $135 million from long-term debts.
In the reported quarter, the company generated net cash of $79.5 million from operating activities, reflecting an increase of 73.2% from the year-ago tally. Capital expenditure totaled $38.9 million versus $25.9 million in the year-ago quarter. Free cash flow in the reported quarter was $40.6 million, up from $20 million in the year-ago quarter.
In the first half of fiscal 2019, the company used $102 million for purchasing treasury stocks and $48.7 million for paying dividends.
Outlook
For fiscal 2019 (ending July 2019), Donaldson anticipates delivering record top and bottom-line results. Growth of business opportunities in emerging markets, technological investments and capacity expansion will be advantageous. However, the company is also concerned about adverse impacts of unfavorable movements in foreign currencies, and uncertainties related to global politics and trade.
Sales in fiscal 2019 are projected to increase 5-9%, down 2 percentage points from the previously stated range. Forex woes are predicted to have an adverse 3% impact versus 2% mentioned earlier. The BOFA buyout will add 1% to sales and pricing will have a favorable impact of 1-2%.
Engine sales will likely increase 6-10%, down 1 percentage point from the previous forecast. Within the Engine segment, Aftermarket and Off-Road sales are anticipated to grow in a low-single and high-single digit, respectively, reflecting downward revisions from the prior forecasts. On-Road sales are still predicted to grow in mid-teens range while Aerospace and Defense sales will likely increase in a mid-single digit (reflecting increase from the prior guidance).
Industrial sales are projected to increase 4-8%, down roughly 3% from the previously mentioned range. Forex woes will adversely impact sales by 3% (versus 2% mentioned earlier) and BOFA acquisitions will add 4%. Businesses are predicted to be weak in Industrial Filtration Solutions and Special Applications.
The company's operating margin is predicted to be 14.2-14.6%. Interest expenses will likely be approximately $21 million and capital expenditure will be $130-$150 million.
Earnings are expected to be $2.27-$2.41, down from previously mentioned $2.31-$2.45. The revised projection reflects year-over-year growth of 13-20%.
Donaldson Company, Inc. Price and Consensus
Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote
Zacks Rank & Stocks to Consider
With a market capitalization of approximately $6.6 billion, Donaldson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Industrial Products sector are Atlas Copco AB ATLKY , Tennant Company TNC and Chart Industries, Inc. GTLS . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
In the past 60 days, earnings estimates for 2019 improved for Atlas, Tennant and Chart Industries. Further, earnings surprise in the last reported quarter was a positive 42.42% for Atlas, 14.89% for Tennant and 12.96% for Chart.
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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 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 weaker-than-expected results for second-quarter fiscal 2019 (ended Jan 31, 2019), with a negative earnings surprise of 7.8%. Click to get this free report Atlas Copco AB (ATLKY): Free Stock Analysis Report Tennant Company (TNC): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. However, the bottom line increased 9.3% from the year-ago quarter's figure of 43 cents on the back of sales growth and lower taxes, partially offset by higher raw material and supply-chain costs. | Click to get this free report Atlas Copco AB (ATLKY): Free Stock Analysis Report Tennant Company (TNC): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI reported weaker-than-expected results for second-quarter fiscal 2019 (ended Jan 31, 2019), with a negative earnings surprise of 7.8%. Gross Margin Fall Y/Y, Operating Margin Flat In the reported quarter, Donaldson's cost of sales increased 7.3% year over year to $478.3 million. | Click to get this free report Atlas Copco AB (ATLKY): Free Stock Analysis Report Tennant Company (TNC): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI reported weaker-than-expected results for second-quarter fiscal 2019 (ended Jan 31, 2019), with a negative earnings surprise of 7.8%. Sales in Europe, Middle East and Africa increased 8% year over year to $207.4 million while in the Asia Pacific sales were $149.3 million, reflecting year-over-year growth of 0.9%. | Donaldson Company, Inc.DCI reported weaker-than-expected results for second-quarter fiscal 2019 (ended Jan 31, 2019), with a negative earnings surprise of 7.8%. Click to get this free report Atlas Copco AB (ATLKY): Free Stock Analysis Report Tennant Company (TNC): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. A brief snapshot of the segmental sales is provided below: Engine Products ' (accounting for 66.6% of net sales in second-quarter fiscal 2019) sales were roughly $469 million, reflecting year-over-year growth of 6%. | f91f53b0-61de-444e-894c-90bd0d79139a |
709819.0 | 2019-03-06 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-dci-2019-03-06 | nan | nan | In trading on Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $49.72, changing hands as low as $48.66 per share. Donaldson Co. Inc. shares are currently trading down about 4.8% 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.22.
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.
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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $49.72, changing hands as low as $48.66 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.22. 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $49.72, changing hands as low as $48.66 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.22. 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $49.72, changing hands as low as $48.66 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.22. 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed below their 200 day moving average of $49.72, changing hands as low as $48.66 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.22. 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. | 8e2348f3-312d-47c6-a3c4-8ee0a97e3a48 |
709820.0 | 2019-03-06 00:00:00 UTC | Donaldson Co (DCI) Q2 2019 Earnings Conference Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-co-dci-q2-2019-earnings-conference-call-transcript-2019-03-06 | nan | nan | Donaldson Co (NYSE: DCI)
Q2 2019 Earnings Conference Call
March 06, 2019 , 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, my name is Kim, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson Second Quarter Fiscal Year 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.
Brad Pogalz, you may begin your conference.
Brad Pogalz -- Director of Investor Relations
Good morning. Thank you for joining Donaldson's second quarter 2019 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 and an update on our 2019 plans. During today's call, we will reference non-GAAP metrics such as adjusted earnings. You can find 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. I also want to remind everyone that we will be hosting an Investor Day on Tuesday, April 9. Members of our management team will be providing an in-depth review of our businesses and strategic priorities. So I invite all of you to participate via the live webcast. Details of the event can be found on our Investor Relations website or please feel free to reach out to me with questions.
With that, I'll now turn the call to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Brad. Good morning, everyone. We are pleased to have delivered another quarterly record for sales and EPS, while adjusting to an operating environment that was increasingly mixed. Within the quarter, we saw a broad-based slowdown in December that led to softer than expected results.
While overall trends improved in January, weather related challenges in the US moved a couple of million dollars of sales into February. Currency translation was another headwind for sales with a larger than expected impact of 3% in the quarter, including the increased impact from currency and the slowdown in December, we still expect strong full year sales growth of 5% to 9% or 8% to 12% without currency. Importantly, we maintained our operating margin forecast which is up 40 basis points to 80 basis points from last year.
Scott will provide more details later in the call. So, I'll now turn to an overview of second quarter sales. Total sales were $704 million, which is 5.9% above last year or 8.6% without currency. Both segments enjoyed similar increases, including pricing benefits of more than 1%. The 6% growth in Engine was led by On-Road, which was up 22%. Second quarter sales in the US were up 32% and On-Road sales grew 80% in China. The US continues to benefit from increasing production of Class A trucks and China is all about share gain.
As Chinese always develop higher performing equipment to compete at a global level, they need advanced technology like ours. Our program wins began ramping up about five quarters ago and sales have grown meaningfully since then. China's On-Road sales are now 10% of total company on road, and we sold more than -- more last quarter in China, than we did in all of 2017. As we deepen our relationship with local manufacturers, we are focused on understanding their needs and managing their order volatility. While we expect the process of maturing our relationships will take time, we are optimistic about our long-term prospects to drive growth in China's massive market.
Turning to Off-Road, sales were flat after growing 37% last year. Excluding currency, sales grew 3% and the markets were more mixed than they have been. Latin America, for example was unable to build on last year's very strong growth as political uncertainty in that region resulted in project slow downs. We also had softness in the US due primarily to lower orders from large customers in December. On the other hand, we had strong growth in EMEA, due in part to pre-buys for upcoming regulatory changes. Despite mixed conditions, demand for our innovative products remained intact.
We had mid single-digit increases in our first-fit sales of fuel products and innovative air products, including PowerCore. Razor-to-sell razor-blade products make up more than 30% of Off-Road sales today and they're growing much faster than legacy products. Our past program wins and the pipeline of opportunities give us confidence that our Off-Road business will continue to outperform in the market. Engine aftermarket sales were up 6% last quarter or nearly 9% in local currency. We are encouraged by the durability of our aftermarket business which finished the 12th quarter in a row with year-over-year growth in both channels.
Sales of the independent channel were up in the mid-low single digits, reflecting strong equipment utilization being partially offset by oil and gas related slowdown in the US. Second quarter sales in the OE channel were up in the low double-digits leaving to grow were innovative air and fuel products with a combined increase in the low teens. These products further strengthen our foundation for profitable growth into the future, helping to sustain our aftermarket business across cycles.
Finally Aerospace and Defense sales were up 5% last quarter with ground defense driving the increase. Defense orders can be lumpy, so we want to note that there is no appreciable change in market conditions. Second quarter sales in the Industrial segment grew 5.6% or 8.4% without currency, led by Industrial Filtration Solutions or IFS. Sales of IFS grew 13.5% last quarter, including 6.5% from BOFA and a currency headwind of 3.3%. Although market uncertainty appears to be resulting in a more cautious stance regarding capital investments. Sales of new equipment were up in the mid single-digits last quarter and that's on top of a 20% increase in the prior year.
Growth was supported by sales of our innovative down flow evolution products, which grew 50% last quarter and we also had strong international growth. Sales in Latin America were up significantly due in part to some new large projects and we also had strong growth in China. Excluding currency translation, China sales of new dust collectors were up in the low double-digits and replacement parts sales grew nearly 40%. Targeted efforts aligned to China's Blue Sky initiative create substantial opportunities for further expansion.
Process filtration continues to do well for us. Second quarter sales were up in the low-teens or high-teens without currency. The business represents less than 10% of IFF today, but the customer response to our offering is positive and we expect to continue growing at a robust pace. Second quarter sales of Gas Turbine Systems or GTS were down 17%, which is somewhat better than expected. As we continue to deal with market declines, our efforts to rightsize this business are paying off and they position us well for the future.
Special Application sales declined 4% last quarter, driven by the Disk Drive market. As we have previously discussed, the recent strength in Disk Drive sales was a temporary situation and our second quarter results reflect the longer-term trend in this shrinking market. Before turning the call to Scott, I want to share a few performance highlights related to our strategic priorities. During second quarter, sales of innovative first-fit and aftermarket products in Engine had a combined increase in the high single-digits, which is several percent higher than legacy growth rates.
Industrial growth initiatives for dust collection replacement parts, process filtration and venting solutions drove combined growth in the high single-digits or low double-digits without currency. Total replacement parts sales for Donaldson grew 3% faster than first-fit sales last quarter. And the local currency sales increase outside the US was about 10% compared with 6% in the US. At a high level, these results show the progress we are making to expand our solutions and technologies around the world and we believe these are important indicators of future profitable growth.
I'll now turn the call to Scott for his update. Scott?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Thanks, Tod. Good morning everyone. We're pleased to have delivered strong local currency sales growth in both segments and adjusted EPS of $0.47 was up 9% from last year. However, a negative impact from currency and a softer-than-expected demand -- December contributed to second quarter sales and profit that were below our forecast.
Before getting into the details, I want to call out two items, first. Please note that our ne t earnings for second quarter 2019 and 2018 include tax reformulated charges of $400,000 and $110 million respectively. These amounts have been excluded from adjusted earnings in a respective periods.
Second, as a reminder, we adopted two new accounting standards this fiscal year, revenue recognition and pension accounting. Prior periods are restated to conform with pension accounting, but that's not the case with revenue recognition. While the adoption of this standard had a small impact on sales and profit dollars, it effectively diluted second quarter gross and operating margins, including 10 basis points of dilution from revenue recognition, second quarter operating margin was flat with the prior year, reflecting strong expense leverage offset by a gross margin decline.
Our second quarter operating expense rate improved 100 basis points from last year, driven by lower incentive compensation and leverage on increasing sales. We're pleased to have delivered a historically low expense rate while investing in our strategic priorities. Second quarter gross margin declined about 90 basis points from last year or 70 basis points when you adjust for the revenue recognition impact. Higher raw material costs added 130 basis points of pressure which we offset with price increases. Supply chain inefficiencies, including investments to support our customers combined with an unfavorable mix of sales also pressured gross margins. These headwinds were particularly strong in December.
Our January had a sequential improvement in gross margin and incremental margin of 50%, it was not enough to recover from December. The same was true in the segments. In Engine the second quarter profit margin of 11.3% included a drag of about 10 basis points from revenue recognition. The decline from the prior year reflected higher raw material and supply chain costs and unfavorable mix of sales and a lower contribution from joint ventures.
The Industrial margin of 13.7% also included a 10 basis points of drag from revenue recognition. The year-over-year margin decline was driven primarily by unfavorable mix of sales and an expected purchase accounting adjustment related to the BOFA acquisition. Margin pressures in both segments were partially offset by price realization and expense leverage. We also had year-over-year favorability in the corporate and unallocated expense driven by lower variable compensation than last year.
Capital expenditures grew to $39 million last quarter, primarily due to capacity expansion projects around the world. We spent $45 million on share repurchase and dividends in second quarter and year-to-date, we have repurchased about 1.6% of our outstanding shares and paid dividends of $49 million. At the end of second quarter, our leverage ratio of 1.1 times EBITDA was in line with our long-term target. The balance sheet is in good shape and we continue to focus on optimizing our working capital. We made progress on receivables last quarter and new capacity will help with inventory as we normalize the supply chain.
Turning to our full year guidance, our revised forecast still reflects strong growth and record level of sales and profit. We are projecting full year sales growth between 5% and 9% and EPS increase between 13% and 20%. These ranges are about 2% below the prior forecast with half the change from currency and the balance from the markets, particularly related to December's pass.
The currency headwind is now expected to be 3%, up from 2% and we still expect benefits of 1% from BOFA and 1% to 2% from pricing. Engine sales are now projected up 6% to 10%, reflecting an additional headwind of 1% from currency translation, combined with adjustments among the business units.
Currency and recent trends led to a more modest growth projection in Off-Road and aftermarket which are now expect to increase in the low single-digits and high-single digits respectively. Sales of Aerospace and Defense are now forecast up in the mid-single digits, driven by defense orders and we still expect strong growth in the mid-teens for On-Road.
Overall, we still see growth opportunities in the Engine markets. Second half sales are modeled up in the high single-digits, including a 3% currency headwind. Across the segment, we expect innovative products and the strength of our recurring revenue stream will drive continued profitable growth. Turning to Industrial, we now expect a full year sales increase between 4% and 8% or three points below prior guidance. Business conditions in IFS and Special Applications account for two-thirds of the change and currency adds 1 point of pressure.
IFS sales are now expect to increase in the low double-digits, which includes 6.5 points from BOFA. As demand for new equipment moderates, we still expect replacement parts and process filtration will deliver strong growth. Sales of Special Application are now expected to decline in the low single-digits, reflecting renewed pressure from the disk drive market.
Our GTS forecast is unchanged, with full year sales expected to be down in the high single digits. Sales for large turbine projects are driving the decline and we expect full year growth in sales of replacement parts. Our second half industrial sales are modeled up in the mid-single digit range, reflecting solid growth in IFS and declining sales in GTS and Special Applications. Areas where we're making strategic investments like replacement parts, process filtration and venting solutions are expected to deliver strong growth in fiscal '19.
We still project full year operating margin between 14.2% and 14.6%, which is up 50 basis points to 90 basis points from last year, when you exclude the 10 basis point impact from revenue recognition. The improvement is coming from expense leverage and lower incentive compensation with favorability from these factors offset by increased investments in our strategic priorities like R&D and lower gross margin.
We now predict gross margin will be down from last year by about 0.5 point or 30 basis points when adjusting for revenue recognition. The decline is due primarily to performance in December and we still expect price increases will offset higher raw materials and freight costs. Our operating margin forecast for the back half of fiscal '19 reflects meaningful sequential improvement in gross margin and continued expense leverage, resulting in a back half incremental margin that builds to the high-20% range over the third and fourth quarter.
Improving gross margin over the long-term is a top priority. Normalizing demand combined with new capacity, gives us an opportunity to accelerate some initiatives. One priority is moving production to optimal locations, which typically means lower costs as we reset our supply chain. We have new capacity in six locations coming online over the next two quarters, giving us excellent opportunity for progress. New capacity also gives us the opportunity to refocus on cost reduction within the plans. As we relieved demand related constraints, we can direct additional resources toward our continuous improvement initiatives, and of course pricing remains a top priority.
We are pleased with the progress in many parts of the business, including Engine. We maintain a locally competitive stance in our independent channel, given us more pricing latitude and a quicker path to recovering cost inflation. Our pricing discussions with OE customers is also about recovering the cost increases that we absorbed, but that process takes more time. As we make progress on that front, we also continue to enjoy the far more valuable part of those relationships, winning first-fit programs with innovative products. We have decades of relationships with many of these customers. And our team of engineers works closely with theirs. Giving that proximity, our mission is to help them solve their problems, while gaining share of the first-fit and aftermarket opportunities.
These wins are critical part of our long-term sales and profit growth formula, so our focus in the OE channel has multiple dimensions. We remain committed to increasing our levels of profitability at increasing sales. As we address the gross margin pressure, we are closely managing discretionary expenses while maintaining investments that will drive future profitable growth and I think we are striking the right balance.
Moving down to fiscal '19 P&L, other income is now forecast between $5 million and $9 million, down $7 million from the prior guide, softer than expected joint venture performance and FX losses drove the change. The interest expense forecast dropped to $21 million from $23 million, reflecting interest rate benefits from our global cash optimization efforts. We also refine our tax forecast and now expect the full year rate to be about 30 basis points below the prior guidance.
We expect fiscal 2019 capital expenditures between $130 million and $150 million, cash conversion between 60% and 75% and our share repurchase target remains at 2%. Overall, our forecast for the back half of 2019 includes strong top line growth in businesses where we are making strategic investments, sequential improvement in sales, operating margin and EPS, incremental margin in the high 20% range and disciplined capital deployment that reflects investment in the company and returning cash to shareholders.
I'll now turn the call back to Tod to provide update on some of our strategic initiatives. Tod?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks, Scott. We're excited with the progress we are making on investments that will drive future profitable growth. One of note is our e-commerce site, shop.donaldson.com. So far this year we have transacted more than $170 million with 2,400 customers around the world. Recent enhancements include the ability to launch targeted regional promotions and we now also show real time product availability. Our objective with shop.donaldson.com, is to make it even easier for customers to buy from us and we have excellent momentum. Another important activity is developing our capabilities related to Connected Solutions. Our filter minor team in Engine has pilot activities with nearly all our OEM customers.
We are also pursuing aftermarket opportunities with large fleet owners that want to optimize their costs. Importantly, our solution in Engine is being designed around what the customers want. So we can effectively leverage our deep relationships to drive this new business model. The benefits of Connected solutions in Industrial are also focused on creating value for our customers. We have connected dust collectors in the field and we began offering a subscription service last quarter that gathers real-time data, applies analytics in the cloud and relays insights to the operator through desktop or mobile applications.
We are further expanding our infrastructure to offer these solutions, one important component will be adding a connected controller to all new dust collectors, making it easy for our customers to opt into the programs we develop. We have also developed a simple cost-effective way of retrofitting existing collectors in the field. Our industrial customers want these solutions and our broad product portfolio combined with already deep access puts us in an excellent position to drive profitable growth in this emerging space. Investments in capacity expansion are another way we are supporting future growth. Over the next couple of quarters, several new resources dedicated to innovative products will come online.
In addition to fueling growth in both segments, this capacity also creates an operational inflection point for us. We are now at a point, where we will reoptimize our production and supply chain and we are aggressively pursuing cost optimization to drive gross margin improvement. We are also expanding our technological capabilities through R&D investments, as we have previously highlighted, we are on a multi-year journey to increase our annual R&D spend and we have plans to step-up our capital expenditures.
I am pleased to announce that we will be investing $50 million to build a new R&D facility at our global headquarters here in Minnesota. This new facility will directly support the further strengthening of our materials science capabilities. These technologies are critical to penetrating new and existing markets, especially those that place a high value on the integrity and quality of their respective products. These R&D investments have a high return for us. We can develop products that carry gross margins above the company average and we can diversify with those technologies in a wide variety of applications.
Donaldson is a technology led filtration company and these investments will continue to strengthen our position as a leader in the global filtration industry. Before closing, I want to thank our employees for their commitment to supporting our customers and executing our strategic priorities. As we move into the second half of fiscal '19, I am confident that we're going to finish the year strong, while strengthening our position for future growth. I also want to mix a special acknowledgment to the employees that work at our Alabama facility, where tornadoes past within 15 miles of our plant. Our thoughts are with all of you and your families as you work to recover from the devastating weather last weekend.
Now, I'll turn the call back to Kim to open the line for questions. Kim?
Questions and Answers:
Operator
(Operator Instructions) Your first question comes from the line of Nathan Jones from Stifel. Your line is open.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Good morning, everyone.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Good morning, Nathan.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Maybe we could just start talking a little bit more about December, I mean you guys said it was pretty broad-based and pretty state, maybe you can give us some color on, how much below your expectations it was whether or not there was any particular end markets or particular geographies where it was worst? Just any more color you can give us on what happened in December?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, December was just started out as kind of a slow month for us, and it kind of continued, we probably missed our sales by about $20 million. So that was a -- that's a big number for us, the miss in a month. And it just kind of started slow and continued that way during the month and then in January things improved.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, Nathan. I would add a little bit of color in the sense for that, it was broad-based both in our industrial businesses and our Engine-based businesses. We still have -- while we still have year-over-year growth, December carved such a whole for us, we actually had negative incremental margin in December. And as Scott pointed out in his script had a 50% January incremental margin growth and it still was not enough to get us to where we want to be and we would expect to be within incremental margin and that shows the hit specifically that we took within December as we saw industrial-based projects kind of get a new cautiousness to them and then a more broad-based Engine slowdown as well.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
And so, -- I mean it sounds like you saw a rebound in January. Can you talk about the January get back to where you had anticipated? Obviously the incrementals are very, very good there. And then any commentary you can give on what you've seen in February?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, so in January, we did see a nice rebound to what we would have expected within January and got back into what we had been putting within our forecast for the balance of the year, so we're very comfortable. We'll talk about February in the Q3 here in about 90 days. So I won't comment on that at this point. But within January, we did see a very noticeable rebound back to what we would consider more normalcy.
Brad Pogalz -- Director of Investor Relations
Nathan, this is Brad, I'll jump in the -- just doing the math on the guide as well. If you think about the number Scott shared the $20 million and the extra percent from currency. Those two items alone account for almost all of our full year guidance change, sales and EPS. So that gives you some context about how we're thinking about the rest of the year as well.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Yeah, look like it didn't change much for the rest of the forward outlook. But just one more on OE price. I know that takes more time, but we've been taking a fair amount of time so far, I mean you've been dealing with inflation for 12 months now. Can you talk about what progress you've made on the OE price side? What actions you're still looking to take and what we could expect from OE price going forward?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. First I'd complement the teams across the industrial base businesses where we have worked very hard through this inflationary period and we would suggest that, we are back into a more normal type of a pricing action that the company usually see. So we've worked successfully through that tough cycle. On the independent aftermarket channel within Engine, we've also successfully work through that and I would complement the teams worldwide that have done excellent there. So we feel very good about where we are in that space.
And our OE teams have done an excellent job really going after all of the price recovery, while we have not had 100% success on that, we still have some progress to go. We are quite a ways down the path with very noticeable success in that cycle. Still, it does not appear as though we would be able to accomplish a 100% price get back if you will, but good progress are being made, still more opportunity and still working very hard to accomplish that.
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Okay, thanks very much. I'll pass it on.
Brad Pogalz -- Director of Investor Relations
Thank you.
Operator
Your next question comes from Brian Drab from William Blair. Your line is open.
Brian Drab -- William Blair & Co. -- Analyst
Hey, good morning.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning, Brian.
Brian Drab -- William Blair & Co. -- Analyst
First just on China, great momentum there. Can you elaborate a little bit as a result primarily selling air intake filters. Is there opportunity as you gain traction there and you're gaining share to sell the whole suite of products for lubricant, hydraulics? And how -- just -- work in this business go, where do you hope that you are in China in the truck market in a year or two?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, Brian, this is Tod. Within China we're having good success as you know on air, but we are also having success on liquid, so we are across the product families in Off-Road which is where we've traditionally had good success. We continue to have good penetration in both of our product families and now we have good momentum within the On-Road sector of China. And you may note that the China Class A truck market is roughly three times the size of that of the United States. And so, consequently, we have won air-based projects in China with PowerCore and that's future revenue that we would expect to continue to pick-up. And we have also won a liquid-based new revenue, new projects across that space as well.
Mostly on the liquid our wins are on the Off-Road sector rather than within the On-Road sector. So we're very pleased with the progress that we have and we look for more great things out of China.
Brian Drab -- William Blair & Co. -- Analyst
Okay. What would you say -- can you give us any clue what your share that market is now? I think it's still low single-digit percentage and what you think it could be, any goals there that you could (Multiple Speakers)
Tod E. Carpenter -- Chairman, President and Chief Executive officer
It is low single-digits at this current time, we have some internal goals, obviously, we want to get into what we more normally would believe, it's comfortable across our Engine-based businesses. So clearly it's a double digit, we believe we're on a nice track to be able to do that. If China does have some interesting volatilities to it, as they bring projects forward and then ready them for project launch and then we'll pause. So they have create -- they naturally created more lumpiness to the beginning of program. So we'll be sure to call that out as we see that. But we have some excellent wins that we expect future revenue over there and we would expect to get our share in China up to what we enjoy worldwide .
Brian Drab -- William Blair & Co. -- Analyst
Okay, great. And then just one other question for now. I'm just curious if you can give us some insight into the gas turbine market, just in a little more depth regarding the competitive landscape. I think a couple of years ago, one of your competitors placed a pretty big bet on taking some low margin business, and this whole story is, we don't have the transparency that we used to, given some of the acquisitions in the space in that. But is there anything you could help us understand how the competitive landscape is? And how the environment is, in terms of your need to make decisions to walk away from low margin business and just how challenging is that end market going to be over the next year or two?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Brian, as you know that we changed our strategy some years ago now in order to be careful about our large turbine projects. It would appear that, that strategic change was timed exceptionally. Well our competitive -- our competitors really went all in at that moment. We were adjusting, they were doubling down, and so consequently, I think because the cycle then turn difficult on all of us, we sit today at a really strong position with how we're operating the business and our gas turbine team has done exceptional at restructuring it and sizing it for the current market.
As we look forward within the market place, we do not see an appreciable rebound in the gas turbine within this fiscal year, we've always said that this year would be more stability and based upon our ability to go after aftermarket in small turbine-based projects, small turbine meeting oil and gas and those kind of related projects, we believe that we will start to see growth -- some growth next fiscal year, but this is a year of stability.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Brian, maybe I can just add to, this is Scott, I think we probably told you this, but that large turbine business now represents less than 10% of total GTS, so we have very limited exposure at this point. And so, there is really not any risk of going down further in large turbine and we will continue to be selective and disciplined and only take large turbine projects, where the return is sufficient. And so we're -- we've really rid ourselves of that exposure and so going forward in the large turbine business, it can only be positive to Donaldson.
Brian Drab -- William Blair & Co. -- Analyst
Okay, thanks. That's all. Really helpful.
Operator
Your next question comes from Charley Bradly (sic-Charley Brady) from SunTrust. Your line is open.
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
Hey, thank guys. Charley Brady. Just on the capacity additions that you guys are doing and then moving up of production to optimize that. I'm wondering within the guidance, is there an embedded headwind from doing this type of stuff that maybe doesn't repeat as you go into '20?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, I'll start. This is Scott. So certainly, when you're starting up a new line or you're moving things from one plant to another, especially from continent to continent, there is a certain amount of friction or headwind you incur as a result of that. We've been doing that, we've been moving things back and forth and we're -- we feel like we've made great progress and we have a lot of new capacity coming online and the reduced cost you get from that will more than offset any friction, and so there is friction and obviously as production ramps up, you get better absorption and you have better cost. But we are -- as I said, the next two quarters we're going to have quite a bit of capacity coming online. And so a lot of the friction has been incurred and we see improvements coming very soon.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Charley, this is Tod, I'll just add a little bit more color. So we're at an inflection point that we're really pleased to be at right now. And so specifically when we look at this last two years and the success that our company has had, where we have grown over three years over 30% we knew that we would have some capacity constraints because we are coming out such of a -- of such a tough time. They turned out to be much greater than we thought we had and so we had to add to capacity expansion.
We have been sub optimizing our internal supply chain for quite some time now to make sure that we take care of our customers because that's very important to us, while our overall sales teams worldwide work the pricing-based issues, that also came forward based upon inflation. We're roughly through our pricing-based actions now, we're roughly through -- we got a couple of quarters here to get through all the capacity expansion that we need. And so the renormalization is standard work for us, it's work we are exceptional at and now we can dig-in and really attack the gross margin activity. And so, I look for good things going forward over the next several quarters as we renormalize and attack efficiency across our corporation.
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
That's great color. Thanks. And just another one for me. On the BOFA acquisition, you had it in the mix for a little while now. Can you just talk about where you guys are integration and maybe the opportunity there, I guess, particularly on the aftermarket side with those guys.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So the BOFA integration is going quite well, we won't take both the integration a 100% of the Donaldson remember that we still have 88% ownership share not 100%. And so that limits some of the things that we'll do longer-term, of course. But the technology-based sharing is going on and it's going very well. The overall strategic linkage of what we're trying to accomplish for the razor and razor-blade base models is going very well. And, the important thing to remember is that BOFA brought new markets to us and brought growing markets to us. And so consequently, we're very happy that there is not a lot of product overlap, but there's technology overlap and that's the importance of how one plus one equals three. And additionally, we're excited with the BOFA team, the leadership team that came through with BOFA has done an excellent job, they fit culturally wonderfully inside Donaldson and we're very proud to have them within the company.
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
Okay. Thank you.
Operator
Your next question comes from Richard Eastman from Baird. Your line is open.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Yes, good morning to all.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Good morning.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Tod, could we talk for a minute about IFS, I maybe missed what the projected growth rate would be there for all of '19. Did you mentioned low double-digits?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yes. That's right.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay, so low double-digits for the full year. And then, so maybe the math then in the second half, if you account for BOFA would be most of the growth. So is the core business in local currency, is there any growth projected for the second half there?
Brad Pogalz -- Director of Investor Relations
Rick, if you pull -- this is Brad, if you pull out BOFA, IFS sales in the back half are still forecast up in the high-singles. You get in the neighborhood of 7%, 8%. And that's with about three points of currency. So the back half growth is still reasonable.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah, remember we lap BOFA. And so consequently, when you look at that, what Brad talked about within the model with low-doubles is how you get there.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. And then, so is the backlog and order intake on the core IFS business both dust collection and compressed air. Are those -- are you comfortable there that we have -- have we seen any fall-off there at all, just relative to the PMIs and cap spending comments that you made earlier?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Within the compressed air side, we've not really seen appreciable fall-off. So we're pleased there, that's mostly a European-based business and has not seen really any appreciable change within the industrial air filtration or dust collection base business, we have seen, especially in December, kind of a new cautiousness within capital-based projects for sure. However, we did bake that within the guide that we are giving out today.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. And then I just want to ask one question around in the guide for the full year. One of the things that we did do was reduce our other income, meaningfully from $12 million to $16 million to $5 million to $9 million, I was a little bit curious because that other income number was actually about -- the JV number was actually about $8 million in '18. So we kind of forecast to step-up, we're now pulling that back out to be more like flat. And it just -- it strikes me that, that's -- that reduction literally is about $0.04 on the year, is really is kind of what you're cutting guide. So I'm curious, is that the cap related JV kind of how has that slowed down? And is there any broader implication for your business? I mean, is that a leading or lagging indicator?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah, this is Scott, Rick. So you have the numbers right, the other income came down, that was due to JV income, number one, FX losses number two. I would say the JVs experienced somewhat consistent what the company experienced. So we wanted to bring that down in the course of what we expected. The other two lines there been the low operating income, our interest and taxes. And so we brought our interest expense down 2%, we brought our tax up 30 basis points. So when you put those three together, it was more like a $0.01 drop. But -- so you're right the $0.04 in other income, then you made up three with the other two lines for a negative one. So we just wanted to get those more accurately forecasted based on finishing six months of the year.
Richard Eastman -- Robert W. Baird & Company -- Analyst
But my question kind of stands though is that, is the JV, the reduction in the JV income obviously is attributed to the JV profitability that's down now on a forecasted basis. Is that primarily Off-Road effect? Is that from the CAT JV which would be more Off-Road? Is that business slow down that much or --
Tod E. Carpenter -- Chairman, President and Chief Executive officer
I would remind you that we also have a JV in Saudi Arabia in the power industry, which all concerned more difficult. We have a JV in Indonesia with -- that really services a liquid-based component, which also turned more difficult, a lot of this is December. And then you also have the JV within CAT where we build the United States and Europe. So it's really more of a broad-based, JV-based comment with the industries that we have the JVs for.
Richard Eastman -- Robert W. Baird & Company -- Analyst
I see, OK. And one thing I wanted to just kind of double check as well, given maybe gas turbine in this quarter was a little bit stronger than anticipated, you didn't change the full year outlook. So at the end of the day, the second quarter was probably not the bottom in terms of revenue for gas turbine.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So yeah, I mean we pretty much held it consistent. So you started with the (ph) pretty small numbers, when you're talking about changes within gas turbine. Like we said, the large turbine we're walking away from and that's less than 10%. And therefore, that generally indicate that this year will be the bottom for GTS and we expect improvement going forward.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay. Just one last question, I promise you. The Off-Road business in Europe was quite strong. And was that -- could you give us some general feel for what regulatory impacts we're seeing there? And how does that play out over the next 12 months?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure, Rick. This is Tod. So overall within the Off-Road, we have a strong emissions business over there. And consequently, you have some pre-buys, as a result of some regulations that are coming on-board and they had a pre-buy, as a result of the Stage 5 regulation for larger diesel engines and that is -- would be the reason that drove that Off-Road bump-off if you will. Now, next calendar year, as of January the smaller base diesel engines have that same regulation change and so we would expect looking out there to be another lumpy bump, but that it would settle back down to more normal fee rates, but that's the reason for the strength.
Richard Eastman -- Robert W. Baird & Company -- Analyst
And our content on the large or small close enough to -- that we'll see that impact.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Yeah.
Richard Eastman -- Robert W. Baird & Company -- Analyst
Okay, awesome. Okay. Hey, thanks so much.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thanks.
Operator
Your next question comes from Laurence Alexander from Jefferies. Your line is open.
Nicholas Cecero -- Jefferies & Company -- Analyst
Hi, this is Nick Cecero on for Laurence. I guess is maybe you can comment a bit on specific raw materials you're seeing the most inflation. And I guess how you think it plays out in the back half of the year?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Sure. This is Tod. So the two that are most headwinds, most prevailing headwinds at the moment are clearly steel, if you remember, we had longer-term contracts with steel below market and so we have been adjusting on fiscal year to that step-up of steel-based headwind. So that would be one big -- we do see some moderation going forward as we finish out the balance of the fiscal year, meaning that it'll likely stay roughly within the level that it's at. So it would not provide further headwinds. But then the other one is media-based pulp and paper type of activities that go across our family of products to build media. And that one was pretty significant year-over-year on the gain. So those are the two that are primarily driving all raw material headwinds as we look forward.
Nicholas Cecero -- Jefferies & Company -- Analyst
And then in regards supply chain costs, is there any levers you can pull in order to offset them?
Tod E. Carpenter -- Chairman, President and Chief Executive officer
So we are pulling that, we we have one worldwide system now that we've talked about within our compass-based project that we implemented worldwide. We now have the ability and are doing a very good job at centralizing all the demand worldwide in order to gain some purchasing power. Our purchasing teams have been going after that for multiple quarters, they've had good success and we look forward for them to continue that type of process, that's a new way to go at this based upon new information that we can now gather across our supply chain. And so, we'll look for good work next fiscal year as well.
Nicholas Cecero -- Jefferies & Company -- Analyst
And then just one more if I may. You called out oil and gas slowdown in the US, I guess are you seeing any type of pickup as we move through the past couple of months and do you see any pickup in the back half of the year.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
No, we have -- within the guide that we've given, we have more of that normal seasonality that we see within the back half baked into that guide. So especially based upon, we saw the bump that come back -- it came back into January, we would say it's a little bit more business as usual. However, we do also need to point out the December pause.
Nicholas Cecero -- Jefferies & Company -- Analyst
Understood. Thank you very much.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you.
Operator
Your next question comes from George Godfrey from CL King. Your line is open.
George Godfrey -- C.L. King & Associates -- Analyst
Thank you. Two questions. One is CapEx this year in the range Tod you've given, looks like it's just under or at 5% of revenue. Do you think that level of investment comes down as a percentage of revenue as we head into 2020? Or you need additional capacity and buildup of the projects you highlighted earlier to keep the CapEx at a higher level than what it's been historically?
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yes. So -- this is Scott. So we see that is going on for this year and next year and then coming down. So we will have some projects that we'll be finishing this year that will go into next year. So we're going to have an elevated level next year and then we see it coming back down.
George Godfrey -- C.L. King & Associates -- Analyst
Got it. Okay. And then my second question is, if I look at where I think net debt leverage ratio is going to be at the end of this year, plus the free cash flow, you're going to generate Q3 and Q4, probably net leverage is below 1. So my question is how aggressive do you get with share buyback or acquisitions at the leverage ratio does fall below 1.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. So I mean, we maintained our guidance at 2% per share buyback, we're sitting at 1.6% repurchase as of the end of this quarter. The current debt-to-EBITDA ratio sits at 1.1. Every year we take kind of a holistic view of our forward-looking, as well as our backward looking return to shareholders and we assess our capital deployment strategy and we go year-by-year with that, with kind of a longer-term view. So we will continue to do that in conjunction with our planning process and review with our Board and I'll let Tod talk about acquisitions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Relative to acquisitions, acquisitions are part of our strategy, we're happy to have done five acquisitions in the last three years. We talk about the Bolt-on's of all of those and their strategic importance to each of the business units. We continue to have it as part of the strategy. We have a nice robust process now, then I would suggest has good opportunities, they are all strategic, we're very selective. We're also a disciplined buyer and nothing has changed really for us in that regard. We're also very happy to have a strong balance sheet that allows us to have this as part of our strategy. So really nothing appreciably changes for us strategically in the way that you look at our actions of acquisitions.
George Godfrey -- C.L. King & Associates -- Analyst
Okay. And so let me just ask one -- I'll push on that point a little bit more. And I recognize you have a very strong balance sheet methodical. When does a strong balance sheet go to inefficient balance sheet in that the leverage, you just not taken advantage of the leverage capability that Donaldson has. And I guess, I'm trying to get it.
Scott J. Robinson -- Senior Vice President, Chief Financial Officer
Yeah. That's a third question, I promise to consider that when we do our plan for next year, that's something we think about, and we think about the opportunities there in front of us and what we know that's coming. And we look at our return, we've had a very consistent, we've been increasing our dividend for 20 years, we have a very consistent share buyback and I would expect that those things will continue. I would not expect this to pile all sorts of cash up on the balance sheet. So we have to be thoughtful with the capital we deploy and deploy that in an effective way. And I think the cash flows that we generate are relatively consistent and predictable and so we feel good about that and that gives us a pretty solid basis from which to go forward.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
And I also want to point out that we're very proud of the organic growth that we've had as a result of our razor-to-sell razor-blade strategy and bringing forth technology over the last three years and a strong balance sheet has allowed us to answer all of those calls for our customers because the demand ramped-up even faster than we had thought. So we were able to really execute that without additional borrowing et cetera and self fund while also continuing on our acquisition-based strategy and we look to continue to execute on that. So overall, as we look at our company on our strategy, our strong balance sheet is not just about acquisitions, it's also about being able to execute internally on the organic side and we're pleased to be able to have done that very quickly.
George Godfrey -- C.L. King & Associates -- Analyst
Understood. Tod, Scott and Brad, thank you for taking my questions.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
Thank you.
Operator
There are no further questions at this time, I now turn the call back to Tod Carpenter.
Tod E. Carpenter -- Chairman, President and Chief Executive officer
As we conclude today's call, I want to remind everyone that we will be hosting an Investors Day on April 9th. We're looking forward to providing a deep dive into our strategic long-term priorities, so please reach out to Brad with any questions. As always, we appreciate your time today and your interest in Donaldson Company. Thank you and goodbye.
Operator
This concludes today's conference call. You may now disconnect.
Duration: 56 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
Nathan Jones -- Stifel, Nicolaus & Company -- Analyst
Brian Drab -- William Blair & Co. -- Analyst
Charley Brady -- SunTrust Robinson Humphrey -- Analyst
Richard Eastman -- Robert W. Baird & Company -- Analyst
Nicholas Cecero -- Jefferies & Company -- Analyst
George Godfrey -- C.L. King & Associates -- 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 2019 Earnings Conference Call March 06, 2019 , 10:00 a.m. King & Associates -- Analyst More DCI analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. We have connected dust collectors in the field and we began offering a subscription service last quarter that gathers real-time data, applies analytics in the cloud and relays insights to the operator through desktop or mobile applications. | Donaldson Co (NYSE: DCI) Q2 2019 Earnings Conference Call March 06, 2019 , 10:00 a.m. King & Associates -- Analyst More DCI analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. While the adoption of this standard had a small impact on sales and profit dollars, it effectively diluted second quarter gross and operating margins, including 10 basis points of dilution from revenue recognition, second quarter operating margin was flat with the prior year, reflecting strong expense leverage offset by a gross margin decline. | Donaldson Co (NYSE: DCI) Q2 2019 Earnings Conference Call March 06, 2019 , 10:00 a.m. King & Associates -- Analyst More DCI analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Currency translation was another headwind for sales with a larger than expected impact of 3% in the quarter, including the increased impact from currency and the slowdown in December, we still expect strong full year sales growth of 5% to 9% or 8% to 12% without currency. | Donaldson Co (NYSE: DCI) Q2 2019 Earnings Conference Call March 06, 2019 , 10:00 a.m. King & Associates -- Analyst More DCI analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Overall, our forecast for the back half of 2019 includes strong top line growth in businesses where we are making strategic investments, sequential improvement in sales, operating margin and EPS, incremental margin in the high 20% range and disciplined capital deployment that reflects investment in the company and returning cash to shareholders. | 252889f4-a59e-4848-b8e8-f415a02511f6 |
709821.0 | 2019-03-05 00:00:00 UTC | Pre-Market Earnings Report for March 6, 2019 : DLTR, DCI, INXN, TSG, THO, ANF, CHS, GLYC, AMRC, MEET, OPTN, WHF | DCI | https://www.nasdaq.com/articles/pre-market-earnings-report-march-6-2019-dltr-dci-inxn-tsg-tho-anf-chs-glyc-amrc-meet-optn | nan | nan | The following companies are expected to repor t earnings prior to market open on 03/06/2019. Visit our Earnings Calendar for a full list of expected earnings releases.
Dollar Tree, Inc. ( DLTR ) is reporting for the quarter ending January 31, 2019. The discount retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.92. This value represents a 1.59% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DLTR is 17.48 vs. an industry ratio of 17.20, 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, 2019. The pollution control company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.51. This value represents a 18.60% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 21.54 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry.
InterXion Holding N.V. ( INXN ) is reporting for the quarter ending December 31, 2018. The internet services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.18. This value represents a 10.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for INXN is 94.60 vs. an industry ratio of 1.10, implying that they will have a higher earnings growth than their competitors in the same industry.
The Stars Group Inc. ( TSG ) is reporting for the quarter ending December 31, 2018. The gaming company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.52. This value represents a 3.70% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for TSG is 7.23 vs. an industry ratio of 20.30.
Thor Industries, Inc. ( THO ) is reporting for the quarter ending January 31, 2019. The building company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.88. This value represents a 54.17% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for THO is 11.64 vs. an industry ratio of 16.10.
Abercrombie & Fitch Company ( ANF ) is reporting for the quarter ending January 31, 2019. The retail (shoe) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.13. This value represents a 18.12% 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 83.33%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for ANF is 22.73 vs. an industry ratio of 17.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Chico's FAS, Inc. ( CHS ) is reporting for the quarter ending January 31, 2019. The retail (shoe) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.09. This value represents a 181.82% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for CHS is 17.24 vs. an industry ratio of 17.30.
GlycoMimetics, Inc. ( GLYC ) is reporting for the quarter ending December 31, 2018. The drug company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.30. This value represents a 11.11% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 37 days. Zacks Investment Research reports that the 2018 Price to Earnings ratio for GLYC is -10.28 vs. an industry ratio of -14.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Ameresco, Inc. ( AMRC ) is reporting for the quarter ending December 31, 2018. The alternative energy company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.16. This value represents a 66.67% decrease compared to the same quarter last year. In the past year AMRC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 53.33%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for AMRC is 23.03 vs. an industry ratio of 29.50.
The Meet Group, Inc. ( MEET ) is reporting for the quarter ending December 31, 2018. The internet software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.08. This value represents a 20.00% decrease compared to the same quarter last year. In the past year MEET has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 16.67%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for MEET is 25.26 vs. an industry ratio of -0.80, implying that they will have a higher earnings growth than their competitors in the same industry.
OptiNose, Inc. ( OPTN ) is reporting for the quarter ending December 31, 2018. The drug company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.84. This value represents a 31.25% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 59 days. Zacks Investment Research reports that the 2018 Price to Earnings ratio for OPTN is -2.82 vs. an industry ratio of -14.90, implying that they will have a higher earnings growth than their competitors in the same industry.
WhiteHorse Finance, Inc. ( WHF ) is reporting for the quarter ending December 31, 2018. The financial services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.36. This value represents a 9.09% increase compared to the same quarter last year. WHF missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -8.33%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for WHF is 9.28 vs. an industry ratio of 10.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Company, Inc. ( DCI ) is reporting for the quarter ending January 31, 2019. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 21.54 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. The discount retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.92. | Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 21.54 vs. an industry ratio of 17.00, 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, 2019. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DLTR is 17.48 vs. an industry ratio of 17.20, 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, 2019. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 21.54 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2019 Price to Earnings ratio for ANF is 22.73 vs. an industry ratio of 17.30, 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, 2019. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 21.54 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. In the past year ANF has beat the expectations every quarter. | 1245b87b-0b91-4a70-876f-ad0c46fdabaa |
709822.0 | 2019-02-13 00:00:00 UTC | DCI Crosses Above Key Moving Average Level | DCI | https://www.nasdaq.com/articles/dci-crosses-above-key-moving-average-level-2019-02-13 | nan | nan | In trading on Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.35, changing hands as high as $49.59 per share. Donaldson Co. Inc. shares are currently trading up about 1.4% 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.58.
Click here to find out which 9 other dividend stocks recently crossed above 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.
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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.35, changing hands as high as $49.59 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.58. Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.35, changing hands as high as $49.59 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.58. Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.35, changing hands as high as $49.59 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.58. Click here to find out which 9 other dividend stocks recently crossed above 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 Wednesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $49.35, changing hands as high as $49.59 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 $40.27 per share, with $59.43 as the 52 week high point - that compares with a last trade of $49.58. Click here to find out which 9 other dividend stocks recently crossed above 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. | 372d7c76-547f-4bdc-b7d3-4437159bcd1a |
709823.0 | 2019-02-13 00:00:00 UTC | Here's Why You Should Steer Clear of Donaldson (DCI) Now | DCI | https://www.nasdaq.com/articles/heres-why-you-should-steer-clear-of-donaldson-dci-now-2019-02-13 | nan | nan | Donaldson Company, Inc.DCI has been struggling with the headwinds that have marred its operational performance over the past few quarters. We expect that a continuous rise in operating expenses, among other factors, will hinder the company's growth.
It's not surprising that the stock has put up a dismal show in the recent times. In the past three months, Donaldson has lost 9.5%, almost in line with the industry 's decline of 9.4%.
Factors at Play
Rising cost of sales has been a major cause of concern for Donaldson over the past few quarters. Notably, the metric jumped 16.1% year over year in fiscal 2018 (ended July 2018). Also, it escalated 10.1% in first-quarter fiscal 2019 (ended October 2019). Price inflation in some major raw materials, increased freight expenses as well as higher pension settlement disbursement primarily led to the rise. Notably, Donaldson expects that continued material price inflation and soaring freight charges will hurt its gross profit by $30 million in fiscal 2019 (ending July 2019).
Also, on an Enterprise Value/EBITDA (TTM) basis, the company's shares look overvalued compared to the industry with respectively tallies of 11.9x and 9.1x for the past three-month period. This makes us cautious about the stock.
Moreover, weakening Gas Turbine Systems (GTS) business remains a major cause of concern for the company. Notably, revenues of the GTS business fell 3.1% year over year in the fiscal first quarter, primarily on account of decline in large turbine projects. As a matter of fact, GTS sales are predicted to dip in high single-digit in fiscal 2019.
Further, over the past couple of months, the Zacks Consensus Estimate for fiscal 2020 (ending July 2020) earnings moved south from $2.61 to $2.60 but remained stable for fiscal 2019.
Stocks to Consider
Some better-ranked stocks from the same industry are Heritage-Crystal Clean, Inc. HCCI , Sharps Compliance Corp SMED and Tetra Tech, Inc. TTEK . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Heritage-Crystal Clean's earnings surprise in the las t report ed quarter was 8.00%.
Sharps Compliance's pulled off an avera ge earnings surprise of 66.67% in the last reported quarter.
Tetra Tech's earnings surprise in the last reported quarter was 12.90%.
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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 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 has been struggling with the headwinds that have marred its operational performance over the past few quarters. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Heritage-Crystal Clean, Inc. (HCCI): Free Stock Analysis Report Sharps Compliance Corp (SMED): Get Free Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price inflation in some major raw materials, increased freight expenses as well as higher pension settlement disbursement primarily led to the rise. | Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Heritage-Crystal Clean, Inc. (HCCI): Free Stock Analysis Report Sharps Compliance Corp (SMED): Get Free Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI has been struggling with the headwinds that have marred its operational performance over the past few quarters. Notably, Donaldson expects that continued material price inflation and soaring freight charges will hurt its gross profit by $30 million in fiscal 2019 (ending July 2019). | Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Heritage-Crystal Clean, Inc. (HCCI): Free Stock Analysis Report Sharps Compliance Corp (SMED): Get Free Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI has been struggling with the headwinds that have marred its operational performance over the past few quarters. Further, over the past couple of months, the Zacks Consensus Estimate for fiscal 2020 (ending July 2020) earnings moved south from $2.61 to $2.60 but remained stable for fiscal 2019. | Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Heritage-Crystal Clean, Inc. (HCCI): Free Stock Analysis Report Sharps Compliance Corp (SMED): Get Free Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI has been struggling with the headwinds that have marred its operational performance over the past few quarters. Factors at Play Rising cost of sales has been a major cause of concern for Donaldson over the past few quarters. | 3dcfaeae-b7a3-4a28-a878-84e9342bc905 |
709824.0 | 2019-02-07 00:00:00 UTC | PFM's Underlying Holdings Imply 10% Gain Potential | DCI | https://www.nasdaq.com/articles/pfms-underlying-holdings-imply-10-gain-potential-2019-02-07 | 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 Dividend Achievers ETF (Symbol: PFM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $28.96 per unit.
With PFM trading at a recent price near $26.40 per unit, that means that analysts see 9.70% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PFM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), MDU Resources Group Inc (Symbol: MDU), and Smith (A O) Corp (Symbol: AOS). Although DCI has traded at a recent price of $48.15/share, the average analyst target is 12.15% higher at $54.00/share. Similarly, MDU has 10.94% upside from the recent share price of $25.24 if the average analyst target price of $28.00/share is reached, and analysts on average are expecting AOS to reach a target price of $55.00/share, which is 10.55% above the recent price of $49.75. Below is a twelve month price history chart comparing the stock performance of DCI, MDU, and AOS:
Below is a summary table of the current analyst target prices discussed above:
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.
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 $48.15/share, the average analyst target is 12.15% higher at $54.00/share. Below is a twelve month price history chart comparing the stock performance of DCI, MDU, and AOS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PFM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), MDU Resources Group Inc (Symbol: MDU), and Smith (A O) Corp (Symbol: AOS). | Three of PFM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), MDU Resources Group Inc (Symbol: MDU), and Smith (A O) Corp (Symbol: AOS). Although DCI has traded at a recent price of $48.15/share, the average analyst target is 12.15% higher at $54.00/share. Below is a twelve month price history chart comparing the stock performance of DCI, MDU, and AOS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Below is a twelve month price history chart comparing the stock performance of DCI, MDU, and AOS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PFM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), MDU Resources Group Inc (Symbol: MDU), and Smith (A O) Corp (Symbol: AOS). Although DCI has traded at a recent price of $48.15/share, the average analyst target is 12.15% higher at $54.00/share. | Three of PFM's underlying holdings with notable upside to their analyst target prices are Donaldson Co. Inc. (Symbol: DCI), MDU Resources Group Inc (Symbol: MDU), and Smith (A O) Corp (Symbol: AOS). Although DCI has traded at a recent price of $48.15/share, the average analyst target is 12.15% higher at $54.00/share. Below is a twelve month price history chart comparing the stock performance of DCI, MDU, and AOS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | b66b241f-a1b9-43d6-b02a-d6d3db217b80 |
709825.0 | 2019-01-28 00:00:00 UTC | Daily Dividend Report: MPC, YUM, WBA, RGA, DCI | DCI | https://www.nasdaq.com/articles/daily-dividend-report-mpc-yum-wba-rga-dci-2019-01-28 | nan | nan | Marathon Petroleum ( MPC ) has declared a dividend of $0.53 per share on common stock. The dividend is payable March 11, 2019, to shareholders of record as of the close of business February 20, 2019.
Yum! Brands ( YUM ) approved a quarterly cash dividend of $0.42, representing a 17% increase in the company's quarterly dividend. The dividend will be distributed March 8, 2019 to shareholders of record at the close of business on February 14, 2019.
Walgreens Boots Alliance ( WBA ) announced that its board of directors has declared a regular quarterly dividend of 44 cents per share, unchanged from the previous quarter and an increase of 10 percent over the year-ago quarter. The dividend is payable March 12, 2019 to stockholders of record as of February 15, 2019.
Reinsurance Group of America declared a regular dividend of $0.60, payable February 28 to shareholders of record as of February 7.
Donaldson Company ( DCI ) announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable February 28, 2019, to shareholders of record on February 11, 2019.
VIDEO: Daily Dividend Report: MPC, YUM, WBA, RGA, 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Donaldson Company ( DCI ) announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable February 28, 2019, to shareholders of record on February 11, 2019. VIDEO: Daily Dividend Report: MPC, YUM, WBA, RGA, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Marathon Petroleum ( MPC ) has declared a dividend of $0.53 per share on common stock. | Donaldson Company ( DCI ) announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable February 28, 2019, to shareholders of record on February 11, 2019. VIDEO: Daily Dividend Report: MPC, YUM, WBA, RGA, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Walgreens Boots Alliance ( WBA ) announced that its board of directors has declared a regular quarterly dividend of 44 cents per share, unchanged from the previous quarter and an increase of 10 percent over the year-ago quarter. | Donaldson Company ( DCI ) announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable February 28, 2019, to shareholders of record on February 11, 2019. VIDEO: Daily Dividend Report: MPC, YUM, WBA, RGA, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Reinsurance Group of America declared a regular dividend of $0.60, payable February 28 to shareholders of record as of February 7. | Donaldson Company ( DCI ) announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable February 28, 2019, to shareholders of record on February 11, 2019. VIDEO: Daily Dividend Report: MPC, YUM, WBA, RGA, DCI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Brands ( YUM ) approved a quarterly cash dividend of $0.42, representing a 17% increase in the company's quarterly dividend. | 0478301a-2376-46ad-aa52-6b4f670c1d8d |
709826.0 | 2019-01-27 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 1/27/2019 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-1272019-2019-01-27 | 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.
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.
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.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
G-III APPAREL GROUP, LTD. ( GIII ) is a small-cap value 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: G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women's suits and women's performance wear, as well as women's handbags, footwear, small leather goods, cold weather accessories and luggage. The Company's owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.
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.
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 435.86% vs. 168.06% 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 an investment research service 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.
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. 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 G-III APPAREL GROUP, LTD. ( GIII ) is a small-cap value stock in the Apparel/Accessories industry. | 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's segments include Engine Products, Industrial Products and Corporate. 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. The Company's segments include Engine Products, Industrial Products and Corporate. 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 435.86% vs. 168.06% for the S&P 500. | 89bed755-8ed3-4a97-af57-99e6778bc1a7 |
709827.0 | 2019-01-25 00:00:00 UTC | TTEK or DCI: Which Is the Better Value Stock Right Now? | DCI | https://www.nasdaq.com/articles/ttek-or-dci%3A-which-is-the-better-value-stock-right-now-2019-01-25 | nan | nan | Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK) and Donaldson (DCI). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tetra Tech has a Zacks Rank of #2 (Buy), while Donaldson has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TTEK currently has a forward P/E ratio of 18.07, while DCI has a forward P/E of 19.60. We also note that TTEK has a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DCI currently has a PEG ratio of 1.70.
Another notable valuation metric for TTEK is its P/B ratio of 2.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DCI has a P/B of 7.04.
Based on these metrics and many more, TTEK holds a Value grade of B, while DCI has a Value grade of C.
TTEK has seen stronger estimate revision activity and sports more attractive valuation metrics than DCI, so it seems like value investors will conclude that TTEK is the superior option right now.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK) and Donaldson (DCI). Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. TTEK currently has a forward P/E ratio of 18.07, while DCI has a forward P/E of 19.60. | Based on these metrics and many more, TTEK holds a Value grade of B, while DCI has a Value grade of C. TTEK has seen stronger estimate revision activity and sports more attractive valuation metrics than DCI, so it seems like value investors will conclude that TTEK is the superior option right now. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK) and Donaldson (DCI). | Based on these metrics and many more, TTEK holds a Value grade of B, while DCI has a Value grade of C. TTEK has seen stronger estimate revision activity and sports more attractive valuation metrics than DCI, so it seems like value investors will conclude that TTEK is the superior option right now. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK) and Donaldson (DCI). | DCI currently has a PEG ratio of 1.70. Based on these metrics and many more, TTEK holds a Value grade of B, while DCI has a Value grade of C. TTEK has seen stronger estimate revision activity and sports more attractive valuation metrics than DCI, so it seems like value investors will conclude that TTEK is the superior option right now. Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK) and Donaldson (DCI). | 24fc685f-f112-4ed3-89e4-86f4267aa8c8 |
709828.0 | 2019-01-09 00:00:00 UTC | TTEK or DCI: Which Is the Better Value Stock Right Now? | DCI | https://www.nasdaq.com/articles/ttek-or-dci%3A-which-is-the-better-value-stock-right-now-2019-01-09 | nan | nan | Investors looking for stocks in the Pollution Control sector might want to consider either Tetra Tech (TTEK) or Donaldson (DCI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Tetra Tech and Donaldson are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TTEK currently has a forward P/E ratio of 18.22, while DCI has a forward P/E of 18.59. We also note that TTEK has a PEG ratio of 1.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DCI currently has a PEG ratio of 1.62.
Another notable valuation metric for TTEK is its P/B ratio of 3. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DCI has a P/B of 6.67.
These metrics, and several others, help TTEK earn a Value grade of B, while DCI has been given a Value grade of C.
TTEK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TTEK is likely the superior value option right now.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking for stocks in the Pollution Control sector might want to consider either Tetra Tech (TTEK) or Donaldson (DCI). Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. TTEK currently has a forward P/E ratio of 18.22, while DCI has a forward P/E of 18.59. | Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors looking for stocks in the Pollution Control sector might want to consider either Tetra Tech (TTEK) or Donaldson (DCI). Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. | Investors looking for stocks in the Pollution Control sector might want to consider either Tetra Tech (TTEK) or Donaldson (DCI). These metrics, and several others, help TTEK earn a Value grade of B, while DCI has been given a Value grade of C. TTEK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. | DCI currently has a PEG ratio of 1.62. These metrics, and several others, help TTEK earn a Value grade of B, while DCI has been given a Value grade of C. TTEK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Investors looking for stocks in the Pollution Control sector might want to consider either Tetra Tech (TTEK) or Donaldson (DCI). | d98b0554-9f5c-47fe-b3f7-5c1bbcc86c9b |
709829.0 | 2019-01-08 00:00:00 UTC | Donaldson (DCI) Displays Bright Prospects, Risks Persist | DCI | https://www.nasdaq.com/articles/donaldson-dci-displays-bright-prospects-risks-persist-2019-01-08 | nan | nan | On Jan 8, we issued an updated research report on Donaldson Company, Inc.DCI .
In the past six months, this Zacks Rank #3 (Hold) stock has lost 5.7%, narrower than industry 's decline of 7.3%.
Existing Scenario
Donaldson expects strength in Off-Road, On-Road and Aftermarket business to drive revenues of its Engine Products segment, going forward. Also, the acquisition of BOFA International LTD (closed on Oct 22, 2018) is likely to strengthen the company's Industrial Products segment. Donaldson anticipates its year-over-year sales growth to lie between 6% and 10% in fiscal 2019 (ending July 2019).
Also, Donaldson is poised to boost up its competency on the back of its ongoing capital expenditure and innovation investments. In this regard, its capital expenditure totaled $28.2 million in first-quarter fiscal 2019 (ended October 2018), up 41.7% year over year. These investments were made to increase the company's existing production capacity, support future demand of its fast-growing products and enhance its ecommerce business set-up.
Moreover, Donaldson's successful product launches like LifeTec filters and new program wins, particularly in China, are likely to drive its revenues growth trajectory.
However, weakening Gas Turbine Systems (GTS) business remains a major cause of concern for the company. Notably, revenues of the GTS business fell 3.1% year over year in the fiscal first quarter, primarily on account of decline in large turbine projects. As a matter of fact, GTS sales are predicted to dip in high single-digit in fiscal 2019.
This apart, increase in costs have been a major cause of concern for the company over the past few quarters. For instance, Donaldson's cost of sales escalated 10.1% in fiscal first quarter.
Stocks to Consider
Some better-ranked stocks from the same space are Atkore International Group Inc. ATKR , Enersys ENS and iRobot Corp. IRBT . While Atkore International and Enersys sport a Zacks Rank #1 (Strong Buy), iRobot carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 27.58%.
Enersys outpaced estimates thrice in the preceding four quarters, the avera ge earnings surprise being 2.83%.
iRobot exceeded estimates in each of the preceding four quarters, the average positive earnings surprise being 102.97%.
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Enersys (ENS): 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Jan 8, we issued an updated research report on Donaldson Company, Inc.DCI . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Existing Scenario Donaldson expects strength in Off-Road, On-Road and Aftermarket business to drive revenues of its Engine Products segment, going forward. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. On Jan 8, we issued an updated research report on Donaldson Company, Inc.DCI . Stocks to Consider Some better-ranked stocks from the same space are Atkore International Group Inc. ATKR , Enersys ENS and iRobot Corp. IRBT . | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. On Jan 8, we issued an updated research report on Donaldson Company, Inc.DCI . While Atkore International and Enersys sport a Zacks Rank #1 (Strong Buy), iRobot carries a Zacks Rank #2 (Buy). | On Jan 8, we issued an updated research report on Donaldson Company, Inc.DCI . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson anticipates its year-over-year sales growth to lie between 6% and 10% in fiscal 2019 (ending July 2019). | 3a92acf8-b7a1-4a6e-95eb-6be9974bdf54 |
709830.0 | 2019-01-03 00:00:00 UTC | Why Is Donaldson (DCI) Down 16.1% Since Last Earnings Report? | DCI | https://www.nasdaq.com/articles/why-is-donaldson-dci-down-16.1-since-last-earnings-report-2019-01-03 | nan | nan | A month has gone by since the last earnings report for Donaldson (DCI). Shares have lost about 16.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Donaldson due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Donaldson Misses on Q1 Earnings, Tweaks EPS View
Donaldson reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same.
Earnings & Revenues
Quarterly adjusted earnings came in at 56 cents per share, up 21.7% year over year. However, the bottom line missed the Zacks Consensus Estimate by a penny.
The company generated revenues of $701.4 million in the reported quarter, up 8.8% from the year-ago level. However, the top line marginally surpassed the Zacks Consensus Estimate of 700 million.
Segmental Break-Up
Quarterly revenues from the Engine Products segment came in at $480.9 million, up 8.8% year over year. Industrial Products segment's revenues also improved 8.8% year over year to $220.5 million.
Costs & Margins
Cost of sales in the reported quarter was $463 million, up 10.1% from the year-ago quarter. Adjusted gross margin came in at 34%, down 80 basis points (bps) year over year.
Aggregate operating expenses in the fiscal first quarter were $139.7 million, up 3.4% year over year. Adjusted operating margin improved 30 bps year over year to 14.1% in the reported quarter.
Balance Sheet & Cash Flow
Exiting fiscal first quarter, Donaldson had cash and cash equivalents worth $199.9 million, down from $204.7 million recorded as of Jul 31, 2018. Long-term debt came in at $630.6 million, up from $499.6 million recorded at fiscal 2018-end.
In first-quarter fiscal 2019, the company generated $63.3 million cash from operating activities, down roughly 1% from the year-ago period. Capital expenditure in the reported quarter came in at $28.2 million, up 41.7% year over year.
Outlook
Donaldson perceives that ongoing contract wins, market share gains and favourable end-market conditions will aid it in boosting revenues and profitability in the quarters ahead. Moreover, the acquisition of BOFA International is expected strengthen the Industrial business of the company. The company plans to offset the impact of material price inflation with its ongoing pricing actions.
Based on the existing market conditions, Donaldson now anticipates earnings in the range of $2.31-$2.45 per share for fiscal 2019 (ending July 2019), reflecting an increment of 2 cents from the prior view. The BOFA buyout is expected to boost the company's sales by nearly 1% year over year in fiscal 2019. However, eliminating this impact, its revenue view is consistent with the prior guidance of 6-10%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Donaldson has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Donaldson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A month has gone by since the last earnings report for Donaldson (DCI). Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Donaldson (DCI). Donaldson Misses on Q1 Earnings, Tweaks EPS View Donaldson reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. | A month has gone by since the last earnings report for Donaldson (DCI). Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Misses on Q1 Earnings, Tweaks EPS View Donaldson reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. | A month has gone by since the last earnings report for Donaldson (DCI). Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Misses on Q1 Earnings, Tweaks EPS View Donaldson reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. | b7551a57-0451-4832-9ee1-eb5cf2278c0f |
709831.0 | 2018-12-18 00:00:00 UTC | Cintas (CTAS) to Report Q2 Earnings: What's in the Cards? | DCI | https://www.nasdaq.com/articles/cintas-ctas-to-report-q2-earnings%3A-whats-in-the-cards-2018-12-18 | nan | nan | Cintas CorporationCTAS is slated to report second-quarter fiscal 2019 (ended November 2018) results on Dec 20, after the market closes .
The company pulled off a positive average earnings surprise of 7.22% over the preceding four quarters. Notably, Cintas' first-quarter fiscal 2019 (ended August 2018) adjusted earnings of $1.93 per share outpaced the Zacks Consensus Estimate of $1.78 per share by 8.4%.
Let's see how things are shaping up prior to this announcement.
Factors at Play
Cintas believes efforts undertaken to enhance its product portfolio and improve customer relationships will drive the company's organic revenue growth in the upcoming quarters of fiscal 2019 (ending May 2019). Additionally, strength in the National Account, Fire and Uniform Direct Sale businesses will likely support the upswing, moving ahead. The company also expects that the recently-made business acquisitions will support its top-line growth in the quarters ahead.
The Zacks Consensus Estimate for revenue of the company's Uniform Rental and Facility Services, First Aid and Safety Services and All Other business segments are currently pegged at $1,380 million, $151 million and $166 million for second-quarter fiscal 2019, higher than the respective tallies of $1,308 million, $139 million and $159 million recorded in the year-ago quarter.
Cintas anticipates that stellar revenues, lower commission expense (on account of Accounting Standard Update 2014-09 adoption), and reduced corporate tax expenses (due to the implementation of December 2017 Tax Cuts and Jobs Act) will strengthen its profitability in the near term.
The Zacks Consensus Estimate for gross profit in second-quarter fiscal 2019 for Uniform Rental and Facility Services, First Aid and Safety Services and All Other business segments are currently pegged at $621 million, $72 million and $71 million, higher than the respective tallies of $584 million, $65 million and $67 million recorded in the prior-year period.
However, rising stock-based compensation expenses (associated with the change in retirement policy), integration expenses related to G&K Services Inc. acquisition (March 2017) and cost relating to the implementation of new enterprise resource planning system might hurt Cintas' margins in quarters-to-be-reported. Moreover, material cost inflation (due to tariffs levied over U.S. imports) and soaring wage costs might weigh over the company's near-term profitability.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
That is not the case here as we will see below.
Esrnings ESP: Cintas has an Earnings ESP of 0.00%. This is because the Zacks Consensus Estimate for the company's earnings for the fiscal second quarter is in line with the Most Accurate Estimate of $1.72 per share.
Cintas Corporation Price and EPS Surprise
Cintas Corporation Price and EPS Surprise | Cintas Corporation Quote
Zacks Rank: Cintas' favorable Zacks Rank #2, when combined with an Earnings ESP of 0.00%, makes surprise predictions inconclusive.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the Zacks Industrial Products sectorthat you may want to consider, as our model shows that these have the right combination of elements to come up with an earnings beat:
Flowserve Corporation FLS has a Zacks Rank #2 and an Earnings ESP of +2.85%. You can see the complete list of today's Zacks #1 Rank stocks here .
HD Supply Holdings, Inc. HDS has a Zacks Rank #2 and an Earnings ESP of +1.57%.
Donaldson Company, Inc. DCI has a Zacks Rank #3 and an Earnings ESP of +0.49%.
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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 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 has a Zacks Rank #3 and an Earnings ESP of +0.49%. Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report HD Supply Holdings, Inc. (HDS): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play Cintas believes efforts undertaken to enhance its product portfolio and improve customer relationships will drive the company's organic revenue growth in the upcoming quarters of fiscal 2019 (ending May 2019). | Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report HD Supply Holdings, Inc. (HDS): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI has a Zacks Rank #3 and an Earnings ESP of +0.49%. The Zacks Consensus Estimate for revenue of the company's Uniform Rental and Facility Services, First Aid and Safety Services and All Other business segments are currently pegged at $1,380 million, $151 million and $166 million for second-quarter fiscal 2019, higher than the respective tallies of $1,308 million, $139 million and $159 million recorded in the year-ago quarter. | Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report HD Supply Holdings, Inc. (HDS): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI has a Zacks Rank #3 and an Earnings ESP of +0.49%. The Zacks Consensus Estimate for revenue of the company's Uniform Rental and Facility Services, First Aid and Safety Services and All Other business segments are currently pegged at $1,380 million, $151 million and $166 million for second-quarter fiscal 2019, higher than the respective tallies of $1,308 million, $139 million and $159 million recorded in the year-ago quarter. | Donaldson Company, Inc. DCI has a Zacks Rank #3 and an Earnings ESP of +0.49%. Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report HD Supply Holdings, Inc. (HDS): Free Stock Analysis Report To read this article on Zacks.com click here. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. | 4536bfe5-e555-4bee-ace9-9c6435f47b6a |
709832.0 | 2018-12-07 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for December 10, 2018 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc-dci-ex-dividend-date-scheduled-december-10-2018-2018-12-07 | nan | nan | Donaldson Company, Inc. ( DCI ) will begin trading ex-dividend on December 10, 2018. A cash dividend payment of $0.19 per share is scheduled to be paid on December 21, 2018. 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 $51.42, the dividend yield is 1.48%.
The previous trading day's last sale of DCI was $51.42, representing a -13.48% decrease from the 52 week high of $59.43 and a 18.62% increase over the 52 week low of $43.35.
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 $1.47. Zacks Investment Research reports DCI's forecasted earnings growth in 2019 as 19.64%, compared to an industry average of 14.3%.
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.
Interested in gaining exposure to DCI through an Exchange Traded Fund [ETF]?
The following ETF(s) have DCI as a top-10 holding:
VanEck Vectors Environmental Services ETF ( EVX )
First Trust Industrials AlphaDEX ( FXR ).
The top-performing ETF of this group is EVX with an decrease of -2.83% over the last 100 days. It also has the highest percent weighting of DCI at 3.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. 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 2019 as 19.64%, compared to an industry average of 14.3%. | DCI's current earnings per share, an indicator of a company's profitability, is $1.47. 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 begin trading ex-dividend on December 10, 2018. | Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. The following ETF(s) have DCI as a top-10 holding: VanEck Vectors Environmental Services ETF ( EVX ) First Trust Industrials AlphaDEX ( FXR ). | DCI's current earnings per share, an indicator of a company's profitability, is $1.47. The following ETF(s) have DCI as a top-10 holding: VanEck Vectors Environmental Services ETF ( EVX ) First Trust Industrials AlphaDEX ( FXR ). Donaldson Company, Inc. ( DCI ) will begin trading ex-dividend on December 10, 2018. | e47180be-37d1-42a8-ab64-5bbd78356ec6 |
709833.0 | 2018-12-06 00:00:00 UTC | Ex-Dividend Reminder: Donaldson, Genpact and FedEx | DCI | https://www.nasdaq.com/articles/ex-dividend-reminder-donaldson-genpact-and-fedex-2018-12-06 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , on 12/10/18, Donaldson Co. Inc. (Symbol: DCI), Genpact Ltd (Symbol: G), and FedEx Corp (Symbol: FDX) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. will pay its quarterly dividend of $0.19 on 12/21/18, Genpact Ltd will pay its quarterly dividend of $0.075 on 12/19/18, and FedEx Corp will pay its quarterly dividend of $0.65 on 1/2/19. As a percentage of DCI's recent stock price of $49.54, this dividend works out to approximately 0.38%, so look for shares of Donaldson Co. Inc. to trade 0.38% lower - all else being equal - when DCI shares open for trading on 12/10/18. Similarly, investors should look for G to open 0.26% lower in price and for FDX to open 0.31% lower, all else being equal.
When an S&P 1500 component reaches 20 years of dividend increases, it becomes a contender to join the elite "Dividend Aristocrats" index. FedEx Corp (Symbol: FDX) is a " future dividend aristocrats contender ," with 16+ years of increases.
Below are dividend history charts for DCI, G, and FDX, showing historical dividends prior to the most recent ones declared.
Donaldson Co. Inc. (Symbol: DCI) :
Genpact Ltd (Symbol: G) :
FedEx Corp (Symbol: FDX) :
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 1.53% for Donaldson Co. Inc., 1.05% for Genpact Ltd, and 1.23% for FedEx Corp.
In Thursday trading, Donaldson Co. Inc. shares are currently off about 3.4%, Genpact Ltd shares are down about 1.6%, and FedEx Corp shares are down about 1.8% 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.
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 12/10/18, Donaldson Co. Inc. (Symbol: DCI), Genpact Ltd (Symbol: G), and FedEx Corp (Symbol: FDX) will all trade ex-dividend for their respective upcoming dividends. As a percentage of DCI's recent stock price of $49.54, this dividend works out to approximately 0.38%, so look for shares of Donaldson Co. Inc. to trade 0.38% lower - all else being equal - when DCI shares open for trading on 12/10/18. Below are dividend history charts for DCI, G, and FDX, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel , on 12/10/18, Donaldson Co. Inc. (Symbol: DCI), Genpact Ltd (Symbol: G), and FedEx Corp (Symbol: FDX) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. (Symbol: DCI) : Genpact Ltd (Symbol: G) : FedEx Corp (Symbol: FDX) : 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 $49.54, this dividend works out to approximately 0.38%, so look for shares of Donaldson Co. Inc. to trade 0.38% lower - all else being equal - when DCI shares open for trading on 12/10/18. | Looking at the universe of stocks we cover at Dividend Channel , on 12/10/18, Donaldson Co. Inc. (Symbol: DCI), Genpact Ltd (Symbol: G), and FedEx Corp (Symbol: FDX) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. (Symbol: DCI) : Genpact Ltd (Symbol: G) : FedEx Corp (Symbol: FDX) : 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 $49.54, this dividend works out to approximately 0.38%, so look for shares of Donaldson Co. Inc. to trade 0.38% lower - all else being equal - when DCI shares open for trading on 12/10/18. | Looking at the universe of stocks we cover at Dividend Channel , on 12/10/18, Donaldson Co. Inc. (Symbol: DCI), Genpact Ltd (Symbol: G), and FedEx Corp (Symbol: FDX) will all trade ex-dividend for their respective upcoming dividends. As a percentage of DCI's recent stock price of $49.54, this dividend works out to approximately 0.38%, so look for shares of Donaldson Co. Inc. to trade 0.38% lower - all else being equal - when DCI shares open for trading on 12/10/18. Below are dividend history charts for DCI, G, and FDX, showing historical dividends prior to the most recent ones declared. | d3075b26-5ec5-4507-92fe-02c8094ef05e |
709834.0 | 2018-12-06 00:00:00 UTC | Can Donaldson (DCI) Maintain Momentum Despite Headwinds? | DCI | https://www.nasdaq.com/articles/can-donaldson-dci-maintain-momentum-despite-headwinds-2018-12-06 | nan | nan | Investors have been encouraged by Donaldson Company, Inc. 's DCI striking performance of late, and consequently, its shares have appreciated 7.6% in the past six months, outperforming the industry 's average rise of 5.2%.
We believe that the company has several growth drivers in place and enjoys a robust foothold in its served markets, which should help it maintain growth momentum in the quarters ahead.
Factors to Consider
Donaldson perceives that strength in Off-Road, On-Road and Aftermarket business will drive revenues of its Engine Products segment, going forward. Also, the acquisition of BOFA International Ltd (BOFA) (closed on Oct 22, 2018) is expected strengthen the company's Industrial Products segment. Donaldson expects its year-over-year sales growth to lie between 6% and 10% in fiscal 2019.
Donaldson is poised to boost its competency on the back of its ongoing capital expenditure and innovation investments. The company's capital expenditure totaled $28.2 million in the fiscal first quarter, up 41.7% year over year. These investments were made to increase the company's existing production capacity, support future demand of its fast-growing products and enhance its ecommerce business setup.
Successful product launches like LifeTec filters and new program wins, particularly in China, are likely to drive the company's revenues growth in the quarters ahead.
However, weakening Gas Turbine Systems (GTS) business remains a major cause of concern for Donaldson. Revenues of the company's GTS business declined 3.1% year over year in the first-quarter fiscal 2019, primarily on account of decline in large turbine projects. Donaldson expects that the issue will continue to weigh on the top-line performance of its Industrial Products segment in fiscal 2019. Notably GTS sales are predicted to dip in high single-digit in fiscal 2019.
Zacks Rank & Stocks to Consider
The stock currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Arista Networks, Inc. ANET , Amphenol Corp. APH and Apptio Inc. APTI . While Arista Networks sports a Zacks Rank #1 (Strong Buy), Amphenol and Apptio carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Arista Networks surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 13.35%.
Amphenol surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 5.28%.
Apptio outpaced estimates in each of the preceding four quarters, the average earnings surprise being 100.00%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors have been encouraged by Donaldson Company, Inc. 's DCI striking performance of late, and consequently, its shares have appreciated 7.6% in the past six months, outperforming the industry 's average rise of 5.2%. Click to get this free report Apptio Inc. (APTI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Consider Donaldson perceives that strength in Off-Road, On-Road and Aftermarket business will drive revenues of its Engine Products segment, going forward. | Click to get this free report Apptio Inc. (APTI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors have been encouraged by Donaldson Company, Inc. 's DCI striking performance of late, and consequently, its shares have appreciated 7.6% in the past six months, outperforming the industry 's average rise of 5.2%. Some better-ranked stocks from the same space are Arista Networks, Inc. ANET , Amphenol Corp. APH and Apptio Inc. APTI . | Click to get this free report Apptio Inc. (APTI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors have been encouraged by Donaldson Company, Inc. 's DCI striking performance of late, and consequently, its shares have appreciated 7.6% in the past six months, outperforming the industry 's average rise of 5.2%. Zacks Rank & Stocks to Consider The stock currently carries a Zacks Rank #3 (Hold). | Investors have been encouraged by Donaldson Company, Inc. 's DCI striking performance of late, and consequently, its shares have appreciated 7.6% in the past six months, outperforming the industry 's average rise of 5.2%. Click to get this free report Apptio Inc. (APTI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson expects that the issue will continue to weigh on the top-line performance of its Industrial Products segment in fiscal 2019. | 91f7063d-cb03-4aef-9f74-cf040064b827 |
709835.0 | 2018-12-05 00:00:00 UTC | Donaldson (DCI) Misses on Q1 Earnings, Tweaks EPS View | DCI | https://www.nasdaq.com/articles/donaldson-dci-misses-on-q1-earnings-tweaks-eps-view-2018-12-05 | nan | nan | Donaldson Company, Inc.DCI reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same.
Earnings & Revenues
Quarterly adjusted earnings came in at 56 cents per share, up 21.7% year over year. However, the bottom line missed the Zacks Consensus Estimate by a penny.
The company generated revenues of $701.4 million in the reported quarter, up 8.8% from the year-ago level. However, the top line marginally surpassed the Zacks Consensus Estimate of 700 million.
Segmental Break-Up
Quarterly revenues from the Engine Products segment came in at $480.9 million, up 8.8% year over year. Industrial Products segment's revenues also improved 8.8% year over year to $220.5 million.
Donaldson Company, Inc. Price, Consensus and EPS Surprise
Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote
Costs & Margins
Cost of sales in the reported quarter was $463 million, up 10.1% from the year-ago quarter. Adjusted gross margin came in at 34%, down 80 basis points (bps) year over year.
Aggregate operating expenses in the fiscal first quarter were $139.7 million, up 3.4% year over year. Adjusted operating margin improved 30 bps year over year to 14.1% in the reported quarter.
Balance Sheet & Cash Flow
Exiting fiscal first quarter, Donaldson had cash and cash equivalents worth $199.9 million, down from $204.7 million recorded as of Jul 31, 2018. Long-term debt came in at $630.6 million, up from $499.6 million recorded at fiscal 2018-end.
In first-quarter fiscal 2019, the company generated $63.3 million cash from operating activities, down roughly 1% from the year-ago period. Capital expenditure in the reported quarter came in at $28.2 million, up 41.7% year over year.
Outlook
Donaldson perceives that ongoing contract wins, market share gains and favourable end-market conditions will aid it in boosting revenues and profitability in the quarters ahead. Moreover, the acquisition of BOFA International LTD (BOFA) (closed in Oct 22, 2018) is expected strengthen the Industrial business of this Zacks Rank #2 (Buy) stock. The company plans to offset the impact of material price inflation with its ongoing pricing actions.
Based on the existing market conditions, Donaldson now anticipates earnings in the range of $2.31-$2.45 per share for fiscal 2019 (ending July 2019), reflecting an increment of 2 cents from the prior view. The BOFA buyout is expected to boost the company's sales by nearly 1% year over year in fiscal 2019. However, eliminating this impact, its revenue view is consistent with the prior guidance of 6-10%.
Other Stocks to Consider
Other top-ranked stocks within the Zacks Industrial Products sector are listed below:
ARC Document Solutions, Inc. ARC sports a Zacks Rank #1 (Strong Buy). The company pulled off average positive earnings surprise of 133.33% in the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Energy Recovery, Inc. ERII carries a Zacks Rank #2. The company delivered average positive earnings surprise of 204.17% in the past four quarters.
Applied Industrial Technologies, Inc. AIT also carries a Zacks Rank of 2. The company recorded average positive earnings surprise of 11.67% in the past four quarters.
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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 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 mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Outlook Donaldson perceives that ongoing contract wins, market share gains and favourable end-market conditions will aid it in boosting revenues and profitability in the quarters ahead. | Donaldson Company, Inc.DCI reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Costs & Margins Cost of sales in the reported quarter was $463 million, up 10.1% from the year-ago quarter. | Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Costs & Margins Cost of sales in the reported quarter was $463 million, up 10.1% from the year-ago quarter. | Donaldson Company, Inc.DCI reported mixed first-quarter fiscal 2019 (ended Oct 31, 2018) results, with earnings lagging the Zacks Consensus Estimate but revenues beating the same. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings & Revenues Quarterly adjusted earnings came in at 56 cents per share, up 21.7% year over year. | 526b545e-7bc3-47c6-99b3-96ae97fd9bd8 |
709836.0 | 2018-12-04 00:00:00 UTC | Donaldson (DCI) Q1 Earnings Miss Estimates | DCI | https://www.nasdaq.com/articles/donaldson-dci-q1-earnings-miss-estimates-2018-12-04 | nan | nan | Donaldson (DCI) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.75%. A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.58 per share when it actually produced earnings of $0.58, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $701.40 million for the quarter ended October 2018, surpassing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $644.80 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.
Donaldson shares have added about 14.5% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Donaldson?
While Donaldson 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 Donaldson was 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 $0.51 on $711.65 million in revenues for the coming quarter and $2.37 on $2.94 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 bottom 38% 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.
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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 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 $0.56 per share, missing the Zacks Consensus Estimate of $0.57 per share. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. 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. | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson (DCI) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.57 per share. Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $701.40 million for the quarter ended October 2018, surpassing the Zacks Consensus Estimate by 0.26%. | Donaldson (DCI) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.57 per share. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $701.40 million for the quarter ended October 2018, surpassing the Zacks Consensus Estimate by 0.26%. | Donaldson (DCI) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.57 per share. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | 29ef715e-8426-4b69-88a5-9fb33f7d87ac |
709837.0 | 2018-12-04 00:00:00 UTC | Donaldson Rolls Out New Rating System for Its Turbo Filters | DCI | https://www.nasdaq.com/articles/donaldson-rolls-out-new-rating-system-for-its-turbo-filters-2018-12-04 | nan | nan | Donaldson Company, Inc.DCI recently developed a more efficient and easier approach for the gas turbine system operators to select the suitable replacement air filters. Henceforth, each of the company's Turbo-Tek Cartridge Filters will be fitted with a unique rating system that will aid in the filter selection process.
Inside the Headlines
Notably, the gas turbine inlet air filter selection process is extremely confusing and complex owing to the abundance of industry ratings. However, Donaldson's newfangled rating system is likely to alleviate the issue going forward. It is an unique 0-5 point rating scale that gauges watertightness (W), efficiency (Er) and pulse recovery rate (P) for all types of its Turbo-Tek Cartridge Filters.
Er will be representing the percentage of particulates confined from incoming air. W rating will indicate the filter's water ingress resistance capacity. Meanwhile, the P rating will show how readily the peak recital returns post pulse cleaning a dust load.
The company's rating system was prepared after several laboratory tests and aids in quantifying pulse recovery rate and watertightness of the filters, in turn making selection easier for the operators. Donaldson noted that the operators will be able to power their gas turbine system's more cost effectively driven by the convenience of the filter selection process.
Our Take
Strength in major businesses (like Aerospace and Defence, Filtration Solutions and Special Applications), strategic innovation investments, ongoing pricing initiatives and diligent cost cutting moves is likely to bolster Donaldson's near-term competency. Over the past month, this Zacks Rank #3 (Hold) has rallied 5.8%, outperforming 1.4% growth recorded by the industry it belongs to.
However, material price inflation (on account of tariffs imposed over certain U.S. imports) and flaring up freight charges are both predicted to hurt the company's gross profit by nearly $30 million in fiscal 2019 (ending July 2019). Further, weakening Gas Turbine Systems business remains a major cause of concern. The aforementioned rating system introduction might give a boost to this business but scarcity of large turbine projects might continue to weigh on performance going forward.
Stocks to Consider
Some better-ranked stocks within the Zacks Industrial Products sector are listed below:
ARC Document Solutions, Inc. ARC sports a Zacks Rank #1 (Strong Buy). The company has pulled off a positive average earnings surprise of 133.33% in the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Energy Recovery, Inc. ERII carries a Zacks Rank #2 (Buy). The company has delivered a positive average earnings surprise of 204.17% in the past four quarters.
Applied Industrial Technologies, Inc. AIT also carries a Zacks Rank of 2. The company has recorded a positive average earnings surprise of 11.67% in the past four quarters.
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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 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 recently developed a more efficient and easier approach for the gas turbine system operators to select the suitable replacement air filters. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Inside the Headlines Notably, the gas turbine inlet air filter selection process is extremely confusing and complex owing to the abundance of industry ratings. | Donaldson Company, Inc.DCI recently developed a more efficient and easier approach for the gas turbine system operators to select the suitable replacement air filters. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Energy Recovery, Inc. ERII carries a Zacks Rank #2 (Buy). | Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI recently developed a more efficient and easier approach for the gas turbine system operators to select the suitable replacement air filters. The company's rating system was prepared after several laboratory tests and aids in quantifying pulse recovery rate and watertightness of the filters, in turn making selection easier for the operators. | Donaldson Company, Inc.DCI recently developed a more efficient and easier approach for the gas turbine system operators to select the suitable replacement air filters. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report ARC Document Solutions, Inc. (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Henceforth, each of the company's Turbo-Tek Cartridge Filters will be fitted with a unique rating system that will aid in the filter selection process. | d6bc3584-c395-45db-b51c-38ce2b55aa00 |
709838.0 | 2018-12-03 00:00:00 UTC | Pre-Market Earnings Report for December 4, 2018 : BMO, DG, AZO, HDS, DCI, CONN, GMS, MOV, SECO, EMKR | DCI | https://www.nasdaq.com/articles/pre-market-earnings-report-december-4-2018-bmo-dg-azo-hds-dci-conn-gms-mov-seco-emkr-2018 | nan | nan | The following companies are expected to report earnings prior to market open on 12/04/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Bank Of Montreal ( BMO ) is reporting for the quarter ending October 31, 2018. The bank (foreign) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.75. This value represents a 12.90% increase compared to the same quarter last year. BMO missed the consensus earnings per share in the 4th calendar quarter of 2017 by -1.9%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for BMO is 10.94 vs. an industry ratio of 12.70.
Dollar General Corporation ( DG ) is reporting for the quarter ending October 31, 2018. The discount retail company's consensus earnings per share forecast from the 23 analysts that follow the stock is $1.26. This value represents a 28.57% increase compared to the same quarter last year. DG missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -2.86%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DG is 18.17 vs. an industry ratio of 17.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AutoZone, Inc. ( AZO ) is reporting for the quarter ending November 30, 2018. The wholesale retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $12.21. This value represents a 22.59% increase compared to the same quarter last year. In the past year AZO has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 3.69%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for AZO is 13.96 vs. an industry ratio of 17.60.
HD Supply Holdings, Inc. ( HDS ) is reporting for the quarter ending October 31, 2018. The industrial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.96. This value represents a 20.00% increase compared to the same quarter last year. In the past year HDS has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 3.13%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for HDS is 12.05 vs. an industry ratio of 10.90, 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 October 31, 2018. The pollution control company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.57. This value represents a 23.91% increase compared to the same quarter last year. DCI missed the consensus earnings per share in the 1st calendar quarter of 2018 by -2.27%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 23.65 vs. an industry ratio of 24.90.
Conn's, Inc. ( CONN ) is reporting for the quarter ending October 31, 2018. The retail company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.58. This value represents a 222.22% increase compared to the same quarter last year. In the past year CONN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 39.02%. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2019 Price to Earnings ratio for CONN is 11.39 vs. an industry ratio of 13.10.
GMS Inc. ( GMS ) is reporting for the quarter ending October 31, 2018. The building company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.96. This value represents a 88.24% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for GMS is 5.69 vs. an industry ratio of 15.70.
Movado Group Inc. ( MOV ) is reporting for the quarter ending October 31, 2018. The jewelry retail company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.13. This value represents a 8.65% increase compared to the same quarter last year. In the past year MOV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2019 Price to Earnings ratio for MOV is 14.82 vs. an industry ratio of 13.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Secoo Holding Limited ( SECO ) is reporting for the quarter ending September 30, 2018. The internet company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.14. This value represents a 53.33% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for SECO is 14.93 vs. an industry ratio of 52.20.
EMCORE Corporation ( EMKR ) is reporting for the quarter ending September 30, 2018. The electrical manufacturing company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.07. This value represents a 177.78% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for EMKR is -9.68 vs. an industry ratio of -40.60, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Company, Inc. ( DCI ) is reporting for the quarter ending October 31, 2018. DCI missed the consensus earnings per share in the 1st calendar quarter of 2018 by -2.27%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 23.65 vs. an industry ratio of 24.90. | Donaldson Company, Inc. ( DCI ) is reporting for the quarter ending October 31, 2018. DCI missed the consensus earnings per share in the 1st calendar quarter of 2018 by -2.27%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 23.65 vs. an industry ratio of 24.90. | Donaldson Company, Inc. ( DCI ) is reporting for the quarter ending October 31, 2018. DCI missed the consensus earnings per share in the 1st calendar quarter of 2018 by -2.27%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 23.65 vs. an industry ratio of 24.90. | Donaldson Company, Inc. ( DCI ) is reporting for the quarter ending October 31, 2018. DCI missed the consensus earnings per share in the 1st calendar quarter of 2018 by -2.27%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DCI is 23.65 vs. an industry ratio of 24.90. | 82a969c4-274e-48c5-abe9-0b4eb4c525b7 |
709839.0 | 2018-11-30 00:00:00 UTC | Daily Dividend Report: NUE, DCI, LYB, NSP, GNTX | DCI | https://www.nasdaq.com/articles/daily-dividend-report-nue-dci-lyb-nsp-gntx-2018-11-30 | nan | nan | The board of directors of Nucor increased the regular quarterly cash dividend on Nucor's common stock by 5.3% to $0.40 per share from $0.38 per share. This cash dividend is payable on February 11, 2019 to stockholders of record on December 31, 2018 and is Nucor's 183rd consecutive quarterly cash dividend. Nucor has increased its regular, or base, dividend for 46 consecutive years - every year since it first began paying dividends in 1973. Over the past ten years, Nucor has returned more than $5 billion in capital to its stockholders in the form of base dividends, supplemental dividends and share repurchases.
Donaldson today announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable December 21, 2018, to shareholders of record on December 11, 2018. The Company has paid a cash dividend every quarter for 63 years and increased the dividend annually for more than 20 years.
LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.00 per share, to be paid December 17, 2018 to shareholders of record December 10, 2018, with an ex-dividend date of December 7, 2018.
Insperity, a leading provider of human resources and business performance solutions for America's best businesses, today announced that its board of directors declared a quarterly cash dividend of $0.20 per share. The cash dividend will be paid on December 28, 2018 to all stockholders of record as of December 13, 2018.
Gentex, the Zeeland, Michigan-based supplier of digital vision, connected car, dimmable glass, and fire protection technologies, today announced that its Board of Directors recently declared a quarterly cash dividend of $0.11 per share that will be payable January 23, 2019, to shareholders of record of the common stock at the close of business on January 9, 2019.
VIDEO: Daily Dividend Report: NUE, DCI, LYB, NSP, GNTX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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: NUE, DCI, LYB, NSP, GNTX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Insperity, a leading provider of human resources and business performance solutions for America's best businesses, today announced that its board of directors declared a quarterly cash dividend of $0.20 per share. Gentex, the Zeeland, Michigan-based supplier of digital vision, connected car, dimmable glass, and fire protection technologies, today announced that its Board of Directors recently declared a quarterly cash dividend of $0.11 per share that will be payable January 23, 2019, to shareholders of record of the common stock at the close of business on January 9, 2019. | VIDEO: Daily Dividend Report: NUE, DCI, LYB, NSP, GNTX 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 Nucor increased the regular quarterly cash dividend on Nucor's common stock by 5.3% to $0.40 per share from $0.38 per share. Donaldson today announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable December 21, 2018, to shareholders of record on December 11, 2018. | VIDEO: Daily Dividend Report: NUE, DCI, LYB, NSP, GNTX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This cash dividend is payable on February 11, 2019 to stockholders of record on December 31, 2018 and is Nucor's 183rd consecutive quarterly cash dividend. Donaldson today announced that its Board of Directors declared a regular cash dividend of 19.0 cents per share, payable December 21, 2018, to shareholders of record on December 11, 2018. | VIDEO: Daily Dividend Report: NUE, DCI, LYB, NSP, GNTX 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 Nucor increased the regular quarterly cash dividend on Nucor's common stock by 5.3% to $0.40 per share from $0.38 per share. This cash dividend is payable on February 11, 2019 to stockholders of record on December 31, 2018 and is Nucor's 183rd consecutive quarterly cash dividend. | 2f59998e-7be8-4022-b35d-302a64387c6c |
709840.0 | 2018-11-27 00:00:00 UTC | Donaldson (DCI) Earnings Expected to Grow: What to Know Ahead of Next Week's Release | DCI | https://www.nasdaq.com/articles/donaldson-dci-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release-2018-11 | nan | nan | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended October 2018. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on December 4, 2018, 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 $0.57 per share in its upcoming report, which represents a year-over-year change of +23.9%.
Revenues are expected to be $699.60 million, up 8.5% 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. 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 $0.58 per share when it actually produced earnings of $0.58, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two 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.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended October 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended October 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise 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. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended October 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise 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. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended October 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise 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. | 4b6fb8bb-2bb4-4fa2-b4a7-6bd46507408e |
709841.0 | 2018-11-25 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 11/25/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-11252018-2018-11-25 | 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.
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.
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.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
G-III APPAREL GROUP, LTD. ( GIII ) 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: G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women's suits and women's performance wear, as well as women's handbags, footwear, small leather goods, cold weather accessories and luggage. The Company's owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.
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.
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 448.82% vs. 163.15% 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.
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. 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 G-III APPAREL GROUP, LTD. ( GIII ) is a mid-cap growth stock in the Apparel/Accessories industry. | 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's segments include Engine Products, Industrial Products and Corporate. 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. The Company's segments include Engine Products, Industrial Products and Corporate. 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 448.82% vs. 163.15% for the S&P 500. | 7a28d1c0-010a-4f7e-8415-68671cb8e156 |
709842.0 | 2018-11-09 00:00:00 UTC | Middleby (MIDD) Q3 Earnings Miss Estimates, View Encouraging | DCI | https://www.nasdaq.com/articles/middleby-midd-q3-earnings-miss-estimates-view-encouraging-2018-11-09 | nan | nan | Machinery behemoth The Middleby CorporationMIDD reported weaker-than-expected results for third-quarter 2018. However, the quarterly results of the company improved on a year-over-year basis. This Zacks Rank #2 (Buy) stock valued $116.53 per share as of Nov 8, nearly flat since the after-market release of its third-quarter earnings on Nov 7.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.56 per share, up 14.7% year over year. However, the bottom-line figure missed the Zacks Consensus Estimate by a penny. The company noted that restructuring expenses and higher interest costs weighed over quarterly earnings. Notably, including the impact of these expenses, Middleby's adjusted earnings remained flat year over year at $1.31 per share in the third quarter.
Net sales in the reported quarter came in at $$713.3 million, up 20.3% year over year. The upswing was driven by the benefits secured from newly-made acquisitions and the Accounting Standards Codification 606 adoption. However, we notice that unfavorable foreign currency-translation impact hurt the company's revenues in the reported quarter.
Middleby's third-quarter revenues missed the Zacks Consensus Estimate of $727 million.
Segmental Break-Up
Net sales of the Commercial Foodservice Equipment Group surged 32.9% year over year to $471.6 million in the quarter under review. The Residential Kitchen Equipment Group's revenues inched up 1.4% year over year to $153.5 million. The Food Processing Equipment Group's revenues improved 1.6% year over year to $88.2 million.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation Price, Consensus and EPS Surprise | The Middleby Corporation Quote
Costs/Margins
Cost of sales in the third quarter was $452.2 million compared to $364.5 million recorded in the year-ago quarter. Gross profit margin in the quarter came in at 36.6%, shrinking 190 basis points (bps) year over year. Gross margin in the Sep-end quarter dipped primarily due to reduced margins secured from the acquired businesses.
Selling, general and administrative expenses totaled $141.4 million, higher than $114.9 million recorded in the year-ago period. Operating margin came in at 15.1%, contracting 340 bps, year over year.
Balance Sheet/Cash Flow
Middleby exited the third quarter with cash and cash equivalents of $76.6 million, as against $89.7 million recorded at the end of 2017. Long-term debt was $1,955.2 million compared with $1,023.7 million recorded as of Dec 30, 2017.
In the first nine months of 2018, the company's operating cash flow stood at $252 million, up from $204.9 million recorded in the year-ago period. Capital expenditure was $32.6 million, down 23.3% year over year.
Outlook
Middleby believes the recently-made acquisitions will bolster its revenues and profitability in the upcoming quarters. The company also anticipates that the ongoing restructuring moves and product launches will aid in boosting its competency, going forward.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Industrial Products sector are listed below:
Atkore International Group Inc. ATKR sports a Zacks Rank #1 (Strong Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
Currently, Rockwell Automation, Inc. ROK also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 7.00% during the same time frame.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
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The Middleby Corporation (MIDD): Free Stock Analysis Report
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 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 carries a Zacks Rank #2 (Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The upswing was driven by the benefits secured from newly-made acquisitions and the Accounting Standards Codification 606 adoption. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. Middleby's third-quarter revenues missed the Zacks Consensus Estimate of $727 million. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. Net sales in the reported quarter came in at $$713.3 million, up 20.3% year over year. | Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Net sales in the reported quarter came in at $$713.3 million, up 20.3% year over year. | a952bf30-ec71-4a87-8ac9-215a4ef46aa7 |
709843.0 | 2018-11-09 00:00:00 UTC | Manitowoc's (MTW) Q3 Earnings Top, Revenues Meet Estimates | DCI | https://www.nasdaq.com/articles/manitowocs-mtw-q3-earnings-top-revenues-meet-estimates-2018-11-09 | nan | nan | The Manitowoc Company, Inc.MTW posted third-quarter 2018 adjusted earnings per share of 20 cents, which slumped 45% year over year. However, the bottom-line figure comfortably beat the Zacks Consensus Estimate of 8 cents.
Including special items, the company posted earnings of 32 cents per share compared to 27 cents per share recorded in the prior-year quarter.
Manitowoc's revenues increased 13%, year over year, to $450 million in the third quarter, driven by improved crane shipments across all regions. The top-line figure came in line with the Zacks Consensus Estimate.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise | The Manitowoc Company, Inc. Quote
Operational Update
Cost of sales jumped 13% to $370 million in the reported quarter from $327 million in the prior-year quarter. Gross profit climbed 10% year over year to $80 million. Gross margin shrunk 40 basis points to 17.8%.
Engineering, selling and administrative expenses flared up 5% year over year to $62 million. Adjusted EBITDA was $31 million in the quarter under review compared to $23 million witnessed in the year-earlier quarter. Adjusted operating income was $17 million in the quarter, which increased from $10 million reported in the year-ago period.
Backlog
Backlog in the Sep-end quarter came in at $700 million, up 50% from third-quarter 2017. Third-quarter 2018 orders came in at $458 million, marking a 22% jump from the year-ago quarter.
Financial Updates
Manitowoc reported cash and cash equivalents of $91 million at the end of the quarter under review, down from $123 million recorded at the end of 2017. Long-term debt was $265 million as of Sep 30, 2018, compared with $267 million as of Dec 31, 2017.
The company used $441 million of cash in operating activities during the nine-month period ended Sep 30, 2018, compared with cash usage of $294 million reported in the comparable period last year.
Guidance
Manitowoc raised its full-year 2018 revenue guidance to $1.80-$1.83 billion from $1.78-$1.85 billion. The company affirmed its 2018 adjusted EBITDA guidance of $105-$115 million. Manitowoc also revised its outlook for capital expenditures to roughly $30 million for the current year.
Manitowoc is poised to gain from focus on operational progress using the principles of The Manitowoc Way. Nonetheless, material inflation, tariffs and supply-chain challenges remain concerns. Also, foreign currency exchange rates are straining its margins.
Share Price Performance
Over the past year, Manitowoc has underperformed the industry with respect to price performance. The stock has lost around 50%, while the industry recorded loss of around 2%.
Zacks Rank & Key Picks
Manitowoc currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Enersys ENS , Donaldson Company, Inc. DCI and Encore Wire Corporation WIRE . While Enersys sports a Zacks Rank #1 (Strong Buy), Donaldson and Encore Wire carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Enersys has a long-term earnings growth rate of 10%. Shares of the company have appreciated 28% over the past year.
Donaldson has a long-term earnings growth rate of 11.5%. Its shares have rallied around 19% in the past year.
Encore Wire has a long-term earnings growth rate of 10%. Shares of the company have gained 13% in a year's time.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same sector include Enersys ENS , Donaldson Company, Inc. DCI and Encore Wire Corporation WIRE . Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Manitowoc also revised its outlook for capital expenditures to roughly $30 million for the current year. | Better-ranked stocks in the same sector include Enersys ENS , Donaldson Company, Inc. DCI and Encore Wire Corporation WIRE . Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. The Manitowoc Company, Inc. Price, Consensus and EPS Surprise The Manitowoc Company, Inc. Price, Consensus and EPS Surprise | The Manitowoc Company, Inc. Quote Operational Update Cost of sales jumped 13% to $370 million in the reported quarter from $327 million in the prior-year quarter. | Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same sector include Enersys ENS , Donaldson Company, Inc. DCI and Encore Wire Corporation WIRE . The Manitowoc Company, Inc. Price, Consensus and EPS Surprise The Manitowoc Company, Inc. Price, Consensus and EPS Surprise | The Manitowoc Company, Inc. Quote Operational Update Cost of sales jumped 13% to $370 million in the reported quarter from $327 million in the prior-year quarter. | Better-ranked stocks in the same sector include Enersys ENS , Donaldson Company, Inc. DCI and Encore Wire Corporation WIRE . Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. The Manitowoc Company, Inc.MTW posted third-quarter 2018 adjusted earnings per share of 20 cents, which slumped 45% year over year. | d5e6f121-d1f0-463c-8bac-ff626674cb09 |
709844.0 | 2018-11-08 00:00:00 UTC | Flowserve (FLS) Q3 Earnings & Revenues Surpass Estimates | DCI | https://www.nasdaq.com/articles/flowserve-fls-q3-earnings-revenues-surpass-estimates-2018-11-08 | nan | nan | Flowserve CorporationFLS reported better-than-expected bottom-line results for the third quarter of 2018, delivering a positive earnings surprise of 16.7%.
This machinery company's adjusted earnings were 49 cents per share, surpassing the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line increased 32.4% from the year-ago figure of 37 cents, primarily on the back of sales growth.
Segmental Performance Drives Revenues
In the quarter under review, Flowserve's sales were $952.7 million, reflecting growth of 7.8% from the year-ago quarter. Notably, the sales growth was partially offset by 1% negative impact from divested businesses.
Moreover, the top line surpassed the Zacks Consensus Estimate of $921 million by 3.4%.
Flowserve Corporation Price, Consensus and EPS Surprise
Flowserve Corporation Price, Consensus and EPS Surprise | Flowserve Corporation Quote
Aftermarket sales in the reported quarter grew 3.9% year over year (or 5% on a constant-currency basis) to $457 million. Furthermore, original equipment sales totaled $496 million, reflecting growth of 11.8% (or 12.5% on a constant-currency basis).
Bookings totaled more than $1 billion, reflecting growth of 13.2% from the year-ago quarter. Backlog at the end of the reported quarter was $1.9 billion, reflecting an increase of 1.4% sequentially.
The company reports its net sales in three segments, a brief discussion of those are provided below:
Revenues from the Engineered Product Division were $466.2 million, increasing 9.9% year over year or 10.3% on a constant-currency basis. Bookings increased 20.2% to $519.8 million.
Revenues from the Industrial Product Division totaled $199.1 million, increasing 5% year over year or 6.1% on a constant-currency basis. Bookings were solid in the quarter under review, increasing 1.5% to $199.8 million.
Revenues from the Flow Control Division were $306.2 million, increasing 6.4% year over year or 7.9% on a constant-currency basis. Bookings of $314.2 million jumped 9.9%.
Margin Profile
In the quarter under review, Flowserve's adjusted cost of sales increased 4.7% year over year to $644.2 million. It represented 67.6% of sales compared with 69.7% in the year-ago quarter. Adjusted gross margin increased 130 basis points (bps) to 33.2%. Selling, general and administrative expenses increased 17.4% to $241.9 million. It represented 25.4% of sales.
Adjusted operating income in the quarter under review increased 26.5% year over year to $105 million. Moreover, adjusted operating margin grew 160 bps to 11%. Effective tax rate was 28.8% compared with 27% in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the third quarter, Flowserve had cash and cash equivalents of $529.9 million, up 2.4% from $517.4 million at the end of the last-reported quarter. Long-term debt balance decreased 1.3% sequentially to $1,436.7 million.
In the first nine months of 2018, the company generated net cash of $26.3 million its from operating activities compared with $72.4 million in the year-ago period. Capital expenditure amounted to almost $50 million compared with $40.6 million in the first nine months of 2017.
During the first three quarters of 2018, the company used $74.5 million for distributing dividends.
Outlook
Flowserve is progressing well with its transformation initiatives. The multi-year Flowserve 2.0 strategy will help in simplifying the operating model and spur growth.
The company currently expects adjusted earnings per share in the range of $1.65-$1.75 compared with the earlier guided range of $1.50-$1.70. Revenues are currently projected to increase 5-7% compared with previous forecast of 3-6% growth. Adjusted tax rate for the year is predicted to be 27-28%.
Zacks Rank & Other Key Picks
Flowserve currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the same space are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Cintas Corporation CTAS . While Atkore International Group sports a Zacks Rank #1 (Strong Buy), Donaldson and Cintas carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International Group surpassed estimates thrice in the trailing four quarters, the average beat being 24.46%.
Donaldson exceeded estimates twice in the trailing four quarters, the average beat being 2.29%.
Cintas surpassed estimates in each of the trailing four quarters, the average beat being 7.22%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the same space are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Cintas Corporation CTAS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Flowserve CorporationFLS reported better-than-expected bottom-line results for the third quarter of 2018, delivering a positive earnings surprise of 16.7%. | Some other top-ranked stocks in the same space are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Cintas Corporation CTAS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Flowserve Corporation Price, Consensus and EPS Surprise Flowserve Corporation Price, Consensus and EPS Surprise | Flowserve Corporation Quote Aftermarket sales in the reported quarter grew 3.9% year over year (or 5% on a constant-currency basis) to $457 million. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the same space are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Cintas Corporation CTAS . Flowserve Corporation Price, Consensus and EPS Surprise Flowserve Corporation Price, Consensus and EPS Surprise | Flowserve Corporation Quote Aftermarket sales in the reported quarter grew 3.9% year over year (or 5% on a constant-currency basis) to $457 million. | Some other top-ranked stocks in the same space are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Cintas Corporation CTAS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Segmental Performance Drives Revenues In the quarter under review, Flowserve's sales were $952.7 million, reflecting growth of 7.8% from the year-ago quarter. | 307fb445-8648-4504-85cf-8218f317778c |
709845.0 | 2018-11-06 00:00:00 UTC | Regal Beloit (RBC) Beats on Q3 Earnings, Narrows '18 EPS View | DCI | https://www.nasdaq.com/articles/regal-beloit-rbc-beats-on-q3-earnings-narrows-18-eps-view-2018-11-06 | nan | nan | Regal Beloit CorporationRBC reported mixed results for third-quarter 2018.
Earnings/Revenues
Adjusted earnings in the reported quarter came in at $1.67 per share, up 22.8% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $1.61.
Net sales in the quarter improved 8% year over year to $925.4 million. Notably, the top-line figure improved 5.2% year over year, organically. The company stated that acquisitions, net of divestitures boosted quarterly revenues by 4.1%. However, negative foreign-exchange and the residential hermetic motor-components business divestiture impact depressed the same by 0.9% and 0.4%, respectively.
We notice that Regal Beloit's third quarter revenues missed the Zacks Consensus Estimate of $930 million.
Segmental Break-Up
The Commercial & Industrial System revenues improved 13.3% year over year to $462.3 million. The Climate Solutions segment generated $255.4 million sales in the third quarter, down marginally 0.2% from the year-ago tally. The top-line results of Power Transmission Solutions improved 7.7% year over year to $207.7 million.
Regal Beloit Corporation Price, Consensus and EPS Surprise
Regal Beloit Corporation Price, Consensus and EPS Surprise | Regal Beloit Corporation Quote
Costs/Margins
Cost of sales in the reported quarter was up 8.4% year over year to $682.8 million. Gross profit margin in the third quarter was 26.2%, down 30 basis points (bps) year over year.
Aggregate operating expenses flared up 30.6% year over year to $173.2 million. Adjusted operating margin in the quarter expanded 60 bps year over year to 11.6%.
Balance Sheet/Cash Flow
Exiting the Sep-end quarter, Regal Beloit had cash and cash equivalents of $184.4 million, up from $139.6 million recorded as of Dec 30, 2017. Long-term debt stood at $1,278.3 million, up from $1,039.9 million recorded at the end of 2017.
In the reported quarter, the company generated $106 million cash from operating activities, up 23.1% year over year. Capital expenditure was up 22.2% to $18.7 million.
Outlook
Regal Beloit anticipates to secure higher orders from all end-markets in the near future. The company intends to battle the adverse impacts of inflation and tariff backed by its pricing actions. Based on the existing market conditions, this Zacks Rank #3 (Hold) company has narrowed its earnings view for 2018 from $5.70-$6.00 per share to the $5.85-$5.95 per share range.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Atkore International Group Inc. ATKR sports a Zacks Rank #1 (Strong Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here.
Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
Currently, Rockwell Automation, Inc. ROK also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 5.58% during the same time frame.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
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Regal Beloit Corporation (RBC): 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.
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 carries a Zacks Rank #2 (Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. We notice that Regal Beloit's third quarter revenues missed the Zacks Consensus Estimate of $930 million. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. Regal Beloit Corporation Price, Consensus and EPS Surprise Regal Beloit Corporation Price, Consensus and EPS Surprise | Regal Beloit Corporation Quote Costs/Margins Cost of sales in the reported quarter was up 8.4% year over year to $682.8 million. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. Regal Beloit Corporation Price, Consensus and EPS Surprise Regal Beloit Corporation Price, Consensus and EPS Surprise | Regal Beloit Corporation Quote Costs/Margins Cost of sales in the reported quarter was up 8.4% year over year to $682.8 million. | Donaldson Company, Inc. DCI carries a Zacks Rank #2 (Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings/Revenues Adjusted earnings in the reported quarter came in at $1.67 per share, up 22.8% year over year. | 615e2a36-610c-4bef-9882-26844a1f26b9 |
709846.0 | 2018-11-06 00:00:00 UTC | AptarGroup (ATR) Beats on Q3 Earnings & Revenues, Issues View | DCI | https://www.nasdaq.com/articles/aptargroup-atr-beats-on-q3-earnings-revenues-issues-view-2018-11-06 | nan | nan | AptarGroup, Inc.ATR delivered third-quarter 2018 earnings per share of 99 cents, beating the Zacks Consensus Estimate of 93 cents. Also, earnings grew 21% year over year and came in above management's guided range of 90-95 cents per share.
On a reported basis, the company recorded earnings of 60 cents per share compared to 83 cents witnessed in the year-ago quarter.
Operational Update
Total revenues improved 7% year over year to $666 million in the reported quarter, driven by 7% core sales growth and a 3% favorable impact from exchange rates. Core sales grew across each business segment, and in each end market and geographic region. Revenues also beat the Zacks Consensus Estimate of $664 million.
AptarGroup, Inc. Price, Consensus and EPS Surprise
AptarGroup, Inc. Price, Consensus and EPS Surprise | AptarGroup, Inc. Quote
Adjusted cost of sales rose 6.8% to $435 million from $408 million recorded in the year-ago quarter. Gross profit increased 6% year over year to $230 million, while gross margin contracted 10 basis points (bps) to 34.6%. Adjusted selling, research, development and administrative expenses flared up 8% year over year to $103.6 million. Adjusted operating income went up 5% year over year to $127 million. AptarGroup's operating margin shrunk 40 bps year over year to 19%.
Segmental Performance
Total revenues in the Beauty + Homes segment were up 2% year over year to $342 million. Operating income in the reported quarter remained flat year over year at $22 million.
Total revenues in the Pharma segment were up 14% year over year to $228 million. Operating income climbed 30% year over year to $71.8 million in the third quarter.
Total revenues in the Food + Beverage segment rose 6% year over year to $96.5 million. Operating income declined 26% year over year to $8.6 million.
Financial Performance
AptarGroup reported cash and cash equivalents of $291 million as of Sep 30, 2018, down from $712 million as of Dec 31, 2017. At the quarter end, long-term debt was approximately $1,132 million, down from $1,191 million as of Dec 31, 2017.
Acquisition of CSP Technologies
AptarGroup has made a binding offer to acquire CSP Technologies, a leader in active packaging technology based on proprietary material science expertise, for an enterprise value of $555 million. The buyout will help AptarGroup boost its existing business in the Pharma and Food Safety markets.
The integration is underway and proceeding well. The proposed transaction is subject to customary closing conditions and expected to close in fourth-quarter 2018.
Outlook
AptarGroup projects earnings per share for fourth-quarter 2018 will be 81-86 cents, excluding any restructuring expenses and effects associated with the CSP Technologies acquisition. The guidance reflects 18% year-over-year growth at the mid-point.
AptarGroup expects that its core sales will grow in each segment in the current quarter. The company remains committed to execute its growth strategy in order to create long-term value for all stakeholders. AptarGroup expects the inflationary environment to continue, and raw material and transportation costs to impact margins.
Share Price Performance
Shares of the company have outperformed the industry , over the past year. The stock has gained around 19%, while the industry recorded a loss of around 10% during the same time period.
Zacks Rank & Other Stocks to Consider
AptarGroup currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the same sector include Enersys ENS , Encore Wire Corporation WIRE and Donaldson Company, Inc. DCI . While Enersys and Encore Wire sport a Zacks Rank #1 (Strong Buy), Donaldson Company carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Enersys has a long-term earnings growth rate of 10%. Its shares have rallied around 21%, over the past year.
Encore Wire has a long-term earnings growth rate of 10%. The company's shares have gained around 10% in the past year.
Donaldson Company has a long-term earnings growth rate of 11.5%. The company's shares have appreciated around 12% in a year's time.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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Encore Wire Corporation (WIRE): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Enersys (ENS): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the same sector include Enersys ENS , Encore Wire Corporation WIRE and Donaldson Company, Inc. DCI . Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Outlook AptarGroup projects earnings per share for fourth-quarter 2018 will be 81-86 cents, excluding any restructuring expenses and effects associated with the CSP Technologies acquisition. | Some other top-ranked stocks in the same sector include Enersys ENS , Encore Wire Corporation WIRE and Donaldson Company, Inc. DCI . Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. AptarGroup, Inc. Price, Consensus and EPS Surprise AptarGroup, Inc. Price, Consensus and EPS Surprise | AptarGroup, Inc. Quote Adjusted cost of sales rose 6.8% to $435 million from $408 million recorded in the year-ago quarter. | Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the same sector include Enersys ENS , Encore Wire Corporation WIRE and Donaldson Company, Inc. DCI . Operational Update Total revenues improved 7% year over year to $666 million in the reported quarter, driven by 7% core sales growth and a 3% favorable impact from exchange rates. | Some other top-ranked stocks in the same sector include Enersys ENS , Encore Wire Corporation WIRE and Donaldson Company, Inc. DCI . Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Operating income in the reported quarter remained flat year over year at $22 million. | 52bcd603-b4d7-4f22-ac92-bf0720aa11db |
709847.0 | 2018-11-02 00:00:00 UTC | AGCO Corp (AGCO) Beats Earnings & Revenue Estimates in Q3 | DCI | https://www.nasdaq.com/articles/agco-corp-agco-beats-earnings-revenue-estimates-in-q3-2018-11-02 | nan | nan | AGCO CorporationAGCO reported third-quarter 2018 adjusted earnings of 91 cents, which climbed 15% year over year. The reported figure also surpassed the Zacks Consensus Estimate of 83 cents.
Including restructuring and other infrequent expenses, the company reported earnings of 89 cents per share in the quarter, which increased 17% year over year.
AGCO generated revenues of $2,215 million, up around 11.5% from $1,986 million recorded in the year-ago quarter. Additionally, the revenue figure surpassed the Zacks Consensus Estimate of $2,137 million. Excluding favorable currency-translation impact of around 6%, net sales climbed approximately 17% year over year.
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation Price, Consensus and EPS Surprise | AGCO Corporation Quote
Operational Update
Cost of sales went up 12% to $1,741 million from the year-earlier quarter. Gross profit came in at $474 million in the quarter, jumping around 11% from $429 million reported in the year-ago quarter. Gross margin contracted 20 basis points (bps) year over year to 21.4%.
Selling, general and administrative expenses flared up 12% year over year to $261 million. Adjusted income from operations increased 12.7% year over year to $113 million. Consequently, operating margin shrunk 10 bps year over year to 5.1%.
Segment Performance
Sales in the North America segment improved around 13% year over year to $546 million in the third quarter. The segment reported operating income of $33 million, which climbed around 17% year over year.
Sales in the South America segment increased around 3% year over year to $281 million. The segment reported operating income of around $13 million compared to $9 million posted in the prior-year quarter.
The EAME (Europe/ Africa/ Middle East) segment's sales came in at $1,165 million, up 14% from the year-ago quarter. EAME's operating income jumped 12% to $109 million from $97 million reported in the prior-year quarter.
Sales in the Asia/Pacific segment ascended around 6% year over year to $224 million from $212 million recorded in the comparable period last year. The segment reported income of $18 million, up from $15 million in the year-ago quarter.
Financial Update
AGCO reported cash and cash equivalents of $293 million at the end of the reported quarter, down from $368 million at the end of 2017. The company used $19 million of cash in operating activities during the nine-month period ended Sep 30, 2018, compared with cash usage of $29 million reported in the comparable period last year.
Guidance
AGCO has reaffirmed its net sales 2018 outlook of $9.3 billion, on the back of improved sales volumes, positive pricing, as well as acquisition and foreign currency-translation impact. The guidance reflects year-over-year growth of 12%. AGCO also raised its 2018 adjusted earnings per share guidance to around $3.75 from $3.70. It also anticipates gross and operating margins to improve from the 2017 levels, driven by higher net sales, as well as the benefits resulting from cost-reduction initiatives, partially offset by elevated engineering expenses and higher material costs.
AGCO projects that industry retail tractor sales will increase moderately in 2018, with improved retail sales in the row crop segment and flat retail sales of small tractors compared to last year. Furthermore, the company anticipates that industry demand in Western Europe will remain at the same level compared with 2017.
In addition, industry demand in South America will remain flat for the full year compared to 2017. Elevated retail sales in Brazil might be muted by lower sales in Argentina due to the impact of lower crop production on farm income. Moreover, AGCO remains optimistic about commodity prices, farm income, as well as growth in industry, which will drive its performance over the long term.
Share Price Performance
Over the past year, AGCO has underperformed the industry with respect to price performance. The stock has lost around 17%, while the industry recorded loss of 3% during the same time frame.
Zacks Rank & Key Picks
AGCO currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same industry include DMC Global Inc. BOOM , Enersys ENS and Donaldson Company, Inc. DCI . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
DMC Global has a long-term earnings growth rate of 20%. The stock has surged 83% in a year's time.
Enersys has a long-term earnings growth rate of 10%. The company's shares have gained 16% over the past year.
Donaldson Company has a long-term earnings growth rate of 11.5%. Its shares have rallied 11% in the past year.
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Enersys (ENS): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same industry include DMC Global Inc. BOOM , Enersys ENS and Donaldson Company, Inc. DCI . Click to get this free report AGCO Corporation (AGCO): Free Stock Analysis Report DMC Global Inc. (BOOM): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, industry demand in South America will remain flat for the full year compared to 2017. | Click to get this free report AGCO Corporation (AGCO): Free Stock Analysis Report DMC Global Inc. (BOOM): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same industry include DMC Global Inc. BOOM , Enersys ENS and Donaldson Company, Inc. DCI . AGCO Corporation Price, Consensus and EPS Surprise AGCO Corporation Price, Consensus and EPS Surprise | AGCO Corporation Quote Operational Update Cost of sales went up 12% to $1,741 million from the year-earlier quarter. | Click to get this free report AGCO Corporation (AGCO): Free Stock Analysis Report DMC Global Inc. (BOOM): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same industry include DMC Global Inc. BOOM , Enersys ENS and Donaldson Company, Inc. DCI . Segment Performance Sales in the North America segment improved around 13% year over year to $546 million in the third quarter. | Better-ranked stocks in the same industry include DMC Global Inc. BOOM , Enersys ENS and Donaldson Company, Inc. DCI . Click to get this free report AGCO Corporation (AGCO): Free Stock Analysis Report DMC Global Inc. (BOOM): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. The segment reported operating income of $33 million, which climbed around 17% year over year. | e3e719ad-7f25-4eea-9de1-569a3ca1aabf |
709848.0 | 2018-11-01 00:00:00 UTC | Parker-Hannifin (PH) Q1 Earnings Top, Revenues Miss Estimates | DCI | https://www.nasdaq.com/articles/parker-hannifin-ph-q1-earnings-top-revenues-miss-estimates-2018-11-01 | nan | nan | Parker-Hannifin Corporation PH reported mixed results for first-quarter fiscal 2019 (ended September 2018).
Earnings/ Revenues
Quarterly adjusted earnings came in at $2.84 per share, up 26.8% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $2.51.
Revenues in the fiscal first quarter were $3,479.3 million, up 3.4% year over year. The revenue figure improved 6% year over year, organically, during the quarter. However, the top line fell short of the Zacks Consensus Estimate of $3,534 million.
Segmental Break-Up
Revenues in the North American segment in the fiscal first quarter came in at $1,681 million, up 5.4% year over year.
The company's International top-line performance depreciated 0.4% to $1,233.8 million in the reported quarter.
Revenues in the Aerospace Systems segment came in at $564.5 million, up 6.3% year over year.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation Price, Consensus and EPS Surprise | Parker-Hannifin Corporation Quote
Costs/Margins
Cost of sales in the fiscal first quarter was $2,594.8 million, up 2.8% year over year. Selling, general and administrative expenses were $394.3 million, slightly down from $397 million incurred in the year-ago quarter. Adjusted operating margin in the fiscal first quarter was 17.2%, up 120 basis points (bps) year over year.
Balance Sheet/Cash Flow
Exiting the fiscal first quarter 2019, Parker-Hannifin had cash and cash equivalents of $952.1 million, up from $822.1 million recorded as of Jun 30, 2018. Long-term debt stood at $4,313.2 million, down from $4,318.6 million recorded at the end of fiscal 2018.
In the first three months of fiscal 2019, the company generated $159.4 million cash from operating activities, down from $238 million witnessed in the comparable period last year. Capital expenditures totaled $42.1 million, down 46.9% year over year.
Outlook
Parker-Hannifin intends to boost its near-term revenues and profitability on the back of the company's Win Strategy. Based on favorable market conditions, this Zacks Rank #3 (Hold) company has raised its earnings view for fiscal 2019 from $10.90-$11.50 to $11.10-$11.70 per share. Organic revenue growth is predicted to lie in the 2.5-5.3% range, higher than the prior view of 2.3-5.1%.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International Group Inc. ATKR carries a Zacks Rank #2 (Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Currently, Rockwell Automation, Inc. ROK also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 5.58% during the same time frame.
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Atkore International Group Inc. (ATKR): 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Outlook Parker-Hannifin intends to boost its near-term revenues and profitability on the back of the company's Win Strategy. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Parker-Hannifin Corporation Price, Consensus and EPS Surprise Parker-Hannifin Corporation Price, Consensus and EPS Surprise | Parker-Hannifin Corporation Quote Costs/Margins Cost of sales in the fiscal first quarter was $2,594.8 million, up 2.8% year over year. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Revenues in the fiscal first quarter were $3,479.3 million, up 3.4% year over year. | Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings/ Revenues Quarterly adjusted earnings came in at $2.84 per share, up 26.8% year over year. | 39bb2a2d-a7d9-49c9-970a-a8793bc60296 |
709849.0 | 2018-11-01 00:00:00 UTC | MRC Global (MRC) Q3 Earnings & Revenues Lag Estimates | DCI | https://www.nasdaq.com/articles/mrc-global-mrc-q3-earnings-revenues-lag-estimates-2018-11-01 | nan | nan | MRC Global Inc. MRC reported weaker-than-expected results for third-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at 20 cents per share, missing the Zacks Consensus Estimate of 23 cents. The company had reported a loss of 3 cents per share in the year-ago quarter.
Aggregate sales in the third quarter were $1,071 million, up from $959 million reported in the year-ago tally. However, the top-line figure missed the Zacks Consensus Estimate of $1,118 million.
Segmental Break-Up
Third-quarter revenues in the United States totaled $859 million, up 13% year over year. Delivery of large petrochemical projects in the downstream sector and increased drilling and well completion activity in the upstream sector boosted the segment's quarterly top-line performance.
International sales in the reported quarter came in at $134 million, up 9% year over year. The upside primarily stemmed from stronger upstream project activity in Kazakhstan. However, unfavorable foreign exchange movement and non-recurring midstream pipeline projects dampened the segment's quarterly revenues.
Revenues from Canada marginally improved 1% year over year to $78 million. Growth in upstream and downstream businesses was partially offset by weaker midstream business performance during the Jul-Sep period. Moreover, unfavorable foreign-exchange movement had affected the segment's revenues in the reported quarter.
MRC Global Inc. Price, Consensus and EPS Surprise
MRC Global Inc. Price, Consensus and EPS Surprise | MRC Global Inc. Quote
Costs/Margins
Cost of sales during the third quarter was $899 million compared to $807 million recorded in the year-earlier quarter. Adjusted gross profit margin in the quarter came in at 20.1%, up 110 basis points (bps) year over year. The company noted that this upswing was driven by the benefits of its inventory management and gross margin strategies. Notably, the quarterly gross margin numbers recorded were the highest since first-quarter 2013.
Selling, general and administrative expenses came in at $140 million, higher than $130 million recorded in the year-earlier quarter. Operating margin was 3% in the quarter under review, up 70 bps year over year.
Balance Sheet/Cash Flow
Existing the Sep-end quarter, MRC Global had cash worth $29 million, down from $48 million recorded on Dec 31, 2017. Long-term debt at the end of the third quarter was $715 million compared to $522 million posted at the end of 2017.
In the first nine months of 2018, the company used $146 million cash from operations, as against $37 million generated in the comparable period last year. Capital expenditure during the third quarter was $15 million, down from $23 million recorded in the prior-year quarter.
In October, MRC Global's board of directors rolled out a share-repurchase program, under which it can buyback common stock worth $150 million. The program will likely expire on Dec 31, 2019.
Outlook
MRC Global expects that seasonal aspects will depress its fourth-quarter 2018 performance. Nonetheless, the company plans to combat this headwind backed by project deliveries that has been pushed from the third quarter to the fourth quarter. However, the company believes recovery in the oil & gas market conditions, increased liquidity and greater operational excellence will strengthen its near-term performances.
Stocks to Consider
MRC Global currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International Group Inc. ATKR carries a Zacks Rank #2 (Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Currently, Rockwell Automation, Inc. ROK also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 5.58% during the same time frame.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
MRC Global Inc. (MRC): 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.
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 stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report To read this article on Zacks.com click here. In October, MRC Global's board of directors rolled out a share-repurchase program, under which it can buyback common stock worth $150 million. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. MRC Global Inc. Price, Consensus and EPS Surprise MRC Global Inc. Price, Consensus and EPS Surprise | MRC Global Inc. Quote Costs/Margins Cost of sales during the third quarter was $899 million compared to $807 million recorded in the year-earlier quarter. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. MRC Global Inc. Price, Consensus and EPS Surprise MRC Global Inc. Price, Consensus and EPS Surprise | MRC Global Inc. Quote Costs/Margins Cost of sales during the third quarter was $899 million compared to $807 million recorded in the year-earlier quarter. | Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report To read this article on Zacks.com click here. Delivery of large petrochemical projects in the downstream sector and increased drilling and well completion activity in the upstream sector boosted the segment's quarterly top-line performance. | 99e6b78b-4398-44de-afd7-443bed388cc5 |
709850.0 | 2018-10-31 00:00:00 UTC | Applied Industrial (AIT) Q1 Earnings Beat, Revenues Improve | DCI | https://www.nasdaq.com/articles/applied-industrial-ait-q1-earnings-beat-revenues-improve-2018-10-31 | nan | nan | Applied Industrial Technologies, Inc.AIT reported mixed results for first-quarter fiscal 2019 (ended September 2018).
Earnings and Revenues
Quarterly adjusted earnings came in at $1.24 per share, surpassing the Zacks Consensus Estimate of $1.10. The bottom line also came in higher than the year-ago tally of 86 cents per share.
Net sales during the quarter came in at $864.5 million, up from $680.7 million recorded in the year-ago period. Quarterly revenues improved 6.9% year over year organically. However, the top line missed the Zacks Consensus Estimate of $886 million.
The company noted that adverse foreign currency-exchange impact and adoption of ASC 606 partially hurt its top line in the quarter under review.
Segmental Details
Revenues in the Service Center Based Distribution segment came in at $604 million, up 6.2% year over year. Also, aggregate sales of the Fluid Power Businesses segment were $260 million, up 133% year over year.
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote
Costs and Margins
Cost of sales in the reported quarter was $612.7 million, up 25.5% year over year. Gross profit margin came in at 29.1%, expanding 86 basis points (bps) year over year.
Selling, distribution and administrative expenses (including depreciation) totaled $185.5 million compared to $140.6 million incurred in the year-earlier period. Operating margin in the fiscal first quarter came in at 7.7%, advancing 10 bps year over year.
Balance Sheet & Cash Flow
Exiting the Sep-end quarter, Applied Industrial had cash and cash equivalents of $56.4 million compared with $54.2 million recorded at the end of fiscal 2018. The company's long-term debt was $953.2 million, higher than $944.5 million recorded as of Jun 30, 2018.
In the first three months of fiscal 2019, the company generated $11.8 million cash from operating activities compared to $9.4 million cash generated in the year-ago quarter. The company purchased property worth $3.2 million, lower than the property worth $6.3 million procured in the year-ago period.
Concurrent with the earnings release, Applied Industrial's board of directors approved the payment of a quarterly cash dividend of 30 cents per share. The dividend will be paid on Nov 30, to shareholders of record on Nov 15, 2018.
Outlook
Applied Industrial is poised to grow on the back of improved end-market sales and the FCX Performance buyout benefits. Based on the favourable market conditions, this Zacks Rank #3 (Hold) company has raised its earnings view for fiscal 2019 from the $4.48-$4.68 per share range to the $4.65-$4.85 per share range.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International Group Inc. ATKR carries a Zacks Rank #2 (Buy), at present. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Currently, Rockwell Automation, Inc. ROK also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 5.58% during the same time frame.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The company noted that adverse foreign currency-exchange impact and adoption of ASC 606 partially hurt its top line in the quarter under review. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote Costs and Margins Cost of sales in the reported quarter was $612.7 million, up 25.5% year over year. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote Costs and Margins Cost of sales in the reported quarter was $612.7 million, up 25.5% year over year. | Stocks to Consider Some better-ranked stocks in the Zacks Industrial Products sector are listed below: Donaldson Company, Inc. DCI sports a Zacks Rank #1 (Strong Buy), currently. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote Costs and Margins Cost of sales in the reported quarter was $612.7 million, up 25.5% year over year. | b68ba605-bab2-4fac-9d11-e667dccf3050 |
709851.0 | 2018-10-30 00:00:00 UTC | Milacron (MCRN) Q3 Earnings Beat Estimates, Trims '18 View | DCI | https://www.nasdaq.com/articles/milacron-mcrn-q3-earnings-beat-estimates-trims-18-view-2018-10-30 | nan | nan | Milacron Holdings Corp.MCRN delivered third-quarter 2018 adjusted earnings per share of 43 cents ahead of the Zacks Consensus Estimate of 41 cents. On a year-over-year basis earnings declined 2%.
Including one-time items, the company reported earnings per share of 21 cents in the quarter under review, improving 24% from the year-ago quarter's figure of 17 cents per share.
Operational Update
Milacron's revenues fell 2% to $308 million from the year-ago quarter. Revenues fell short of the Zacks Consensus Estimate of $320 million. Excluding favorable effects of currency movements, organic sales decreased 0.3% from the prior-year quarter. New orders in the reported quarter declined 16% year over year to $270 million.
Cost of sales during the third quarter went down 5% year over year to $206 million from the prior-year quarter. Gross profit increased 4% year over year to $103 million, with gross margin expanding 190 basis points (bps) to 33.3%.
Milacron Holdings Corp. Price, Consensus and EPS Surprise
Milacron Holdings Corp. price-consensus-eps-surprise-chart | Milacron Holdings Corp. Quote
Selling, general and administrative expenses dipped 1.5% year over year to $60 million. Adjusted EBITDA went down 1.2% to $57 million for the reported quarter from $60 million in the prior-year quarter. However, Adjusted EBITDA margin expanded 20 bps to 18.4% in the third quarter.
Segment Results
Advanced Plastic Processing Technologies: Net sales declined 5% year over year to $167 million. Excluding $1.5 million of favorable effects of currency movements, sales increased 2% from the prior-year quarter. Adjusted EBITDA dipped 2% year over year to $23 million.
Melt Delivery and Control Systems: Net sales inched up 1% year over year to $109 million. Excluding favorable influence of currency movements of $0.6 million, sales increased 2% from the prior-year period. Adjusted EBITDA remained flat year over year at $33 million.
Fluid Technologies: Net sales rose 6% year over year to $33 million. Sales improved 8% from the year-ago period, excluding $0.6 million of favorable effects of currency movements. Adjusted EBITDA increased 10% year over year to $7 million.
Financial Update
Milacron reported cash and cash equivalents of $150.3 million at the end of the reported quarter, down from $187.9 million at the end of 2017. The company generated $56 million of cash from operating activities during the nine-month period ended Sep 30, 2018, compared with $7 million reported in the comparable period last year. Long-term debt was $853 million as of Sep 30, 2018, compared with $926 million as of Dec 31, 2017.
Outlook
Milacron projects sales growth at 2% for 2018, including an anticipated benefit of 1% from foreign currency translation. The company's previous sales growth guidance was in the range of 2% to 4% for 2018. The company revised adjusted EBITDA guidance to $229-$231 million for the full year from the prior outlook of $237-$240 million. The company stated that the lowered guidance can primarily be attributed to the impact of tariffs on industry orders.
Share Price Performance
Shares of Milacron have dropped around 18% in the past year, compared with the industry 's decline of 19%.
Zacks Rank & Key Picks
Milacron currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the same industry include Donaldson Company, Inc. DCI , Enersys ENS and Tetra Tech, Inc. TTEK . Donaldson Company and Enersys sport a Zacks Rank #1 (Strong buy), while Tetra Tech carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Donaldson Company has a long-term earnings growth rate of 11.5%. The stock has gained around 8% in a year's time.
Enersys has a long-term earnings growth rate of 10%. The company's shares have gained 6% over the past year.
Tetra Tech has a long-term earnings growth rate of 14%. Its shares have rallied 35% in the past year.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same industry include Donaldson Company, Inc. DCI , Enersys ENS and Tetra Tech, Inc. TTEK . Click to get this free report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Outlook Milacron projects sales growth at 2% for 2018, including an anticipated benefit of 1% from foreign currency translation. | Better-ranked stocks in the same industry include Donaldson Company, Inc. DCI , Enersys ENS and Tetra Tech, Inc. TTEK . Click to get this free report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company and Enersys sport a Zacks Rank #1 (Strong buy), while Tetra Tech carries a Zacks Rank #2 (Buy). | Click to get this free report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same industry include Donaldson Company, Inc. DCI , Enersys ENS and Tetra Tech, Inc. TTEK . Cost of sales during the third quarter went down 5% year over year to $206 million from the prior-year quarter. | Better-ranked stocks in the same industry include Donaldson Company, Inc. DCI , Enersys ENS and Tetra Tech, Inc. TTEK . Click to get this free report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. New orders in the reported quarter declined 16% year over year to $270 million. | 00ba6bee-76ce-4cc9-a1c4-09791ba6ad2d |
709852.0 | 2018-10-28 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 10/28/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-10282018-2018-10-28 | 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.
COOPER TIRE & RUBBER CO ( CTB ) is a small-cap value stock in the Tires 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: Cooper Tire & Rubber Company is a manufacturer and marketer of replacement tires. The Company specializes in the design, manufacture, marketing and sales of passenger car, light truck, medium truck, motorcycle, and racing tires. The Company operates through four segments: North America, Latin America, Europe, and Asia. The North America segment comprises its operations in the United States and Canada. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Latin America segment comprises its operations in Mexico, Central America, and South America. The European segment has operations in the United Kingdom and the Republic of Serbia. Its the United Kingdom entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material. As of December 31, 2016, the Company operated nine manufacturing facilities and 20 distribution centers in 10 countries.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WABCO HOLDINGS INC. ( WBC ) is a mid-cap value stock in the Auto & Truck Parts 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: WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company's products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.
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.
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.
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.
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.
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 433.97% vs. 165.76% 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.
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. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company's products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions. | 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. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company's products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions. | 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 Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. Company Description: Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts. | 5a9c1e1c-c6be-4de9-9455-cc952fc18160 |
709853.0 | 2018-10-27 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 10/27/2018 | DCI | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-10272018-2018-10-27 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt . This value model looks for companies with high return on capital and earnings yields.
PROGRESS SOFTWARE CORP ( PRGS ) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% 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: Progress Software Corporation is engaged in application development. The Company operates through three segments: OpenEdge, Data Connectivity and Integration ( DCI ), and Application Development and Deployment (AppDev). The OpenEdge business segment provides the product enhancements and marketing support to its partner base. It is also focused on providing partners and direct end users with a path to develop and integrate cloud-based applications. Its solutions include Progress OpenEdge and Progress Corticon. The DCI segment is focused on its data assets, including the data integration components of its cloud offerings. Its solutions include Progress DataDirect Connect and Progress DataDirect Cloud. The AppDev business segment is focused on generating customers for its application development assets. Its solutions include Dev Tools, NativeScript, Dev Cloud, Telerik Platform, Test Studio, Sitefinity and Progress Rollbase. Its offerings span Web, mobile and data.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
DISH NETWORK CORP ( DISH ) is a large-cap value stock in the Broadcasting & Cable TV industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% 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: DISH Network Corporation is a holding company. The Company operates through two segments: Pay-TV and Broadband, and Wireless. It offers pay-TV services under the DISH brand and the Sling brand (collectively Pay-TV services). The DISH branded pay-TV service consists of Federal Communications Commission (FCC) licenses authorizing it to use direct broadcast satellite and Fixed Satellite Service spectrum, its owned and leased satellites, receiver systems, third-party broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in its operations. The Sling branded pay-TV services consist of live, linear streaming over-the-top Internet-based domestic, international and Latino video programing services. The Company markets broadband services under the dishNET brand. The Company makes investments in the research and development, wireless testing and wireless network infrastructure.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MEDNAX INC ( MD ) is a mid-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% 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: MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of December 31, 2016, the Company's national network consisted of over 3,600 affiliated physicians, including over 1,130 physicians providing neonatal clinical care, in 35 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Joel Greenblatt has returned 97.15% vs. 110.16% for the S&P 500. For more details on this strategy, click here
About Joel Greenblatt : In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
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.
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 operates through three segments: OpenEdge, Data Connectivity and Integration ( DCI ), and Application Development and Deployment (AppDev). The DCI segment is focused on its data assets, including the data integration components of its cloud offerings. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. | The Company operates through three segments: OpenEdge, Data Connectivity and Integration ( DCI ), and Application Development and Deployment (AppDev). The DCI segment is focused on its data assets, including the data integration components of its cloud offerings. 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. | The Company operates through three segments: OpenEdge, Data Connectivity and Integration ( DCI ), and Application Development and Deployment (AppDev). The DCI segment is focused on its data assets, including the data integration components of its cloud offerings. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm's underlying fundamentals and the stock's valuation. | The Company operates through three segments: OpenEdge, Data Connectivity and Integration ( DCI ), and Application Development and Deployment (AppDev). The DCI segment is focused on its data assets, including the data integration components of its cloud offerings. The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt . | 8934167a-dd66-4ca9-81af-0ae06b4ee462 |
709854.0 | 2018-10-26 00:00:00 UTC | Century Aluminum (CENX) Tops Q3 Earnings & Sales Estimates | DCI | https://www.nasdaq.com/articles/century-aluminum-cenx-tops-q3-earnings-sales-estimates-2018-10-26 | nan | nan | Century Aluminum CompanyCENX reported net loss of $20.3 million or 23 cents per share in third-quarter 2018, against net income of $20.8 million or 22 cents in the year-ago quarter.
Results in the reported quarter were negatively impacted by $16.9 million from equipment failure at Sebree, $1.7 million related to Sebree labor deal signing bonus and $9.2 million associated with inventory adjustments. Nevertheless, results were favorably impacted by $4.5 million from the extinguishment of legacy contractual obligations associated with the curtailment of the Helguvik project and $0.7 million associated with the Hawesville restart project.
Barring one-time items, adjusted earnings came in at 2 cents per share in the quarter, which surpassed the Zacks Consensus Estimate of a penny.
Century Aluminum Company Price, Consensus and EPS Surprise
Century Aluminum Company Price, Consensus and EPS Surprise | Century Aluminum Company Quote
Revenues and Shipments
The company registered revenues of $481.8 million in the reported quarter, up around 20.3% year over year. The figure beat the Zacks Consensus Estimate of $469.1 million. Shipments of primary aluminum in the quarter were 182,926 tons, down 1.1% from 184,974 tons shipped in the year-ago quarter.
Financials
As of Sep 30, 2018, the company had cash and cash equivalents of $73.4 million compared with $174.2 million in the year-ago period. Net cash used in operating activities was $59 million for the first nine months.
Outlook
Century Aluminum stated that downstream demand continues to depict strength and the trend is likely to continue moving ahead. Primary aluminum inventories across the globe have declined as projections call for a production deficit of roughly 2 million metric tons this year, per the company. Delivery and product premiums remain firm in the United States, supported partly by the business-friendly policies taken by the U.S. administration.
The company believes that it is now witnessing the end-phase of the difficult conditions that have impacted the alumina sector during 2018. It expects the alumina market to be well supplied and prices to return to historical norms, considering the resolution of these issues.
Price Performance
Century Aluminum's shares have lost 28.2% in the past three months compared with the industry 's 20.4% decline.
Zacks Rank & Key Picks
Century Aluminum currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the same sector include Tetra Tech, Inc. TTEK , Donaldson Company, Inc. DCI and Enersys ENS . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Tetra Tech has a long-term earnings growth rate of 14%. The stock has rallied 31.2% in a year's time.
Donaldson Company has a long-term earnings growth rate of 11.5%. Its shares have increased 4.6% in the past year.
Enersys has a long-term earnings growth rate of 10%. The company's shares have gained 5.3% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Century Aluminum Company (CENX): Free Stock Analysis Report
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Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
Enersys (ENS): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few better-ranked stocks in the same sector include Tetra Tech, Inc. TTEK , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Barring one-time items, adjusted earnings came in at 2 cents per share in the quarter, which surpassed the Zacks Consensus Estimate of a penny. | A few better-ranked stocks in the same sector include Tetra Tech, Inc. TTEK , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Century Aluminum Company Price, Consensus and EPS Surprise Century Aluminum Company Price, Consensus and EPS Surprise | Century Aluminum Company Quote Revenues and Shipments The company registered revenues of $481.8 million in the reported quarter, up around 20.3% year over year. | Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the same sector include Tetra Tech, Inc. TTEK , Donaldson Company, Inc. DCI and Enersys ENS . Century Aluminum CompanyCENX reported net loss of $20.3 million or 23 cents per share in third-quarter 2018, against net income of $20.8 million or 22 cents in the year-ago quarter. | A few better-ranked stocks in the same sector include Tetra Tech, Inc. TTEK , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Century Aluminum CompanyCENX reported net loss of $20.3 million or 23 cents per share in third-quarter 2018, against net income of $20.8 million or 22 cents in the year-ago quarter. | 5dd5e408-8ca8-444b-89e3-e91e446ad6d8 |
709855.0 | 2018-10-26 00:00:00 UTC | Colfax's (CFX) Q3 Earnings Beat, Revenues Miss Estimates | DCI | https://www.nasdaq.com/articles/colfaxs-cfx-q3-earnings-beat-revenues-miss-estimates-2018-10-26 | nan | nan | Colfax Corporation CFX reported mixed results for third-quarter 2018.
Earnings/Revenues
Quarterly earnings came in at 54 cents per share, up from the year-ago tally of 46 cents per share. The bottom line also surpassed the Zacks Consensus Estimate of 52 cents.
Revenues in the third quarter came in at $875.4 million, up 3.7% year over year. However, the top-line figure missed the Zacks Consensus Estimate of $893 million.
Segmental Break-Up
Revenues in the Air and Gas Handling segment in the reported quarter were $351.4 million, down 3% year over year. The Fabrication Technology segment's top-line performance improved 8.7% to $524 million.
Colfax Corporation Price, Consensus and EPS Surprise
Colfax Corporation Price, Consensus and EPS Surprise | Colfax Corporation Quote
Costs/Margins
Cost of sales in the reported quarter came in at $604.4 million, up 4.1% year over year. Gross profit margin in the quarter was 31%, down 20 basis points (bps) from the year-ago tally.
Selling, general and administrative expenses flared up 7.1% year over year to $194.8 million in the quarter. Adjusted operating margin in the Sep-end quarter was 8.7%, down 100 bps year over year.
Balance Sheet/Cash Flow
Exiting the third quarter, Colfax had cash and cash equivalents worth $285.9 million, up from $262 million recorded as of Dec 31, 2017. Long-term debt stood at $1,135.6 million, up from $1,055.3 million recorded at the end of 2017.
In the first nine months of 2018, the company generated $100.8 million cash from operating activities, down 12.1% year over year. Capital expenditures came in at $40.2 million, up 9.5% year over year.
During the Jul-Sep quarter, Colfax successfully acquired ACH Equipos Ltda. (ACH) and Advanced Combustion Inc. (ACI). These businesses are grouped under the company's Air & Gas Handling segment. Moreover, this October, Colfax closed the buyout deal of Gas Control Equipment (GCE). The business is included in the company's Fabrication Technology segment.
Outlook
In the second half of 2018, Colfax anticipates strong performance, backed by a strengthening Fabrication Technology business, margin growth in Air & Gas Handling business, and gains from restructuring initiatives. Furthermore, strategic acquisitions will support growth in unexplored markets and new business platforms, going forward. Notably, this Zacks Rank #3 (Hold) company believes the ACH and ACI acquisitions will be conducive to its 2018 revenues by more than $30 million.
Based on the existing market conditions, Colfax revised its earnings view for 2018 from $2.15-$2.30 to the $2.20-$2.30 per share range.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. AIMC sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. . You can see the complete list of today's Zacks #1 Rank stocks here .
Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
Atkore International Group Inc. ATKR carries a Zacks Rank #2 (Buy). The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
Colfax Corporation (CFX): Free Stock Analysis Report
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.
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 also sports a Zacks Rank of 1. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Colfax Corporation (CFX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, this October, Colfax closed the buyout deal of Gas Control Equipment (GCE). | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Colfax Corporation (CFX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Colfax Corporation Price, Consensus and EPS Surprise Colfax Corporation Price, Consensus and EPS Surprise | Colfax Corporation Quote Costs/Margins Cost of sales in the reported quarter came in at $604.4 million, up 4.1% year over year. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Colfax Corporation (CFX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Segmental Break-Up Revenues in the Air and Gas Handling segment in the reported quarter were $351.4 million, down 3% year over year. | Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Colfax Corporation (CFX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues in the third quarter came in at $875.4 million, up 3.7% year over year. | ef6ff46f-8924-4558-b709-ca208fc45e1f |
709856.0 | 2018-10-26 00:00:00 UTC | Roper Technologies (ROP) Q3 Earnings Top,'18 EPS View Up | DCI | https://www.nasdaq.com/articles/roper-technologies-rop-q3-earnings-top18-eps-view-up-2018-10-26 | nan | nan | Roper Technologies, Inc.ROP reported better-than-expected results for third-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at $3.09 per share, up nearly 31% year over year. The bottom-line figure also surpassed the Zacks Consensus Estimate of $2.94.
Adjusted revenues in the reported quarter came in at $1,321 million, up 12.8% year over year. The top line also outpaced the Zacks Consensus Estimate of $1,312 million. Revenues in the reported quarter improved 9% year over year on an organic basis, on the back of stellar sales generated by network, software and product businesses.
Segmental Break-Up
For the quarter, Medical & Scientific Imaging revenues increased 10.6% year over year to $380 million, while RF Technology revenues were up 16.6% to $560.4 million.
Industrial Technology revenues jumped 14.5% year over year to $229.5 million. Moreover, revenues from Energy Systems & Controls climbed 10% to $148.8 million.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. Price, Consensus and EPS Surprise | Roper Technologies, Inc. Quote
Costs/Margins
Cost of sales in the third quarter was $478.7 million, up 10.4% year over year. Adjusted gross profit margin in the quarter was 63.8%, up 80 basis points (bps) year over year.
Selling, general and administrative expenses in the reported quarter were $462.5 million, up from $415.6 million recorded in the year-ago quarter. Adjusted operating profit margin in the Sep-end quarter was 31.8%, up 180 bps year over year.
Balance Sheet/Cash Flow
Exiting the third quarter, Roper had cash and cash equivalents of $363.4 million, down from $671.3 million recorded as of Dec 31, 2017. Long-term debt stood at $4,414.3 million, up from $4,354.6 million recorded in 2017-end.
In the first nine months of 2018, the company generated $966 million cash from operating activities, higher than $865.7 million secured in the year-ago quarter.
Free cash flow in the quarter under review was $404 million, up 34% year over year.
Guidance
Buoyed by the robust performance, Roper raised its 2018 adjusted earnings guidance from $11.40-$11.56 per share to $11.69-$11.73 per share.
For fourth-quarter 2018, Roper projects adjusted earnings between $3.10 and $3.14 per share.
Conclusion
Roper holds a dominant position in most of the markets where it operates. The company has an optimum mix of highly-engineered and niche-oriented products, which help it gain market share.
Also, the company's unique asset-light business model makes it less dependent on large-scale production equipment. We are also optimistic about its expansion strategy, primarily through accretive acquisitions.
However, over the past several quarters, rising cost of goods sold remained a major concern for this Zacks Rank #4 (Sell) company, which may continue hurting its margins going forward.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. AIMC sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
Atkore International Group Inc. ATKR carries a Zacks Rank #2 (Buy). The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Roper Technologies, Inc. (ROP): Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
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.
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 also sports a Zacks Rank of 1. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The company has an optimum mix of highly-engineered and niche-oriented products, which help it gain market share. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Roper Technologies, Inc. Price, Consensus and EPS Surprise Roper Technologies, Inc. Price, Consensus and EPS Surprise | Roper Technologies, Inc. Quote Costs/Margins Cost of sales in the third quarter was $478.7 million, up 10.4% year over year. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Segmental Break-Up For the quarter, Medical & Scientific Imaging revenues increased 10.6% year over year to $380 million, while RF Technology revenues were up 16.6% to $560.4 million. | Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings/Revenues Quarterly adjusted earnings came in at $3.09 per share, up nearly 31% year over year. | 32f7e206-c6da-4785-944e-6fa49e29a540 |
709857.0 | 2018-10-25 00:00:00 UTC | Allegion (ALLE) Tops Q3 Earnings Estimates, Revises '18 View | DCI | https://www.nasdaq.com/articles/allegion-alle-tops-q3-earnings-estimates-revises-18-view-2018-10-25 | nan | nan | Allegion plc ALLE reported better-than-expected results for third-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.23 per share, outpacing the Zacks Consesus Estimate of $1.21. The bottom line also came in 20.6% higher than the year-ago tally. This stellar performance was backed by solid revenues, price-realization initiatives, increased productivity and diligent cost-cutting moves.
Revenues in the reported quarter came in at $711.5 million, up 16.8% year over year. The top line also exceeded the Zacks Consensus Estimate of $699 million. Revenues improved 8.5% year over year on an organic basis. The company stated that adverse impacts of unfavorable foreign exchange movements were offset by solid end-market sales and acquisition benefits in the reported quarter.
Segmental Break-Up
Revenues in the Americas segment rose 16.5% year over year to $530.1 million. The EMEIA (Europe, Middle East, India and Africa) segment's revenues increased 7.4% to $134.4 million. Revenues in the Asia-Pacific segment surged 61.5% from the year-ago quarter to $47 million in the reported quarter.
Allegion PLC Price, Consensus and EPS Surprise
Allegion PLC Price, Consensus and EPS Surprise | Allegion PLC Quote
Costs/Margins
In the Sep-end quarter, Allegion's cost of sales escalated 20% year over year to $402.1 million. Gross profit grew 8.6% year over year, while gross margin shrunk 150 basis points (bps) to 43.5%.
Selling and administrative expenses jumped 13.4% year over year to $167.1 million.
Adjusted operating margin contracted 90 bps to 20% in the quarter under review.
Balance Sheet/Cash Flow
Exiting the third quarter, Allegion had cash and cash equivalents of $189.7 million, down from $466.2 recorded as of Dec 31 2018. Long-term debt stood at $1,417.7 million, down from $1,442.3 million recorded in 2017-end.
In the first nine months of 2018, the company generated net cash of $260.4 million from its operating activities, surging 53.2% from the year-ago period. Capital expenditures totaled $31.8 million against $33.7 million used in the comparable period last year.
Outlook
For 2018, Allegion has revised its earnings view from $4.35-$4.50 per share to $4.43-$4.50 per share range. On the other hand, revenues for the full year are now projected to be up13-13.5%, as against the prior view of 12.5-13.5%.
Stocks to Consider
Allegion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. AIMC sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. You can see the complete list of today's Zacks #1 Rank stocks here.
Atkore International Group Inc. ATKR flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Allegion PLC (ALLE): 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.
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 also sports a Zacks Rank of 1. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. This stellar performance was backed by solid revenues, price-realization initiatives, increased productivity and diligent cost-cutting moves. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Allegion PLC Price, Consensus and EPS Surprise Allegion PLC Price, Consensus and EPS Surprise | Allegion PLC Quote Costs/Margins In the Sep-end quarter, Allegion's cost of sales escalated 20% year over year to $402.1 million. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Revenues in the reported quarter came in at $711.5 million, up 16.8% year over year. | Donaldson Company, Inc. DCI also sports a Zacks Rank of 1. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings/Revenues Quarterly adjusted earnings came in at $1.23 per share, outpacing the Zacks Consesus Estimate of $1.21. | df7123bf-a504-41a7-97fe-97adb77bcc96 |
709858.0 | 2018-10-24 00:00:00 UTC | Astec's (ASTE) Earnings & Revenues Miss Estimates in Q3 | DCI | https://www.nasdaq.com/articles/astecs-aste-earnings-revenues-miss-estimates-in-q3-2018-10-24 | nan | nan | Astec Industries, Inc.ASTE reported third-quarter 2018 earnings per share of 30 cents comparing favorably with the loss of 12 cents per share in the prior-year quarter. However, earnings missed the Zacks Consensus Estimate of 59 cents. Notably, the bottom-line performance marked the company's best third-quarter performance since 2012.
Astec reported total revenues of $257 million in the quarter ended September 2018, up 2% from $252 million posted in the year-ago quarter. However, the revenue figure missed the Zacks Consensus Estimate of $277 million. Astec's domestic sales dipped 1% year over year to $194 million. However, international sales increased 12% year over year to $62 million.
Cost of sales declined 7% year over year to $198 million. Gross profit came in at $58 million, up 49% from the year-ago quarter. Gross margin expanded 720 basis points to 22.7%.
Selling, general, administrative and engineering expenses went up 12% year over year to $51 million. The company reported adjusted operating profit of $7 million against the adjusted loss of $6 million recorded in the prior-year quarter.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote
Segment Performance
Revenues for the Infrastructure Group segment declined 12% to $87 million from $99 million in the year-ago quarter. The segment reported an operating profit of $4.8 million, compared with operating loss of $12.2 million witnessed in the year-earlier quarter.
Total revenues for the Aggregate and Mining Group segment inched up 2% year over year to $102 million. Profit declined 6% year over year to $9 million.
The Energy Group segment's total revenues jumped 26% year over year to $68 million. The segment reported operating profit of $3.3 million, down 26% from $4.5 million in the comparable period last year.
Financial Position
Astec reported cash and cash equivalents of $26 million at the end of the reported quarter, down from $66 million witnessed at the end of the year-ago quarter. Receivables increased to $128 million as of Sep 30, 2018, from $110 million as of Sep 30, 2017. Inventories were at $429 million as of Sep 30, 2018, compared with $399 million as of Sep 30, 2017.
The company's total backlog declined around 20% to $309 million as of Sep 30, 2018, from $386 million as of Sep 30, 2017. Backlog improved 39% and 18% in the Aggregate and Mining Group and Energy group, respectively. Backlog in the Infrastructure Group plunged 48%. Domestic backlog decreased 28% year over year to $223 million as of Sep 30, 2018, and international backlog advanced 12% year over year to $85 million at the end of the reported quarter.
During the quarter under review, the company repurchased approximately 297,000 shares of its common stock for $14 million.
The company noted order activity has been strong since the end of the third quarter, especially for products targeted at infrastructure customers. Backed by a strong backlog and recent order growth, the company is likely to deliver improved results in the fourth quarter of 2018.
Share Price Performance
Astec's shares have depreciated 29% over the past year, compared with the industry 's decline of 7%.
Zacks Rank & Other Stocks to Consider
Astec currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here .
Other top-ranked stocks the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . All three stocks sport a Zacks Rank #1.
Atkore International has a long-term earnings growth rate of 10%. The stock has gained 10% in a year's time.
Donaldson Company has a long-term earnings growth rate of 11.5%. Its shares have rallied 8% in the past year.
Enersys has a long-term earnings growth rate of 10%. The company's shares have been up 9% over the past year.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Astec Industries, Inc. (ASTE): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Enersys (ENS): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other top-ranked stocks the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Astec Industries, Inc. (ASTE): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Backed by a strong backlog and recent order growth, the company is likely to deliver improved results in the fourth quarter of 2018. | Other top-ranked stocks the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Astec Industries, Inc. (ASTE): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Astec Industries, Inc. Price, Consensus and EPS Surprise Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote Segment Performance Revenues for the Infrastructure Group segment declined 12% to $87 million from $99 million in the year-ago quarter. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Astec Industries, Inc. (ASTE): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Other top-ranked stocks the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Astec Industries, Inc. Price, Consensus and EPS Surprise Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote Segment Performance Revenues for the Infrastructure Group segment declined 12% to $87 million from $99 million in the year-ago quarter. | Other top-ranked stocks the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Astec Industries, Inc. (ASTE): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Astec Industries, Inc. Price, Consensus and EPS Surprise Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote Segment Performance Revenues for the Infrastructure Group segment declined 12% to $87 million from $99 million in the year-ago quarter. | 81217cdc-9b2d-4d69-a9e5-2d659815e12a |
709859.0 | 2018-10-23 00:00:00 UTC | Avery Dennison (AVY) Q3 Earnings Miss, Sales Top Estimates | DCI | https://www.nasdaq.com/articles/avery-dennison-avy-q3-earnings-miss-sales-top-estimates-2018-10-23 | nan | nan | Avery Dennison CorporationAVY reported adjusted earnings of $1.45 per share in third-quarter 2018, which increased around 15% year over year. Earnings, however, missed the Zacks Consensus Estimate by a penny.
Including one-time items, the company's earnings surged 41% to $1.69 per share from $1.20 per share recorded in the year-ago quarter.
Total revenues jumped around 5% to $1.76 billion from $1.68 billion recorded in the year-earlier quarter. The revenue figure also surpassed the Zacks Consensus Estimate of $1.74 billion.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation Price, Consensus and EPS Surprise | Avery Dennison Corporation Quote
Cost of sales in the quarter went up 6% year over year to $1.30 billion. Gross profit increased around 1.7% year over year to $459 million, while gross margin contracted 80 basis points (bps) to 26.1%.
Marketing, general and administrative expenses came in at $271 million compared with $274 million reported in the year-ago quarter. Adjusted operating profit advanced 6% year over year to $189 million. Adjusted operating margin expanded 10 bps on a year-over-year basis to 10.7%.
Segmental Performance
Revenues from the Label and Graphic Materials segment climbed around 5% year over year to $1,194 million. On an organic basis, sales grew around 6%. Adjusted operating profit declined 2.5% to $147 million from the prior-year quarter.
Revenues from the Retail Branding and Information Solutions segment went up 7% to $398 million, from $374 million recorded in the year-ago quarter. On an organic basis, sales were up 8%. The segment's adjusted operating income improved around 36% to $45 million.
The Industrial and Healthcare Materials segment reported net sales of $167 million, edging down 0.8% from $ the prior-year quarter. The segment reported adjusted operating income of $15 million compared with $14 million recorded in the year-ago quarter.
Financial Updates
Avery Dennison had cash and cash equivalents of $218 million at the end of the third quarter, up from $232 million reported at the end of the prior-year quarter. The company generated $188 million in cash from operating activities for the nine-month period ended Sep 29, 2018, compared with $390 million recorded in the comparable period last year.
Avery Dennison's long-term debt decreased to $1,295 million as of Sep 29, 2018, compared with $1,298 million as of Sep 30, 2017.
During the reported quarter, Avery Dennison repurchased 0.7 million shares for a total cost of $72 million. Year to date, the company returned $306 million in cash to shareholders through a combination of share repurchases and dividends, up from $221 million for the comparable period last year.
Cost-Reduction Activities
Avery Dennison realized approximately $6 million in pre-tax savings from restructuring in the Jul-Sep quarter. The company recognized a net benefit in pretax restructuring charges of $6.4 million.
U.S. Pension Plan Termination
Avery Dennison has begun the termination process of the Avery Dennison Pension Plan - a tax-qualified U.S. defined benefit plan. The company contributed $200 million to the plan during the third quarter using commercial paper borrowings. It expects to contribute an additional estimated $30 million during 2019, to fully fund the plan and complete the transaction.
After-tax impact of actions associated with the termination will impact reported earnings per share by 50-70 cents in 2018, and an additional $4.25-$4.45 during 2019, reflecting estimated total pre-tax settlement charges in the range of $575-$600 million.
Guidance
For 2018, Avery Dennison maintained its adjusted earnings per share guidance of $5.95-$6.10.
Share Price Performance
Over the past year, Avery Dennison has outperformed its industry with respect to price performance. The stock has lost 2%, while the industry has recorded loss of around 5%.
Zacks Rank & Key Picks
Avery Dennison currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International has a long-term earnings growth rate of 10%. The stock has gained 15% in a year's time.
Donaldson Company has a long-term earnings growth rate of 11.5%. Its shares have rallied 11% in the past year.
Enersys has a long-term earnings growth rate of 10%. The company's shares have been up 15% over the past year.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. The Industrial and Healthcare Materials segment reported net sales of $167 million, edging down 0.8% from $ the prior-year quarter. | Better-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Avery Dennison Corporation Price, Consensus and EPS Surprise Avery Dennison Corporation Price, Consensus and EPS Surprise | Avery Dennison Corporation Quote Cost of sales in the quarter went up 6% year over year to $1.30 billion. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Avery Dennison Corporation Price, Consensus and EPS Surprise Avery Dennison Corporation Price, Consensus and EPS Surprise | Avery Dennison Corporation Quote Cost of sales in the quarter went up 6% year over year to $1.30 billion. | Better-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Enersys ENS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Avery Dennison CorporationAVY reported adjusted earnings of $1.45 per share in third-quarter 2018, which increased around 15% year over year. | 2fa6f071-0c37-47c4-9a66-5a5f40e5a709 |
709860.0 | 2018-10-23 00:00:00 UTC | Donaldson Enters Oversold Territory | DCI | https://www.nasdaq.com/articles/donaldson-enters-oversold-territory-2018-10-23 | 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 $50.72 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 26.3 - by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 36.4. 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 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.45% based upon the recent $52.28 share price.
A bullish investor could look at DCI's 26.3 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.
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 26.3 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 $50.72 per share. | Indeed, DCI's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.45% based upon the recent $52.28 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 $50.72 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 Tuesday, shares of DCI entered into oversold territory, changing hands as low as $50.72 per share. Indeed, DCI's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.45% based upon the recent $52.28 share price. | Indeed, DCI's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.45% based upon the recent $52.28 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 $50.72 per share. | 6cb906e9-c829-4e78-8d1e-fab21174fccf |
709861.0 | 2018-10-16 00:00:00 UTC | Why Did This Chinese Stock Rally as Its Peers Crumbled? | DCI | https://www.nasdaq.com/articles/why-did-chinese-stock-rally-its-peers-crumbled-2018-10-16 | nan | nan | 2018 has been a brutal year for many Chinese stocks, which have beeb pummeled by escalating trade tensions and rising interest rates. Shares of Baidu , Alibaba , and Tencent all dropped more than 20% over the past 12 months, and it's unclear when the bleeding will stop.
However, one major Chinese stock only lost 2% of its value since the beginning of the year, and it actually rallied 10% over the past three months as its regional peers tumbled. That stock was China Mobile (NYSE: CHL) , the country's largest wireless carrier. Let's examine the three main reasons China Mobile remained resilient during the downturn.
A defensive play with no exposure to the U.S. market
Telcos usually hold up well during market downturns because they're considered defensive plays with stable growth, wide moats, and big dividends. China Mobile, along with its peers China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA) , are also state-backed enterprises.
China Mobile was once interested in expanding into the U.S. market, but the Trump Administration blocked that move earlier this year. That setback was actually a blessing, since it eliminated the possibility of the telco getting caught in the crossfire of the escalating trade war.
One of China Mobile's main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment maker Nokia . This partnership sidesteps any drama that might arise from the use of American components in Chinese networks, or vice versa.
A rock-solid core business
This means investors should simply focus on the growth of China Mobile's user base. The company finished August with nearly 913 million wireless subscribers, representing 0.3% growth from the previous month and 4.5% growth from a year earlier.
4G customers accounted for 75.6% of its total wireless subscribers, compared to 70.6% a year earlier. Customers upgrading from 2G/3G plans boosts China Mobile's revenue per customer, which can offset slowdowns in its wireless growth. That upgrade cycle will continue as China Mobile rolls out its 5G network.
China Mobile also has a growing wireline business. It served 141.9 million wireline broadband customers in August, which represented 2.7% month-over-month growth and 43.4% year-over-year growth. The expansion of China Mobile's wireline user base gives it more bundling opportunities with pay TV and wireless services -- which should lock in more customers over the long term.
A low valuation and a solid dividend
Analysts expect China Mobile's revenue to fall 6% this year as its earnings dip 7%. Those declines can be attributed to a government-mandated reduction on wireless fees, which is aimed at boosting mobile internet penetration rates across the country.
China Mobile, China Unicom, and China Telecom all eliminated their domestic roaming charges, and agreed to reduce their mobile data fees by up to 30% this year. They also launched new plans to expand free internet access in public areas and slash their wireline prices. Those moves, along with its network upgrades, will throttle China Mobile's near-term growth.
However, looking further ahead, analysts expect China Mobile's revenue and earnings to both rise 2% next year as it moves past those headwinds. Based on those estimates, China Mobile trades at just 12 times forward earnings.
China Mobile also pays semi-annual dividends, which are re-adjusted every year based on a payout ratio of 40% to 50%, as well as occasional special dividends. Its yield has fluctuated over the past few years, but it's generally stayed between 3% to 5%.
Should you buy China Mobile?
I personally own shares of China Mobile since I think it's one of the safest plays on China's booming mobile market. The company could face tougher competition if the Chinese government goes through with its plan to merge China Unicom and China Telecom to turn the market into a duopoly, but it should remain the 800-pound gorilla of China's telco market for the foreseeable future.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One of China Mobile's main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment maker Nokia . The expansion of China Mobile's wireline user base gives it more bundling opportunities with pay TV and wireless services -- which should lock in more customers over the long term. Those declines can be attributed to a government-mandated reduction on wireless fees, which is aimed at boosting mobile internet penetration rates across the country. | One of China Mobile's main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment maker Nokia . The company finished August with nearly 913 million wireless subscribers, representing 0.3% growth from the previous month and 4.5% growth from a year earlier. Customers upgrading from 2G/3G plans boosts China Mobile's revenue per customer, which can offset slowdowns in its wireless growth. | One of China Mobile's main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment maker Nokia . China Mobile, along with its peers China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA) , are also state-backed enterprises. China Mobile, China Unicom, and China Telecom all eliminated their domestic roaming charges, and agreed to reduce their mobile data fees by up to 30% this year. | One of China Mobile's main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment maker Nokia . Customers upgrading from 2G/3G plans boosts China Mobile's revenue per customer, which can offset slowdowns in its wireless growth. However, looking further ahead, analysts expect China Mobile's revenue and earnings to both rise 2% next year as it moves past those headwinds. | 73986b1b-48e6-48e4-bb74-4d66d078307d |
709862.0 | 2018-10-12 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | DCI | https://www.nasdaq.com/articles/5-dividend-growth-stocks-upside-analyst-targets-2018-10-12 | 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 .
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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 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 PEP - 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 PEP - 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 PEP - 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 PEP - 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. | ded5b635-5a9f-4c48-bbb2-e26b059f1592 |
709863.0 | 2018-10-11 00:00:00 UTC | Century Aluminum Extends Power Contract for Mt. Holly Smelter | DCI | https://www.nasdaq.com/articles/century-aluminum-extends-power-contract-for-mt.-holly-smelter-2018-10-11 | nan | nan | Century Aluminum Company 's CENX full-owned subsidiary, Century Aluminum of South Carolina, Inc., has entered into an agreement with Santee Cooper that will enable the Goose Creek, SC plant to continue operating at half capacity. The agreement with Santee Cooper has a term till Dec 31, 2020. However, it can be terminated by Mt. Holly on a notice period of 120 days.
Per the deal, Santee Cooper will continue to service 25% of the Mt. Holly power at a standard cost-based industrial rate. The balance 75% of the power requirement is likely to be sourced from a third-party supplier at market prices that are linked to natural gas prices .
Century Aluminum plans to obtain 100% of Mt. Holly's power requirements at market rates to enable the smelter to operate at full capacity and generate employment in the future.
Century Aluminum's shares have lost 30.2% in the past three months compared with the 2.2% decline of the industry .
The company, in its second-quarter call, stated that downstream demand in most regions and sectors, particularly in the United States remains strong. This is generating attractive growth in the primary metal consumption. The Section 232 relief implemented by President Trump has also resulted in considerable investment in the primary industry, as noted by the company. It expects the U.S. primary aluminum production to increase roughly 60% year over year by the end of 2018.
The company envisions attractive trading conditions amid recent pricing volatility. Prices of alumina are above the fundamentally supported level, thanks to short-term concerns over actual and potential supply disruptions.
Century Aluminum Company Price and Consensus
Century Aluminum Company Price and Consensus | Century Aluminum Company Quote
Zacks Rank & Stocks to Consider
Century Aluminum currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering in the same sector are W.W. Grainger, Inc GWW , Tetra Tech, Inc. TTEK and Donaldson Company, Inc. DCI . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Grainger has a long-term earnings growth rate of 12.4%. The stock has rallied 78.1% in a year's time.
Tetra Tech has a long-term earnings growth rate of 14%. The company's shares have surged 36.9% in a year.
Donaldson has a long-term earnings growth rate of 11.5%. Its shares have returned 16.6% in the past year.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few better-ranked stocks worth considering in the same sector are W.W. Grainger, Inc GWW , Tetra Tech, Inc. TTEK and Donaldson Company, Inc. DCI . Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Holly's power requirements at market rates to enable the smelter to operate at full capacity and generate employment in the future. | A few better-ranked stocks worth considering in the same sector are W.W. Grainger, Inc GWW , Tetra Tech, Inc. TTEK and Donaldson Company, Inc. DCI . Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Century Aluminum Company Price and Consensus Century Aluminum Company Price and Consensus | Century Aluminum Company Quote Zacks Rank & Stocks to Consider Century Aluminum currently carries a Zacks Rank #3 (Hold). | Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks worth considering in the same sector are W.W. Grainger, Inc GWW , Tetra Tech, Inc. TTEK and Donaldson Company, Inc. DCI . Century Aluminum Company 's CENX full-owned subsidiary, Century Aluminum of South Carolina, Inc., has entered into an agreement with Santee Cooper that will enable the Goose Creek, SC plant to continue operating at half capacity. | A few better-ranked stocks worth considering in the same sector are W.W. Grainger, Inc GWW , Tetra Tech, Inc. TTEK and Donaldson Company, Inc. DCI . Click to get this free report Century Aluminum Company (CENX): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Century Aluminum Company 's CENX full-owned subsidiary, Century Aluminum of South Carolina, Inc., has entered into an agreement with Santee Cooper that will enable the Goose Creek, SC plant to continue operating at half capacity. | fc601861-ff8e-45a4-b06a-cdc711fc10ec |
709864.0 | 2018-10-11 00:00:00 UTC | Kennametal (KMT) to Gain From Restructuring Amid Cost Woes | DCI | https://www.nasdaq.com/articles/kennametal-kmt-to-gain-from-restructuring-amid-cost-woes-2018-10-11 | nan | nan | On Oct 11, we issued an updated research report on Kennametal Inc. KMT . This Zacks Rank #3 (Hold) company is poised to grow on the back of solid end-market sales and strategic restructuring moves. However, escalating cost and rising debt burden remain two major causes of concern. Indicating neutral analysts' sentiments, the Zacks Consensus Estimate for the company's earnings remained unchanged for fiscals 2019 (ending June 2019) and 2020 (ending June 2020) in the past 60 days.
Lets dig deeper into the fundamental factors influencing the stock.
Solid Top- & Bottom-Line Prospects
Kennametal's year-over-year revenue growth was 15% in fiscal 2018 (ended June 2018). Notably, the company's top-line numbers grew 12% organically in the last fiscal. The company believes sturdier demand from prime end-markets (such as aerospace, automotive, machine tool, farm machinery, highway construction, coal mining, and oil and gas exploration) will continue to bolster its revenues in the upcoming quarters. For fiscal 2019, Kennametal anticipates to secure organic revenue growth of 5-8%. By fiscal 2021, the company projects adjusted sales to be nearly $2,500-$2,600 million. Per our estimates, Kennametal's year-over-year revenue growth will be 6.7% and 4.6% for fiscal 2019 and fiscal 2020, respectively.
Over the past three months, Kennametal's shares have rallied 12.8%, outperforming 1.3% growth recorded by the industry it belongs to.
Kennametal pulled off an average positive earnings surprise of 11.21% in the past four quarters. The company believes stellar sales, price-realization efforts, diligent cost-cutting initiatives and restructuring moves (such as head-count reduction) will continue to drive its bottom-line growth in the quarters ahead. Notably, the company expects that its restructuring moves will bring in annualized pre-tax savings of roughly $10 million in fiscal 2019.
Kennametal currently projects to report earnings of $2.90-$3.20 in fiscal 2019, higher than $2.65 per share recorded in fiscal 2018. Per our estimates, the company's year-over-year earnings growth will be 18.5% and 12.7% for fiscal 2019 and fiscal 2020, respectively.
Plagued by Escalating Cost & Debt
Kennametal's cost of sales escalated 9.6% year over year in fiscal 2018. The company's costs of revenues have been rising primarily on account of material price inflation. Kennametal expects the issue to persist in fiscal 2019 as well. In addition to this, escalating operating expenses are adding on to the company's aggregate costs. Upbeat wage rates, higher sales incentives and management expenses, as well as increased overtime and temporary help costs might continue to increase operating expenses, in turn dent Kennametal's profitability in the quarters ahead.
Kennametal's long-term debt balance at the end of fourth-quarter fiscal 2018 was approximately $592 million. Though this balance represents 15% decline from the previous quarter, fresh issuance in the quarters ahead will likely increase this balance. It is worth noting here that the company issued $300 million of senior unsecured notes in the fourth quarter of fiscal 2018, as well as an amendment to a revolving currency facility in the quarter increased its borrowing capacity by $100 million to $700 million. Total debt (long-term debt plus current portion of long-term debt) at the end of the fiscal fourth quarter was $992 million, versus compared with $697 million reported at the end of third-quarter fiscal 2018. Interest expense, in fiscal 2018, flared up 4.3% year over year. We believe, if unchecked, high-debt levels can increase the company's financial obligations and prove detrimental to its profitability in the quarters ahead.
Moreover, we notice that Kennametal derives more than 50% of its revenues from the company's overseas operations. Though international diversity increases business scope, it also exposes the company to risks arising from unfavorable movement in foreign currencies and geopolitical issues. While foreign currency translation had a positive 4% impact on revenues in fiscal 2018, it is predicted to adversely impact the top line in fiscal 2019.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. AIMC sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Donaldson Company, Inc. DCI flaunts a Zacks Rank of 1. The company delivered an average positive earnings surprise of 2.29% in the trailing four quarters.
Enersys ENS also holds a Zacks Rank #1. The company generated an average positive earnings surprise of 2.86% in the last four quarters.
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Kennametal Inc. (KMT): Free Stock Analysis Report
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Enersys (ENS): 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.
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 flaunts a Zacks Rank of 1. Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. The company believes sturdier demand from prime end-markets (such as aerospace, automotive, machine tool, farm machinery, highway construction, coal mining, and oil and gas exploration) will continue to bolster its revenues in the upcoming quarters. | Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI flaunts a Zacks Rank of 1. Indicating neutral analysts' sentiments, the Zacks Consensus Estimate for the company's earnings remained unchanged for fiscals 2019 (ending June 2019) and 2020 (ending June 2020) in the past 60 days. | Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI flaunts a Zacks Rank of 1. It is worth noting here that the company issued $300 million of senior unsecured notes in the fourth quarter of fiscal 2018, as well as an amendment to a revolving currency facility in the quarter increased its borrowing capacity by $100 million to $700 million. | Donaldson Company, Inc. DCI flaunts a Zacks Rank of 1. Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Per our estimates, Kennametal's year-over-year revenue growth will be 6.7% and 4.6% for fiscal 2019 and fiscal 2020, respectively. | ac722201-5b30-4a3b-b1b1-3f84e4f48efc |
709865.0 | 2018-10-09 00:00:00 UTC | Pentair (PNR) Stock Plunges 40% YTD: What's Pulling It Down? | DCI | https://www.nasdaq.com/articles/pentair-pnr-stock-plunges-40-ytd%3A-whats-pulling-it-down-2018-10-09 | nan | nan | Shares of Pentair plcPNR have plunged 40% so far this year compared with industry's decline of 8%.
Let's take a look into the factors behind the dismal price performance.
Pentair continues to witness inflation in material and other costs. In the third quarter of 2018, segment income is anticipated to be flat while Return on Sales ("ROS") is expected to decline roughly 50 basis points mainly owing to inflation, including the impact of tariffs. The company implemented price increases in the third quarter, the benefit of which will not be realized until the fourth quarter. The company expects to deliver earnings of 52 cents in the third quarter.
The estimates for the company for the third quarter of 2018 have consequently undergone negative revisions in the past 90 days, reflecting the negative outlook of analysts. For the third quarter, the estimate has gone down 22% to 52 cents per share over the past 90 days. Estimates have moved south by 13% and 6% to $2.31 and $2.54 for fiscal 2018 and 2019, respectively.
The company has identified attractive opportunities in specific product and geographic markets, both within and outside the United States. The company is reinforcing its businesses to effectively capitalize on these opportunities through research & development, and additional sales and marketing resources. Unless it is successful in its endeavors, the company's sales growth is likely to be limited in the near term or may decline.
The company now projects $20 million of incremental growth investments, down from its initial target of $25 million. This is due to the timing of some of the investments for this year was slower in the first half.
Further sales outside the United States accounted for 40% of net sales in fiscal 2017. Fluctuations in foreign currency exchange rates, most notably the strengthening of the U.S. dollar against the euro, could have an adverse material effect on the company's revenues.
Undoubtedly, the above negatives substantiate the company's Zacks Rank #4 (Sell).
Stocks to Consider
Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . All three stocks sport a Zacks Rank #1 (Strong buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore has a long-term earnings growth rate of 10%. The stock has gained around 18% year-to-date.
Donaldson has a long-term earnings growth rate of 11.5%. The company's shares have rallied around 17% so far this year.
Flowserve has a long-term earnings growth rate of 17.3%. Its shares have rallied 27% year-to-date.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Pentair plc (PNR): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. In the third quarter of 2018, segment income is anticipated to be flat while Return on Sales ("ROS") is expected to decline roughly 50 basis points mainly owing to inflation, including the impact of tariffs. | Stocks to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Pentair plc (PNR): 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 to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. The estimates for the company for the third quarter of 2018 have consequently undergone negative revisions in the past 90 days, reflecting the negative outlook of analysts. | Stocks to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. For the third quarter, the estimate has gone down 22% to 52 cents per share over the past 90 days. | 6f74ae48-5da8-477d-a1fb-f84437539eff |
709866.0 | 2018-10-09 00:00:00 UTC | Sonoco (SON) Hikes Rigid Plastic Packaging Prices by 6-10% | DCI | https://www.nasdaq.com/articles/sonoco-son-hikes-rigid-plastic-packaging-prices-by-6-10-2018-10-09 | nan | nan | Sonoco Products CompanySON has announced that it will hike the prices for all rigid plastic packaging by 6-10% to counter the impact of the persistent rise in raw material costs. The price increase will be effective on shipments in the United States and Canada, beginning Nov 5.
The principal raw materials used by Sonoco are recovered paper, paperboard, steel, aluminum and plastic resins which are purchased from several outside sources. Notably, the company had to implement price hikes due to the escalating operating costs, including freight and other paper-making consumables.
Sonoco is focusing on the domestic and global sourcing to offset inflation. The company also uses derivatives to mitigate some of the effects of raw material and energy-cost fluctuations.
Sonoco Products Company Price
Sonoco Products Company Price | Sonoco Products Company Quote
Moreover, Sonoco is constantly seeking cost-effective methods and structure to serve its customers. It will continue to monitor market conditions, in order to determine if additional pricing actions will be required.
Sonoco's shares have outperformed the industry with respect to price over the past year, mainly due to its focus on Grow and Optimize strategy and acquisitions. Shares of the company have gained around 7% as against the 5% loss recorded by the industry during the same time frame.
Zacks Rank & Stocks to Consider
Sonoco currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Tetra Tech, Inc. TTEK . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore has a long-term earnings growth rate of 10%. The stock has gained around 29% in a year's time.
Donaldson has a long-term earnings growth rate of 11.5%. The company's shares have rallied around 24% over the past year.
Tetra Tech has a long-term earnings growth rate of 14%. Its shares have rallied 40% in the past year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Sonoco Products Company (SON): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Tetra Tech, Inc. (TTEK): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Tetra Tech, Inc. TTEK . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Sonoco Products CompanySON has announced that it will hike the prices for all rigid plastic packaging by 6-10% to counter the impact of the persistent rise in raw material costs. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Tetra Tech, Inc. TTEK . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Sonoco Products Company Price Sonoco Products Company Price | Sonoco Products Company Quote Moreover, Sonoco is constantly seeking cost-effective methods and structure to serve its customers. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Tetra Tech, Inc. TTEK . Sonoco Products Company Price Sonoco Products Company Price | Sonoco Products Company Quote Moreover, Sonoco is constantly seeking cost-effective methods and structure to serve its customers. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Tetra Tech, Inc. TTEK . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Sonoco's shares have outperformed the industry with respect to price over the past year, mainly due to its focus on Grow and Optimize strategy and acquisitions. | 479c31e8-1764-4871-ace9-cc71d3c27d27 |
709867.0 | 2018-10-08 00:00:00 UTC | Terex (TEX) Stock Plunges 18% YTD: What's Pulling It Down? | DCI | https://www.nasdaq.com/articles/terex-tex-stock-plunges-18-ytd%3A-whats-pulling-it-down-2018-10-08 | nan | nan | Shares of Terex CorporationTEX have plunged 18% so far this year compared with industry's growth of 20%.
Let's take a look into the factors behind the dismal price performance.
Terex's Cranes segment witnessed supply-chain challenges in mobile crane operations during the first half of 2018. Notably, the segment's operating results were negatively impacted by disruption in mobile cranes factory, owing to material shortages. The company anticipates the Cranes segment to incur an operating loss in the third quarter as well given the supply disruption. Though the segment is expected to return to profitability in the fourth quarter, it will suffer an operating loss for the full year. The company guides the segment's operating loss between 1% and 1.5% for fiscal 2018.
Further, Terex's margin outlook is tempered by pricing and steel cost headwinds. The imposition of tariffs has resulted in significant price increases in materials and components. Given the competitive environment, it will not always be feasible for the company to pass on the increase by implementing price hikes. This is likely to dent its margins.
The estimates for the company for the third quarter of 2018 have consequently undergone negative revision in the past 90 days, reflecting the negative outlook of analysts. For the third quarter, the estimate has gone down 6% to 74 cents per share over the past 90 days.
Undoubtedly, the above negatives substantiate the company's Zacks Rank #4 (Sell). Further, the company's stretched valuation is another concern. In case of Terex, the trailing 12-month price earnings (P/E) ratio is 16.8 while the industry's average trailing 12-month P/E ratio is pegged lower at 15.8. This implies that the stock is overvalued and consequently we caution the investors against entering the stock at this point.
Stocks to Consider
Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . All three stocks sport a Zacks Rank #1 (Strong buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore has a long-term earnings growth rate of 10%. The stock has gained around 25% in a year's time.
Donaldson has a long-term earnings growth rate of 11.5%. The company's shares have rallied around 25% over the past year.
Flowserve has a long-term earnings growth rate of 17.3%. Its shares have rallied 24% in the past year.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Terex Corporation (TEX): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the segment's operating results were negatively impacted by disruption in mobile cranes factory, owing to material shortages. | Stocks to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): 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 to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The estimates for the company for the third quarter of 2018 have consequently undergone negative revision in the past 90 days, reflecting the negative outlook of analysts. | Stocks to Consider Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Terex CorporationTEX have plunged 18% so far this year compared with industry's growth of 20%. | a6242645-3be5-4e8c-9684-2270fe1dc92d |
709868.0 | 2018-10-08 00:00:00 UTC | Will Hurricane Florence & Tariffs Impair Sonoco's Results? | DCI | https://www.nasdaq.com/articles/will-hurricane-florence-tariffs-impair-sonocos-results-2018-10-08 | nan | nan | On Oct 5, we issued an updated research report on Sonoco Products CompanySON . Notably, the company's results will be hurt by elevated costs due to damages caused by Hurricane Florence, tariffs, higher material costs and strong U.S. dollar.
Let's illustrate the factors in detail.
Hurricane Florence to Mar Sonoco's Results
Last month, Sonoco temporarily shut down its paper-mill operations in Hartsville, SC, due to unprecedented flooding from Hurricane Florence. The hurricane significantly impacted the company's manufacturing operations, comprising six uncoated recycled paperboard (URB) machines and one corrugated medium paper machine. The storm also interrupted operations at three of Sonoco's Recycling locations in North Carolina, and tube and core operation in Hartsville.
Thus, Sonoco's third-quarter 2018 results will bear the brunt of repair expenses at the Hartsville manufacturing complex and other affected locations due to damage caused by the flood. In addition, it expects to incur increased input, operational and supply-chain costs to recover from the disaster.
Tariffs & Inflation Remain Threats
Sonoco projects tariff costs - primarily for steel and aluminum, including foil laminates and labels - for second-half 2018 to be $7-$9 million. The company is also facing inflationary cost pressure from higher freight, wages, energy and elevated cost for materials, particularly resins. These factors remain headwinds for the company in third-quarter 2018.
Strong U.S. Dollar is a Concern
With a strong dollar, exports will continue to be impacted. Thus, the headwinds from a strengthening dollar will affect its industrial businesses, moving ahead.
Price Performance
Sonoco has outperformed the industry over the past year despite the above-mentioned headwinds, mainly due to its focus on Grow and Optimize strategy and acquisitions. Shares of the company have gained around 7% compared with 5% loss recorded by the industry during the same time frame.
Zacks Rank & Stocks to Consider
Sonoco currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . All three stocks sport a Zacks Rank #1 (Strong buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore has a long-term earnings growth rate of 10%. The stock has gained around 25% in a year's time.
Donaldson has a long-term earnings growth rate of 11.5%. The company's shares have rallied around 25% over the past year.
Flowserve has a long-term earnings growth rate of 17.3%. Its shares have rallied 24% in the past year.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Sonoco Products Company (SON): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Thus, Sonoco's third-quarter 2018 results will bear the brunt of repair expenses at the Hartsville manufacturing complex and other affected locations due to damage caused by the flood. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the company's results will be hurt by elevated costs due to damages caused by Hurricane Florence, tariffs, higher material costs and strong U.S. dollar. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Notably, the company's results will be hurt by elevated costs due to damages caused by Hurricane Florence, tariffs, higher material costs and strong U.S. dollar. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the company's results will be hurt by elevated costs due to damages caused by Hurricane Florence, tariffs, higher material costs and strong U.S. dollar. | 238f29ae-69ce-4f25-9715-547695ab2452 |
709869.0 | 2018-10-08 00:00:00 UTC | Dispensing Systems Buyout Aids Silgan Holdings Amid Inflation | DCI | https://www.nasdaq.com/articles/dispensing-systems-buyout-aids-silgan-holdings-amid-inflation-2018-10-08 | nan | nan | On Oct 5, we issued an updated research report on Silgan Holdings Inc.SLGN . The company is poised to gain from the Dispensing Systems acquisition, rise in capital expenditures and lower tax rates. However, lower volumes, inflated freight costs and tariffs might thwart the company's growth in the near future.
Let's illustrate the factors in detail.
Dispensing Systems Acquisition to Drive Growth
Silgan Holdings' Closures segment recorded improved results in second-quarter 2018 driven by strong performance of the Dispensing Systems business. Its closures business will also likely benefit in second-half 2018 from Dispensing Systems' operations, including synergies, continued benefits from manufacturing efficiencies and higher unit volumes.
Rising Capital Expenditures to Assist Results
For 2018, Silgan Holdings expects capital expenditures of $200 million, up from $175 million reported in the previous year. Notably, capital expenditures in 2018 will be utilized for new facilities in Fort Smith, AR and Allentown, PA. Further, the company's strong cash-flow position, based on higher operating income in each business, net improvement in working capital and lower cash taxes will drive growth.
Lower Tax Rates to Boost Earnings
Silgan Holdings expects the effective tax rate for 2018 to be 20-25%, reflecting a substantial improvement from 2017, excluding certain effective tax-rate adjustments. The lower effective tax rate for the ongoing year reflects the impact of the U.S. Tax Cuts and Jobs Act of 2017. The tax reform will likely reduce cash obligations for existing net deferred tax liabilities and enable greater flexibility to utilize global cash to invest in optimal locations.
Lower Volumes Remain a Headwind
Silgan Holdings' Metal Containers segment experienced a less favorable overhead absorption and moderately lower volumes in the June-end quarter. Specifically, more than half of the volume decline in the quarter was the result of one customer undergoing portfolio-management efforts and the associated inventory reductions. The company expects this headwind to remain through the year and impact margins.
Inflated Freight Costs to Hurt Results
Shortage of drivers and trucks due to strike led to increased fuel rates and freight. The company expects inflated freight costs to impact the current-year results.
Tariffs to Impede Silgan Holdings' Margins
Silgan Holdings' margin performance will be impacted in 2018 by material cost inflation mainly due to tariffs on steel and aluminum prices imposed by the U.S. government.
Share Price Performance
Over the past year, Silgan Holdings has underperformed the industry it belongs to. The stock has dipped 6.6%, while the industry witnessed growth of 0.1% during the same time frame.
Zacks Rank & Key Picks
Silgan Holdings currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . All three stocks sport a Zacks Rank #1 (Strong buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore has a long-term earnings growth rate of 10%. The stock has gained around 25% in a year's time.
Donaldson has a long-term earnings growth rate of 11.5%. The company's shares have rallied around 25% over the past year.
Flowserve has a long-term earnings growth rate of 17.3%. Its shares have rallied 24% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Silgan Holdings Inc. (SLGN): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The company is poised to gain from the Dispensing Systems acquisition, rise in capital expenditures and lower tax rates. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Dispensing Systems Acquisition to Drive Growth Silgan Holdings' Closures segment recorded improved results in second-quarter 2018 driven by strong performance of the Dispensing Systems business. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Lower Tax Rates to Boost Earnings Silgan Holdings expects the effective tax rate for 2018 to be 20-25%, reflecting a substantial improvement from 2017, excluding certain effective tax-rate adjustments. | Better-ranked stocks in the same industry include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The company is poised to gain from the Dispensing Systems acquisition, rise in capital expenditures and lower tax rates. | 2b00533b-f235-443c-8d86-b7e606fe42a3 |
709870.0 | 2018-10-08 00:00:00 UTC | Tetra Tech to Benefit from Solid Traction Across Markets | DCI | https://www.nasdaq.com/articles/tetra-tech-to-benefit-from-solid-traction-across-markets-2018-10-08 | nan | nan | On Oct 8, we issued an updated research report on Tetra Tech, Inc.TTEK .
In the past six months, this Zacks Rank #1 (Strong Buy) stock has yielded a return of 38.5% compared with the industry 's growth of 27.0%.
Existing Scenario
Tetra Tech has had a solid run in the recent times, owing to its impressive top-line growth, restructuring efforts and accretive acquisitions. In a bid to maximize growth prospects, the company is currently focusing on high-end consulting and engineering services that is helping it promote its high value and high margin business, thus differentiating it from peers in the marketplace.
Also, the company remains optimistic about its growth prospects across all four client sectors: U.S. federal, U.S. state and local and U.S. commercial work along with International. Based on growth rate forecast for both the U.S. federal and the U.S. state local markets, the company federal work is likely to comprise almost a third of its business and grow at a rate of 5-10% for the rest of fiscal 2018, while work for U.S. state and local clients is expected to grow 10-15% in the period. U.S. commercial work, excluding the oil and gas sector, is expected to grow in the range of 5-10%. Such positive industry trends are likely to act as catalysts for the company's growth in the long run.
Moreover, Tetra Tech believes that lucrative opportunities across the globe will continue to boost its international revenues. It expects international revenues to be driven by infrastructure programs and industrial studies and design work. Also, the previously completed acquisition of Coffey International is expected to boost the top line. Coffey's dominant foothold in the Asia-Pacific region has helped Tetra Tech win several new major programs together with the Australian Department of Defense.
This apart, its robust financial health and diligent capital deployment strategies signal brighter days ahead.
Other Key Picks
Some other top-ranked stocks from the same industry are Donaldson Company, Inc. DCI , Advanced Emissions Solutions, Inc. ADES and Casella Waste Systems, Inc. CWST . While Donaldson and Advanced Emissions sport a Zacks Rank #1, Casella Waste Systems carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Donaldson surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 2.29%.
Advanced Emissions outpaced estimates twice in the preceding four quarters, with an average earnings surprise of 16.40%.
Casella Waste Systemsexceeded estimates twice in the preceding four quarters, with an average positive earnings surprise of 30.53%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report
Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
Casella Waste Systems, Inc. (CWST): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Key Picks Some other top-ranked stocks from the same industry are Donaldson Company, Inc. DCI , Advanced Emissions Solutions, Inc. ADES and Casella Waste Systems, Inc. CWST . Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Casella Waste Systems, Inc. (CWST): Free Stock Analysis Report To read this article on Zacks.com click here. Existing Scenario Tetra Tech has had a solid run in the recent times, owing to its impressive top-line growth, restructuring efforts and accretive acquisitions. | Other Key Picks Some other top-ranked stocks from the same industry are Donaldson Company, Inc. DCI , Advanced Emissions Solutions, Inc. ADES and Casella Waste Systems, Inc. CWST . Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Casella Waste Systems, Inc. (CWST): Free Stock Analysis Report To read this article on Zacks.com click here. While Donaldson and Advanced Emissions sport a Zacks Rank #1, Casella Waste Systems carries a Zacks Rank #2 (Buy). | Other Key Picks Some other top-ranked stocks from the same industry are Donaldson Company, Inc. DCI , Advanced Emissions Solutions, Inc. ADES and Casella Waste Systems, Inc. CWST . Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Casella Waste Systems, Inc. (CWST): Free Stock Analysis Report To read this article on Zacks.com click here. Based on growth rate forecast for both the U.S. federal and the U.S. state local markets, the company federal work is likely to comprise almost a third of its business and grow at a rate of 5-10% for the rest of fiscal 2018, while work for U.S. state and local clients is expected to grow 10-15% in the period. | Other Key Picks Some other top-ranked stocks from the same industry are Donaldson Company, Inc. DCI , Advanced Emissions Solutions, Inc. ADES and Casella Waste Systems, Inc. CWST . Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Casella Waste Systems, Inc. (CWST): Free Stock Analysis Report To read this article on Zacks.com click here. Also, the company remains optimistic about its growth prospects across all four client sectors: U.S. federal, U.S. state and local and U.S. commercial work along with International. | 3f95589d-ba12-4f29-b478-6f0539ff7c70 |
709871.0 | 2018-10-06 00:00:00 UTC | Donaldson (DCI) Up 6.6% Since Last Earnings Report: Can It Continue? | DCI | https://www.nasdaq.com/articles/donaldson-dci-up-6.6-since-last-earnings-report%3A-can-it-continue-2018-10-06 | nan | nan | A month has gone by since the last earnings report for Donaldson (DCI). Shares have added about 6.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Donaldson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Donaldson's Q4 Earnings Meet, Revenues Miss Estimates
Donaldsonreported in-line earnings in fourth-quarter fiscal 2018 (ended July 2018) results.
Earnings/Revenues
Quarterly adjusted earnings came in at 58 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line came in 13.7% higher than the year-ago tally. The company noted that this upside was backed by benefits from the company's cost-reduction and price-realization initiatives.
Net sales in the reported quarter grew 9.8% year over year to $724.7 million. However, the top line missed the Zacks Consensus Estimate of $728 million.
Segmental Break-Up
Aggregate sales of the company's Engine Products segment came in at $492.2 million, up 14% year over year.
The Industrial Products segment's revenues inched up 1.9% year over year to $232.5 million.
Adjusted earnings for fiscal 2018 came in at $2.00 per share, climbing 18.3% year over year. The reported figure also marginally surpassed the Zacks Consensus Estimate of $1.99.
Net sales in fiscal 2018 improved 15.3% year over year to $2,734.2 million. The top line came in line with the Zacks Consensus Estimate.
Costs/Margins
The company's cost of sales in the fiscal fourth quarter rose 9.6% year over year to $472 million. Adjusted gross profit margin was 34.9%, up 10 basis points (bps) from the year-ago tally.
Aggregate operating expenses in the reported quarter were $145.9 million, higher than $135.2 million recorded in the year-ago quarter. Adjusted operating margin in the reported quarter was 14.7%, up 40 bps year over year.
Adjusted gross profit margin for fiscal 2018 was 34.2%, down 50 bps from the year-ago tally.
Adjusted operating margin for the fiscal was 13.9%, flat year over year.
Balance Sheet/Cash Flow
Exiting fiscal 2018, Donaldson had cash and cash equivalents of $204.7 million, down from $308.4 million recorded as of Jul 31, 2017. Long-term debt came in at $499.6 million, down from $537.3 million recorded at the end of the prior fiscal.
In fiscal 2018, the company generated $262.9 million cash from operating activities, as against $317.8 million cash generated in the year-earlier period. Capital expenditure totaled $95.9 million, up from $63.5 million recorded in the comparable period last fiscal.
Donaldson repurchased 0.3 million and 2.6 million shares for $14.3 million and $122 million in the fourth quarter and fiscal 2018, respectively.
Outlook
Donaldson is poised to grow on the back of increased business penetration in key end-markets, higher production capacity and advanced technological investments.
Nevertheless, ongoing geopolitical uncertainty and prevailing inflationary pressure remain two key causes of concern for the company.
The company anticipates generating adjusted earnings of $1.36-$2.00 per share in fiscal 2019. Also, aggregate sales growth for the fiscal is projected at 6-10%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 5.25% due to these changes.
VGM Scores
At this time, Donaldson has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Donaldson has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A month has gone by since the last earnings report for Donaldson (DCI). Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Will the recent positive trend continue leading up to its next earnings release, or is Donaldson due for a pullback? | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Donaldson (DCI). Aggregate operating expenses in the reported quarter were $145.9 million, higher than $135.2 million recorded in the year-ago quarter. | A month has gone by since the last earnings report for Donaldson (DCI). Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Costs/Margins The company's cost of sales in the fiscal fourth quarter rose 9.6% year over year to $472 million. | A month has gone by since the last earnings report for Donaldson (DCI). Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings/Revenues Quarterly adjusted earnings came in at 58 cents per share, in line with the Zacks Consensus Estimate. | 91975122-f6db-4a33-9c57-bf7732eec77d |
709872.0 | 2018-10-05 00:00:00 UTC | Here's Why You Should Buy Caterpillar (CAT) Stock Right Now | DCI | https://www.nasdaq.com/articles/heres-why-you-should-buy-caterpillar-cat-stock-right-now-2018-10-05 | nan | nan | Caterpillar Inc.CAT continues to benefit from improved end-user demand across all of its regions and most end markets, and incessant focus on cost control. Strong order rates and an increasing backlog bode well for its performance. Additional investments in expanded offerings and services along with digital initiatives like e-commerce are likely to aid this mining and construction equipment behemoth.
Over the past year, Caterpillar's shares have gone up 23.4%, faring better than industry 's growth of 23.2%. If you haven't taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead. The stock has an estimated long-term earnings growth rate of 15.6%.
Upbeat 2018 Guidance
Robust sales momentum resulting from strong order rates and an increasing backlog bode well for an improved 2018 performance. Backed by these factors along with positive economic indicators globally and many of the company's end markets, Caterpillar now anticipates earnings per share between $11.00 and $12.00 for fiscal 2018. The mid-point of the new range reflects year-over-year rise of 67%.
For fiscal 2018, the Zacks Consensus Estimate for earnings is pegged at $11.64, depicting year-over-year growth of 69%. The Zacks Consensus Estimate for revenues is pegged at $54.6 billion for fiscal 2018, projecting year-over-year growth of 20%.
Estimates Going Up
Estimates for Caterpillar have moved up in the past 90 days, reflecting the optimistic outlook of analysts. The earnings estimate for fiscal 2018 and fiscal 2019 both moved north by 8%.
Positive Earnings Surprise History
Caterpillar has outpaced the Zacks Consensus Estimate in the trailing four quarters. The company delivered a positive average earnings surprise of 31.79%.
Growth Drivers Intact
Improvement in Caterpillar's end-markets will likely aid its results. Continued improvement in U.S residential and non-residential construction along with revival in infrastructure demand after many years of underinvestment will drive revenues. President Trump's plans of big spending in infrastructure are likely to bolster Caterpillar's revenues, since it is expected to play a major role in the national infrastructure plan. Notably, infrastructure development in China will also be a catalyst. EAME is anticipated to continue to grow amid high business confidence and stability in oil-producing countries.
Global economic momentum and increasing commodity prices is restoring miners' profitability and these companies are resuming capital spending. This bodes well for the Resource Industries segment. Strong global demand for commodities is also anticipated to be a positive for heavy construction and quarry as well as aggregate customers. Sales into Oil and Gas applications are projected to increase in 2018, aided by reciprocating engines for gas compression and well servicing activity in North America. The current turbines backlog remains robust in support of the midstream pipeline business.
Sales for industrial applications will remain robust, primarily due to improving global economic conditions and higher end-user demand across most applications. Sales to the Transportation sector will benefit primarily from recent acquisitions in rail services. Rail traffic in North America has improved, with number of idled locomotives and railcars going down. Power Generation sales are improving after a multi-year downturn.
Further, the company's disciplined efforts to reduce costs will help boost margins. Meanwhile, Caterpillar continues to focus on customers and the future by investing in digital capabilities, connecting assets and job sites along with developing the next generation of more productive and efficient products.
Stock Seems Undervalued
Caterpillar has a trailing 12-month price earnings (P/E) ratio of 15.8 while the industry's average trailing 12-month P/E ratio is 16.3. Based on this ratio, the stock seems undervalued.
Attractive Rank and VGM Score Combination
Caterpillar has a Zacks Rank #2 (Buy) and a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
Such a score allows investors to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
You can see the complete list of today's Zacks #1 Rank stocks here .
Other Stocks to Consider
Investors interested in the industrial products sector may also consider other top-ranked stocks like Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . All three stocks sport a Zacks Rank #1.
Atkore has an expected long-term growth rate of 10%. Its shares have gained 30% over the past year.
Donaldson Company has an estimated long-term growth rate of 11.5%. Its shares have been up 25% in a year's time.
Flowserve has a projected long-term growth rate of 17.5%. Its shares have rallied 26% over the past year.
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Flowserve Corporation (FLS): 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Stocks to Consider Investors interested in the industrial products sector may also consider other top-ranked stocks like Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. If you haven't taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead. | Other Stocks to Consider Investors interested in the industrial products sector may also consider other top-ranked stocks like Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Upbeat 2018 Guidance Robust sales momentum resulting from strong order rates and an increasing backlog bode well for an improved 2018 performance. | Other Stocks to Consider Investors interested in the industrial products sector may also consider other top-ranked stocks like Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Backed by these factors along with positive economic indicators globally and many of the company's end markets, Caterpillar now anticipates earnings per share between $11.00 and $12.00 for fiscal 2018. | Other Stocks to Consider Investors interested in the industrial products sector may also consider other top-ranked stocks like Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Flowserve Corporation FLS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past year, Caterpillar's shares have gone up 23.4%, faring better than industry 's growth of 23.2%. | 702f09ad-f534-475d-997f-f3b8bbdceb2c |
709873.0 | 2018-10-01 00:00:00 UTC | Here's Why You Should Add Grainger (GWW) Stock Right Away | DCI | https://www.nasdaq.com/articles/heres-why-you-should-add-grainger-gww-stock-right-away-2018-10-01 | nan | nan | W.W. Grainger, Inc.GWW looks promising at the moment on the back of continuous investments in e-commerce and digital capabilities, focus on strengthening large and mid-sized customer base, and improving cost structure. We are optimistic on the company's prospects and believe this is the right time to add the stock to your portfolio, as it is poised to carry the bullish momentum ahead.
Let's delve deeper and analyze the factors that make this leading broad line supplier of facilities maintenance products a lucrative investment option.
What's Working in Favor of Grainger?
Solid Rank, Score: Grainger currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Consequently, the company appears to be a compelling investment proposition at the moment.
You can see the complete list of today's Zacks #1 Rank stocks here .
An Outperformer: Grainger's shares surged 96% in the past year, outperforming the industry 's growth of 46%.
Strong Q2, Upbeat Guidance: Grainger's second-quarter 2018 adjusted earnings per share of $4.37 improved 9% year over year. Earnings also beat the Zacks Consensus Estimate of $3.78 by 16%. The performance was aided by higher sales, operating expense leverage, lower tax rate and share count.
Backed by the last reported quarter's performance, Grainger raised 2018 sales and earnings per share guidance. The company now expects sales to be up 5.5-8.5% compared with the prior guidance of 5-8%. Further, the outlook for earnings per share is now $15.05-$16.05, from the prior range of $14.30-$15.30. The company expects volume growth to outpace the market by 300-plus basis points this year. Operating margin is anticipated to range between 11.5% and 11.9%, 50-90 basis points higher than the prior year.
Positive Earnings Surprise History: The company has surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 21.5%.
Positive Estimate Revisions, Growth Projections: The Zacks Consensus for fiscal 2018 and fiscal 2019 has gone up 1.0% and 0.6%, respectively, over the past 60 days. The Zacks Consensus Estimate for earnings is currently pegged at $16.05 for fiscal 2018 which reflects year-over-year growth of 40%. For fiscal 2019, the Zacks Consensus Estimate for earnings is pegged at $17.85, year-over-year growth of 11%.
Grainger has long-term expected earnings per share growth of 12.5%.
Superior Return on Assets (ROA): Grainger currently has a ROA of 14.0%, while the industry's ROA is 9.5%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Growth Drivers in Place: The company is focused on improving the end-to-end customer experience backed by investments in e-commerce and digital capabilities along with implementing continuous improvement initiatives within its supply chain. Sales from e-commerce accounted for around 51% of total sales in 2017.
Grainger is focused on its efforts to strengthen relationships with both large and mid-sized customers. The company has been witnessing increasing volumes across all customer groups lately.
Grainger generates revenues from the distribution of MRO (Maintenance, Repair and Operating) supplies and products, and related services. In the United States, business investment and exports are two major indicators of MRO spending. Business investment is likely to remain strong in 2018, supported by expanding global markets, lower capital costs and an improving regulatory environment. Further, exports and business non-residential investment are expected to improve.
Other Stocks to Consider
Some top-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . All three stocks sport a Zacks Rank #1.
Atkore has an expected long-term growth rate of 10%. Its shares have gained 35% over the past year.
Donaldson Company has an estimated long-term growth rate of 11.5%. Its shares have been up 25% in a year's time.
Lawson Products has a projected long-term growth rate of 17.5%. Its shares have rallied 34% over the past year.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Stocks to Consider Some top-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. W.W. Grainger, Inc.GWW looks promising at the moment on the back of continuous investments in e-commerce and digital capabilities, focus on strengthening large and mid-sized customer base, and improving cost structure. | Other Stocks to Consider Some top-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. W.W. Grainger, Inc.GWW looks promising at the moment on the back of continuous investments in e-commerce and digital capabilities, focus on strengthening large and mid-sized customer base, and improving cost structure. | Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some top-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . An Outperformer: Grainger's shares surged 96% in the past year, outperforming the industry 's growth of 46%. | Other Stocks to Consider Some top-ranked stocks in the same sector include Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Grainger has long-term expected earnings per share growth of 12.5%. | 2bad7d21-3198-4bfa-b09c-0ba7d8eecade |
709874.0 | 2018-09-30 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 9/30/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-9302018-2018-09-30 | 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.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
COOPER TIRE & RUBBER CO ( CTB ) is a small-cap growth stock in the Tires 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: Cooper Tire & Rubber Company is a manufacturer and marketer of replacement tires. The Company specializes in the design, manufacture, marketing and sales of passenger car, light truck, medium truck, motorcycle, and racing tires. The Company operates through four segments: North America, Latin America, Europe, and Asia. The North America segment comprises its operations in the United States and Canada. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Latin America segment comprises its operations in Mexico, Central America, and South America. The European segment has operations in the United Kingdom and the Republic of Serbia. Its the United Kingdom entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material. As of December 31, 2016, the Company operated nine manufacturing facilities and 20 distribution centers in 10 countries.
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.
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.
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 515.33% vs. 191.28% 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.
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 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. 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 a full detailed analysis using NASDAQ's Guru Analysis tool, click here COOPER TIRE & RUBBER CO ( CTB ) is a small-cap growth stock in the Tires industry. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. Daimler's segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. | The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. 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 Since its inception, Validea's strategy based on Benjamin Graham has returned 515.33% vs. 191.28% for the S&P 500. | The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Company is engaged in the development, production and distribution of cars, trucks and vans in Germany, and the management of the Daimler Group. 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 515.33% vs. 191.28% for the S&P 500. | 4380ef84-1623-4b5f-b05a-80fa1934277f |
709875.0 | 2018-09-30 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Warren Buffett - 9/30/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-warren-buffett-9302018-2018-09-30 | 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.
NIKE INC ( NKE ) is a large-cap growth stock in the Footwear industry. The rating according to our strategy based on Warren Buffett is 85% 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: NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company's operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. Its portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse. As of May 31, 2016, the Company focused its NIKE brand product offerings in nine categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Men's Training, Women's Training, Action Sports, Sportswear (its sports-inspired lifestyle products) and Golf. Men's Training includes its baseball and American football product offerings. It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking and outdoor activities. The Company sells a range of performance equipment and accessories under the NIKE Brand name.
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.
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 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: 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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HASBRO, INC. ( HAS ) is a large-cap growth stock in the Recreational Products 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: Hasbro, Inc. (Hasbro) is a play and entertainment company. The Company's operating segments include the U.S. and Canada, International, and Entertainment and Licensing. From toys and games to content development, including television programming, motion pictures, digital gaming and a consumer products licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company's U.S. and Canada segment is engaged in the marketing and sale of its products in the United States and Canada. The International segment is engaged in the marketing and sale of the Company's product categories to retailers and wholesalers in most countries in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where it has no direct presence. The Entertainment and Licensing segment includes the Company's consumer products licensing, digital gaming, television and movie entertainment operations.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MICHAEL KORS HOLDINGS LTD ( KORS ) is a large-cap growth stock in the Apparel/Accessories 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: Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women's apparel and accessories and men's apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The Company operates through three segments: retail, wholesale and licensing. The Retail operations consist of collection stores and lifestyle stores, including concessions and outlet stores, located primarily in the Americas (the United States, Canada and Latin America), Europe and Asia, as well as e-commerce. Wholesale revenues are principally derived from major department and specialty stores located throughout the Americas, Europe and Asia. The Company licenses its trademarks on products, such as fragrances, beauty, eyewear, leather goods, jewelry, watches, coats, men's suits, swimwear, furs and ties, as well as through geographic licenses.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
STEVEN MADDEN, LTD. ( SHOO ) is a mid-cap growth stock in the Footwear 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: Steven Madden, Ltd. and its subsidiaries design, source, market and sell name brand and private label footwear for women, men and children, and name brand and private label fashion handbags and accessories. The Company operates through five segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost and Licensing. Its products are sold through its retail stores and e-commerce Websites within the United States, Canada, Mexico and South Africa, as well as department stores, specialty stores, luxury retailers, value priced retailers, national chains, merchants and catalog retailers. It provides merchandising support to its department store customers, including in-store fixtures and signage, supervision of displays and merchandising of its various product lines. Its brands include Madden Girl, Steve Madden Men's, Madden, Steven, Stevies and Steve Madden Kids, Betsey Johnson, Superga, FREEBIRD by Steve, Report, Mad Love, Dolce Vita, Brian Atwood and Blondo.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Warren Buffett has returned 216.80% vs. 174.52% for the S&P 500. For more details on this strategy, click here
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.
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 following are the top rated Consumer Cyclical stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett . It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking and outdoor activities. | 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 MICHAEL KORS HOLDINGS LTD ( KORS ) is a large-cap growth stock in the Apparel/Accessories industry. Company Description: Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women's apparel and accessories and men's apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. | 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. As of May 31, 2016, the Company focused its NIKE brand product offerings in nine categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Men's Training, Women's Training, Action Sports, Sportswear (its sports-inspired lifestyle products) and Golf. 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: NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Company Description: Steven Madden, Ltd. and its subsidiaries design, source, market and sell name brand and private label footwear for women, men and children, and name brand and private label fashion handbags and accessories. | 1f48632f-791e-4b96-9988-ee7764dbf09c |
709876.0 | 2018-09-27 00:00:00 UTC | Pollution Control Industry Outlook: Growth Prospects Alluring | DCI | https://www.nasdaq.com/articles/pollution-control-industry-outlook%3A-growth-prospects-alluring-2018-09-27 | nan | nan | The pollution-control equipment manufacturing firms are currently witnessing a substantial uptick in new task orders backed by higher infrastructure-related work in the United States and several other emerging economies. In addition, rising demand for engineering and assessment services in disaster-related work (like California wildfires), escalating pollution-related health concerns and stringent government regulations are spurring demand for products and services offered by these companies.
Furthermore, recovery in the oil and gas market is favorably impacting the spending plans of energy exploration & production companies, in turn, driving demand for pollution-control equipment products.
Some economists, however, argue that escalating trade tensions between the Republican administration and other countries, as well as shortage in skilled workers might curb business spending over pollution-control products and services.
Nevertheless, the December 2017 tax overhaul, increased government spending, rising oil prices and the President's long-awaited $1.5-trillion infrastructure program are likely to expedite corporate investments in the days ahead.
Industry Outperforms S&P 500, Sector
The Zacks Pollution Control industry , which is a 14-stock group, has outperformed the growth recorded by its broader Zacks Industrial Products sector and the benchmark S&P 500 group, over the past year.
While the stocks in this industry have collectively rallied 30.4%, the Zacks S&P 500 Composite and Zacks Industrial Products Sector have gained 16.7% and 4.9%, respectively (the green line in the chart below represents the industry).
One-Year Price Performance
As you can see, the industry's stock market performance has been improving since the beginning of March 2018, as did the broader market.This proves that increasing global demand for pollution-control products and services has been strengthening the group's performance for the last couple of months.
Industry Trading At a Discount
Since the pollution-control equipment manufacturing companies are debt laden, it makes sense to value these based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity, but also the level of debt. For capital-intensive companies, the EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the impact of non-cash expenses.
The industry displays a favorable valuation picture, even with its outperformance over the past year. The industry, currently, has a trailing 12-month EV/EBITDA ratio of 10.8X, which is marginally below the high of 11.3X for the past year, but slightly higher than the median multiple of 10.5x.
The space is trading at a discount when compared to the market at large, as the trailing 12-month EV/EBITDA ratio for the S&P 500 is 12.0X and the median level is 11.6X.
Enterprise Value/EBITDA Ratio (TTM)
Earnings Outlook Marginally Tempered
Robust industry fundamentals and expectations of solid top-line growth will likely help the pollution-control equipment manufacturing stocks generate higher shareholder returns in the near future.
However, per some pessimistic views, tariff-related uproar may dampen the profitability of pollution-control equipment manufacturing companies. Many of these manufactures are facing margin pressures due to setbacks like shortage in skilled workers, as well as higher tariff and transit expenses, at present. Consequently, some producers are offering products at higher prices to defy bottom-line stagnation, but this might curb demand for pollution-control products and services in the long run.
But what really matters to investors is whether this group has the potential to perform better than the broader market in the quarters ahead. The earlier valuation discussion shows that market participants might be interested in gaining exposure in the stock at current levels.
One reliable measure that can help investors understand the industry's prospects for a solid price performance, going forward, is the industry's earnings outlook. Empirical research shows that earnings outlook for the industry, a reflection of the earnings revisions trend for the constituent companies, has a direct bearing on its stock market performance.
The Price & Consensus chart for the industry below shows the market's evolving bottom-up earnings expectations for the industry and the industry's aggregate stock market performance. The red line in the chart represents the Zacks measure of consensus earnings expectations for 2019, while the light blue line represents the same for 2018.
Price and Consensus: Zacks Pollution Control Industry
Zacks Industry Rank Retains Hope
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term as the industry battles trade tariffs and higher input cost inflations.
The Zacks Pollution Control industry currently carries a Zacks Industry Rank #23, which places it at the top 9% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Industry Assures Long-Term Growth
The long-term prospects for the industry are alluring. When compared with the broader Zacks S&P 500 composite, the long-term (3-5 years) EPS growth estimate for the Zacks Pollution Control industry appears promising.
The group's mean estimate of long-term EPS growth has remained stable in the past couple of months to reach the current level of 13.5%, better than 9.8% for the Zacks S&P 500 composite.
Mean Estimate of Long-Term EPS Growth Rate
In fact, the basis of this long-term EPS growth could be the recovery in top line that the Zacks Pollution Control industry has been displaying since the beginning of 2017.
Zacks Pollution Control Industry Revenues
Another important indication of the industry's solid long-term prospect is improvement in its net income before non-recurring items (BNRI). The image below clearly shows that the group's net income BNRI has been improving since the beginning of 2016.
Zacks Pollution Control Net Income BNRI
Bottom Line
The outlook analysis shows that on average, stocks within the Zacks Pollution Control industry are currently trading at a discount despite its outperformance over the broader market and sector over the past year. Enjoying a favorable Zacks Rank, the industry assures long-term growth with bright top-line prospects, although near-term earnings outlook appears slightly tempered.
Increased public and commercial demand for pollution-control equipment products and services will likely continue to hold up performances of stocks within this industry. Nevertheless, earnings outlook for these companies is marginally on the lower side, possibly on account of the prevailing supply-side setbacks.
Below, we have picked four stocks from the Zacks Pollution Control industry, with a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy). Notably, these stocks have witnessed positive earnings estimate revisions for the last 60 days.
Donaldson Company, Inc. (DCI) produces and sells filtration replacement parts and systems across the globe. The Zacks Consensus Estimate for earnings has climbed 4.4% to $2.37 for fiscal 2019 (ending July 2019). The company currently flaunts a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Tetra Tech, Inc. (TTEK) provides engineering and consulting services globally. Currently, the company carries a Zacks Rank #2. The Zacks Consensus Estimate for earnings has inched up 0.7% to $2.84for fiscal 2019 (ending September2019).
Advanced Emissions Solutions, Inc. (ADES) provides variable emission reduction technologies and related speciality chemicals in the United States. The company currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for earnings has jumped 17.3% to $2.30for 2018.
Casella Waste Systems, Inc. (CWST) is a premium vertically-integrated solid waste services company. The company carries a Zacks Rank #2, at present. The Zacks Consensus Estimate for earnings has moved up 1.4% to 71 centsfor the current year.
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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 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) produces and sells filtration replacement parts and systems across the globe. Click to get this free report 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 Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report To read this article on Zacks.com click here. The pollution-control equipment manufacturing firms are currently witnessing a substantial uptick in new task orders backed by higher infrastructure-related work in the United States and several other emerging economies. | Click to get this free report 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 Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. (DCI) produces and sells filtration replacement parts and systems across the globe. Zacks Pollution Control Net Income BNRI Bottom Line The outlook analysis shows that on average, stocks within the Zacks Pollution Control industry are currently trading at a discount despite its outperformance over the broader market and sector over the past year. | Donaldson Company, Inc. (DCI) produces and sells filtration replacement parts and systems across the globe. Click to get this free report 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 Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report To read this article on Zacks.com click here. Industry Outperforms S&P 500, Sector The Zacks Pollution Control industry , which is a 14-stock group, has outperformed the growth recorded by its broader Zacks Industrial Products sector and the benchmark S&P 500 group, over the past year. | Donaldson Company, Inc. (DCI) produces and sells filtration replacement parts and systems across the globe. Click to get this free report 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 Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report To read this article on Zacks.com click here. One-Year Price Performance As you can see, the industry's stock market performance has been improving since the beginning of March 2018, as did the broader market.This proves that increasing global demand for pollution-control products and services has been strengthening the group's performance for the last couple of months. | f65d1210-573c-49a7-bf8a-226da50ed2f2 |
709877.0 | 2018-09-25 00:00:00 UTC | Here's Why You Should Hold Deere Stock in Your Portfolio | DCI | https://www.nasdaq.com/articles/heres-why-you-should-hold-deere-stock-in-your-portfolio-2018-09-25 | nan | nan | Deere & CompanyDE has been witnessing promising growth over the past few quarters, mainly driven by strong order activity, rising replacement demand, and its focus on acquisition and precision agriculture. However, challenges in the agriculture business and elevated expenses remain headwinds.
This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 5.7%.
Below, we briefly discuss the company's potential growth drivers and possible headwinds.
Factors Favoring Deere
Price Performance
Deere's shares have outperformed the industry over the past year. The stock has gained around 23%, while the industry recorded growth of 17%.
Positive Earnings Surprise History
Deere outpaced the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 2.06%.
Underpriced
Looking at Deere's price-to-earnings ratio, shares are underpriced at the current level, which seems to be attractive for investors. The company has a trailing P/E ratio of 17.6, which is below the industry average of 18.2.
Return on Equity (ROE)
Deere's trailing 12-month ROE of 28.5% reinforces its growth potential. The company's ROE is higher than the ROE of 27.4% for the industry, highlighting the company's efficiency in using shareholders' funds.
Growth Drivers in Place
Deere estimates Agriculture and Turf equipment sales to increase about 14% in fiscal 2018, supported by robust order activity in Combine Early Order Program and order book for large tractors. Notably, industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by elevated demand for large equipment. Further, the company noted that agricultural equipment is being buoyed by replacement demand despite tensions over global trade and other geopolitical issues.
Deere's focus on precision agriculture will be a catalyst. The Intelligent Solutions Group (ISG) is the company's premier development facility specializing in creating technology used in maximizing crop yields and improving food production infrastructure. In collaboration with its product platforms, the ISG facility has been advancing Deere's precision agriculture strategy and leading the industry in machine optimization, job execution and mobile management for farmers. Moreover, the company has been aggressively investing in its portfolio of ISG tools, including precision hardware, telematics, digital solution and advanced customer support.
In addition to the above, Deere has effectively utilized M&A to help execute crop-care strategy, completing four acquisitions over the last three years, including Monosem, Hagie, Mazzotti, and King Agro. In September 2017, the company acquired Blue River Technology which has aided precision agriculture. Following this, it acquired the world's leading road-construction equipment maker - Wirtgen - in December. The buyout significantly enhances Deere's exposure to global transportation infrastructure. Finally, Deere signed a definitive agreement to acquire PLA in July 2018 which will assist it in providing innovative, cost-effective equipment, technology, and services to customers.
Headwinds for Deere
Deere's performance will be unfavorably impacted by challenges in the agriculture business. Results of the business will be hurt in fiscal 2018 by expectations of high global grain and oil seed stocks-to-use ratios. Further, the corn stocks-to-use ratio may decline in response to the rising global demand and drought conditions experienced during the first crop in Argentina. Deere will also bear the brunt of elevated expenses in fiscal 2018. The company believes an unfavorable product mix, higher overhead spending and increased incentive compensation will dampen margins.
Bottom Line
Investors might want to hold on to the stock, at present, as it has ample prospects of outperforming peers in the near future.
Stocks to Consider
Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International has a long-term earnings growth rate of 10%. The stock has rallied 39% in a year's time.
Donaldson has a long-term earnings growth rate of 11.5%. Its shares have gained 28%, over the past year.
Lawson Products has a long-term earnings growth rate of 17.5%. The company's shares have appreciated 24% in a year's time.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE has been witnessing promising growth over the past few quarters, mainly driven by strong order activity, rising replacement demand, and its focus on acquisition and precision agriculture. | Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 5.7%. | Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Growth Drivers in Place Deere estimates Agriculture and Turf equipment sales to increase about 14% in fiscal 2018, supported by robust order activity in Combine Early Order Program and order book for large tractors. | Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 5.7%. | f689d9db-ecce-4ea3-85d6-66236052f638 |
709878.0 | 2018-09-13 00:00:00 UTC | Here's Why You Should Consider Buying Donaldson (DCI) Now | DCI | https://www.nasdaq.com/articles/heres-why-you-should-consider-buying-donaldson-dci-now-2018-09-13 | nan | nan | We believe that Donaldson Company, Inc.DCI is a solid choice for investors seeking exposure in the pollution control space.
The stock, with roughly $7.4-billion market capitalization, has been upgraded to a Zacks Rank #1 (Strong Buy) on Sep 12.
The company delivered better-than-expected results in two out of the last four quarters while lagging estimates in one and posting in-line results in one. Average earnings surprise was positive 2.29%.
Why the Upgrade?
We are providing a snapshot of how Donaldson fared in fourth-quarter fiscal 2018 (ended July 2018). Though the company's earnings of 58 cents per share came in line with the Zacks Consensus Estimate, it increased 13.7% from the year-ago tally. Net sales went up 9.8% year over year on the back of 14% sales growth in Engine Products and 1.9% increase in Industrial Products.
Donaldson stands to gain from growing demand for replacement and first-fit products offered under its two segments - Engine Products and Industrial Products. It is worth mentioning here that roughly 70% of the Engine Products segment's sales are sourced from replacement products while around 40% is generated from the Industrial Products segment.
In addition, solid geographical footprint, past program wins and focus on returning higher value to shareholders remain a boon for Donaldson. The company also makes investments to boost technological expertise, develop innovative products, enhance existing production capacity and promote e-commerce business.
Another interesting aspect about Donaldson is its acquisitive nature. It completed five acquisitions since fiscal 2015. Of late, it has agreed to acquire 88% stake in U.K.-based BOFA International LTD. The buyout will be completed in first-quarter fiscal 2019 (ending October 2018). The assets acquired will become part of its Industrial Products segment, largely benefiting the segment's Industrial Filtration Solutions business.
Donaldson anticipates its Engine Products segment to gain from prevailing tailwinds, including solid On-Road, Off-Road, Aerospace and Defense, and Aftermarket business, in the near term. Also, strengthening Special Applications and Industrial Filtration Solutions businesses will drive the Industrial Products segment. The company expects sales to grow 6-10% in fiscal 2019. This, along with effective pricing actions and cost control measures, will be beneficial for bottom-line results. Earnings per share are predicted to be $2.29-$2.43 in fiscal 2019, higher than $2.00 recorded in fiscal 2018.
In the past 7 days, the company's earnings estimates for fiscal 2019 (ending July 2018) and fiscal 2020 (ending July 2020) have been revised upward by six and three brokerage firms, respectively. The Zacks Consensus Estimate for earnings now stands at $2.37 for fiscal 2019 and $2.61 for fiscal 2020, reflecting growth of 4.4% (for both the years) from the respective 60-day-ago tallies.
Donaldson Company, Inc. Price and Consensus
Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote
Moreover, the company's price performance has been impressive since the release of fiscal fourth-quarter results, with the stock yielding 6.2% return. This was way above 3.6% growth recorded by the industry .
Other Stocks to Consider
Other top-ranked stocks in the industry are Energy Recovery, Inc. ERII , Tetra Tech, Inc. TTEK and Advanced Emissions Solutions, Inc. ADES . While Energy Recovery sports a Zacks Rank #1, both Tetra Tech and Advanced Emissions Solutions carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
In the past 60 days, earnings estimates for each of these stocks improved for the current year and the next year. The average positive earnings surprise for the last four quarters was 261.11% for Energy Recovery, 10.85% for Tetra Tech and 16.40% for Advanced Emissions Solutions.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We believe that Donaldson Company, Inc.DCI is a solid choice for investors seeking exposure in the pollution control space. Click to get this free report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, solid geographical footprint, past program wins and focus on returning higher value to shareholders remain a boon for Donaldson. | Click to get this free report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. We believe that Donaldson Company, Inc.DCI is a solid choice for investors seeking exposure in the pollution control space. In the past 7 days, the company's earnings estimates for fiscal 2019 (ending July 2018) and fiscal 2020 (ending July 2020) have been revised upward by six and three brokerage firms, respectively. | Click to get this free report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. We believe that Donaldson Company, Inc.DCI is a solid choice for investors seeking exposure in the pollution control space. Donaldson stands to gain from growing demand for replacement and first-fit products offered under its two segments - Engine Products and Industrial Products. | We believe that Donaldson Company, Inc.DCI is a solid choice for investors seeking exposure in the pollution control space. Click to get this free report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings per share are predicted to be $2.29-$2.43 in fiscal 2019, higher than $2.00 recorded in fiscal 2018. | cce433e3-8782-4b50-9769-61c86c9f2528 |
709879.0 | 2018-09-12 00:00:00 UTC | Donaldson (DCI) Signs Deal to Acquire BOFA International | DCI | https://www.nasdaq.com/articles/donaldson-dci-signs-deal-to-acquire-bofa-international-2018-09-12 | nan | nan | Donaldson Company, Inc. DCI recently entered into a binding agreement to acquire 88% common stock of BOFA International LTD ('BOFA') for £79 million, in order to fortify the existing portfolio of its filtration businesses.
Inside Story
Donaldson intends to boost its competency by diversifying the company's technology-led filtration business portfolio. The company has a global distribution and manufacturing footprint for state-of-the-art filtration technologies. Against this backdrop, the aforementioned acquisition will extend Donaldson's business reach across new industrial air filtration applications and markets.
Poole, the U.K.-based BOFA designs and produces fume-extraction systems for different types of air-filtration applications. These extraction systems are utilized in electronics, printing, laser, dental and 3D printing applications. BOFA sells its fume-extraction systems to original equipment manufacturing distributors, customers and end users. The company currently anticipates generating roughly $40-million revenues in the current fiscal.
BOFA will be part of Donaldson's Industrial Filtration Solutions business and hence, has been grouped under its Industrial Products business segment. The buyout deal is subject to customary closing conditions, but Donaldson anticipates to successfully close it during first-quarter fiscal 2019 (ending October 2018).
Donaldson currently sports a Zacks Rank #1 (Strong Buy). Over the past 30 days, the Zacks Consensus Estimate for the stock moved 4.4% upward to $2.37 for fiscal 2019 (ending July 2019) and 4.4% north to $2.61 for fiscal 2020 (ending July 2020). The year-over-year earnings growth rate for the company is projected at 18.5% and 10.2% for fiscals 2019 and 2020, respectively. Over the past month, Donaldson's shares have rallied 21.8%, outperforming 12.1% growth recorded by the industry it belongs to.
Other Stocks to Consider
Some other top-ranked stocks in the same space are listed below:
Energy Recovery, Inc. ERII sports a Zacks Rank #1. The company pulled off an outstanding average positive earnings surprise of 261.11% over the preceding four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Advanced Emissions Solutions, Inc. ADES carries a Zacks Rank #2 (Buy). The company generated an average positive earnings surprise of 16.40% over the trailing four quarters.
Vertex Energy, Inc VTNR also holds a Zacks Rank of 2. The company came up with an average positive earnings surprise of 36.67% during the same time frame.
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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 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 recently entered into a binding agreement to acquire 88% common stock of BOFA International LTD ('BOFA') for £79 million, in order to fortify the existing portfolio of its filtration businesses. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Vertex Energy, Inc (VTNR): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report To read this article on Zacks.com click here. Inside Story Donaldson intends to boost its competency by diversifying the company's technology-led filtration business portfolio. | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Vertex Energy, Inc (VTNR): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI recently entered into a binding agreement to acquire 88% common stock of BOFA International LTD ('BOFA') for £79 million, in order to fortify the existing portfolio of its filtration businesses. Other Stocks to Consider Some other top-ranked stocks in the same space are listed below: Energy Recovery, Inc. ERII sports a Zacks Rank #1. | Donaldson Company, Inc. DCI recently entered into a binding agreement to acquire 88% common stock of BOFA International LTD ('BOFA') for £79 million, in order to fortify the existing portfolio of its filtration businesses. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Vertex Energy, Inc (VTNR): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past 30 days, the Zacks Consensus Estimate for the stock moved 4.4% upward to $2.37 for fiscal 2019 (ending July 2019) and 4.4% north to $2.61 for fiscal 2020 (ending July 2020). | Donaldson Company, Inc. DCI recently entered into a binding agreement to acquire 88% common stock of BOFA International LTD ('BOFA') for £79 million, in order to fortify the existing portfolio of its filtration businesses. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Vertex Energy, Inc (VTNR): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report To read this article on Zacks.com click here. Poole, the U.K.-based BOFA designs and produces fume-extraction systems for different types of air-filtration applications. | a01efbd1-fe8f-4476-b29f-f226b4d90853 |
709880.0 | 2018-09-10 00:00:00 UTC | Donaldson (DCI): Moving Average Crossover Alert | DCI | https://www.nasdaq.com/articles/donaldson-dci%3A-moving-average-crossover-alert-2018-09-10 | nan | nan | Donaldson Company, Inc. DCI is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DCI broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend.
This has already started to take place, as the stock has moved higher by 17.3% in the past four weeks. Plus, the company currently has a Zacks Rank #2 (Buy) suggesting that now could definitely be the time for this breakout candidate.
More bullishness may especially be the case when investors consider what has been happening for DCI on the earnings estimate revision front lately. No estimate has gone lower in the past two months, compared to 2 higher, while the consensus estimate has also moved higher too.
So given this move in estimates, and the positive technical factors, investors may want to watch this breakout candidate closely for more gains in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | More bullishness may especially be the case when investors consider what has been happening for DCI on the earnings estimate revision front lately. Donaldson Company, Inc. DCI is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DCI broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend. | Recently, the 50 Day Moving Average for DCI broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. DCI is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. | Donaldson Company, Inc. DCI is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DCI broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. | Donaldson Company, Inc. DCI is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DCI broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend. More bullishness may especially be the case when investors consider what has been happening for DCI on the earnings estimate revision front lately. | e8ec67f3-6394-40b7-bbc7-c74017a81b34 |
709881.0 | 2018-09-07 00:00:00 UTC | Donaldson's (DCI) Q4 Earnings Meet, Revenues Miss Estimates | DCI | https://www.nasdaq.com/articles/donaldsons-dci-q4-earnings-meet-revenues-miss-estimates-2018-09-07 | nan | nan | Donaldson Company, Inc.DCI reported in-line earnings in fourth-quarter fiscal 2018 (ended July 2018) results.
Earnings/Revenues
Quarterly adjusted earnings came in at 58 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line came in 13.7% higher than the year-ago tally. The company noted that this upside was backed by benefits from the company's cost-reduction and price-realization initiatives.
Net sales in the reported quarter grew 9.8% year over year to $724.7 million. However, the top line missed the Zacks Consensus Estimate of $728 million.
Segmental Break-Up
Aggregate sales of the company's Engine Products segment came in at $492.2 million, up 14% year over year.
The Industrial Products segment's revenues inched up 1.9% year over year to $232.5 million.
Adjusted earnings for fiscal 2018 came in at $2.00 per share, climbing 18.3% year over year. The reported figure also marginally surpassed the Zacks Consensus Estimate of $1.99.
Net sales in fiscal 2018 improved 15.3% year over year to $2,734.2 million. The top line came in line with the Zacks Consensus Estimate.
Donaldson Company, Inc. Price, Consensus and EPS Surprise
Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote
Costs/Margins
The company's cost of sales in the fiscal fourth quarter rose 9.6% year over year to $472 million. Adjusted gross profit margin was 34.9%, up 10 basis points (bps) from the year-ago tally.
Aggregate operating expenses in the reported quarter were $145.9 million, higher than $135.2 million recorded in the year-ago quarter. Adjusted operating margin in the reported quarter was 14.7%, up 40 bps year over year.
Adjusted gross profit margin for fiscal 2018 was 34.2%, down 50 bps from the year-ago tally.
Adjusted operating margin for the fiscal was 13.9%, flat year over year.
Balance Sheet/Cash Flow
Exiting fiscal 2018, Donaldson had cash and cash equivalents of $204.7 million, down from $308.4 million recorded as of Jul 31, 2017. Long-term debt came in at $499.6 million, down from $537.3 million recorded at the end of the prior fiscal.
In fiscal 2018, the company generated $262.9 million cash from operating activities, as against $317.8 million cash generated in the year-earlier period. Capital expenditure totaled $95.9 million, up from $63.5 million recorded in the comparable period last fiscal.
Donaldson repurchased 0.3 million and 2.6 million shares for $14.3 million and $122 million in the fourth quarter and fiscal 2018, respectively.
Outlook
Donaldson is poised to grow on the back of increased business penetration in key end-markets, higher production capacity and advanced technological investments.
Nevertheless, ongoing geopolitical uncertainty and prevailing inflationary pressure remain two key causes of concern for this Zacks Rank #3 (Hold) stock.
The company anticipates to generate adjusted earnings of $1.36-$2.00 per share in fiscal 2019. Also, aggregate sales growth for the fiscal is projected at 6-10%.
Stocks to Consider
Some better-ranked stocks in the same industry are listed below:
Energy Recovery, Inc. ERII sports a Zacks Rank of 1 (Strong Buy), currently. The company pulled off an outstanding average positive earnings surprise of 261.11% over the past four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Advanced Emissions Solutions, Inc. ADES holds a Zacks Rank #2 (Buy), at present. The company generated an average positive earnings surprise of 16.40% over the trailing four quarters.
Tetra Tech, Inc. TTEK also carries a Zacks Rank of 2. The company came up with an average positive earnings surprise of 10.85% during the same time frame.
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Donaldson Company, Inc. (DCI): Free Stock Analysis Report
Energy Recovery, Inc. (ERII): Free Stock Analysis Report
Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report
Tetra Tech, Inc. (TTEK): 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.
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 in-line earnings in fourth-quarter fiscal 2018 (ended July 2018) results. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Outlook Donaldson is poised to grow on the back of increased business penetration in key end-markets, higher production capacity and advanced technological investments. | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI reported in-line earnings in fourth-quarter fiscal 2018 (ended July 2018) results. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Costs/Margins The company's cost of sales in the fiscal fourth quarter rose 9.6% year over year to $472 million. | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI reported in-line earnings in fourth-quarter fiscal 2018 (ended July 2018) results. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Costs/Margins The company's cost of sales in the fiscal fourth quarter rose 9.6% year over year to $472 million. | Donaldson Company, Inc.DCI reported in-line earnings in fourth-quarter fiscal 2018 (ended July 2018) results. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Advanced Emissions Solutions, Inc. (ADES): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Costs/Margins The company's cost of sales in the fiscal fourth quarter rose 9.6% year over year to $472 million. | 7eabe1a3-c58e-4570-9248-79de145df0c3 |
709882.0 | 2018-09-06 00:00:00 UTC | Donaldson Company, Inc. (DCI) Q4 2018 Earnings Conference Call Transcript | DCI | https://www.nasdaq.com/articles/donaldson-company-inc-dci-q4-2018-earnings-conference-call-transcript-2018-09-06 | nan | nan | Donaldson Company, Inc. (NYSE: DCI)
Q4 2018 Earnings Conference Call
Sept. 6, 2018, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. My name is Kim and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson's Q4 Fiscal 2018 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press "*1" on your telephone keypad. If you would like to withdraw your question, press "#". Thank you.
Brad Pogalz, Director of Investor Relations, you may begin your conference.
Brad Pogalz -- Director of Investor Relations
Thanks, Kim. Good morning, everyone. Thank you for joining Donaldson's Fourth Quarter and Full-Year 2018 Earnings Conference Call. With me today are Tod Carpenter, Chairman, CEO, and President of Donaldson, and Scott Robinson, Chief Financial Officer. Tod and Scott will provide a summary of our fiscal 2018 performance and an overview of our plans for 2019.
During today's call, we will reference non-GAAP metrics, such as adjusted earnings per share. You can find 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, the most important of which are described in our press release and SEC filings.
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Now I'll turn the call over to Tod Carpenter. Tod?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Thanks, Brad. Good morning, everyone. We had a strong finish to a strong year and we are pleased with our performance. Fourth quarter sales were up 10% and adjusted EPS was up almost 14%. We grew fourth quarter operating margin 40 basis points from last year, reflecting our actions to improve gross margin and drive expense leverage. For the year, our company achieved record sales of more than $2.7 billion and record adjusted earnings of $2.00 per share. We also held our operating margin flat with the prior year despite significant demand-related pressures and incremental investments related to our strategic priorities.
I want to thank our employees for their commitment to executing these priorities while supporting our customers. I'm confident their efforts further strengthened our reputation as a top-tier supplier while positioning us for future success.
We have excellent momentum across our company as we head into 2019, which we expect will be another year of record sales and profit. Scott and I will provide more details later in the call, so I will now turn to a recap of our sales performance.
Fourth quarter sales grew 10% to $725 million, reflecting growth in both segments. Engine continues to lead the company, with sales increasing 14% to $492 million. The performance drivers are unchanged. Supportive market conditions are compounding the benefits from a significant amount of past program wins.
Within On-Road, continued strength in the U.S. and China drove sales up 36% to a new quarterly record. The U.S. market continues to benefit from higher production of Class A trucks and China is all about share gains. Sales in China were up six fold last quarter and this region grew to 10% of total On-Road sales in fiscal 2018, up from 3% in 2017. As local manufacturers shift their production toward higher performance equipment, our company is well-positioned to capture a greater share of China's massive market.
Strength in our Off-Road business, which grew 18% last quarter, remains broad based. We are experiencing growth in all major regions and markets, and benefits from program wins are also contributing to Off-Road growth. For example, sales of fuel filters, including those with our Synteq XP media, were up in the mid-20% range last quarter. Given that we continue to enjoy strong program win rates, we see a long runway for these products.
Sales of aftermarket products were up 11% last quarter, reflecting comparable growth in both the OE and independent channels. Markets with greater exposure to oil and gas continued to drive our independent channel and past program wins are supporting the OE aftermarket channel.
Combined sales of innovative air and fuel products grew in the high teens, including PowerCore up in the mid-20% range. Aftermarket sales of PowerCore have grown every quarter this decade and growth is still outpacing legacy technology after more than 15 years in production. We are seeing similar trends as we ramp up other products with a similar value proposition, further validating our "razor to sell razor blades" strategy.
Lastly in Engine, our fourth quarter sales in Aerospace and Defense were up 14%. Higher sales of aerospace replacement parts were partially offset by declining defense replacement parts, as we had a strong comparison last year, reflecting the somewhat lumpy nature of these orders.
Sales in our Industrial segment were mixed last quarter, with a total increase of 2%, experiencing headwind from Gas Turbine Systems or GTS. As expected, sales of GTS were down 37%. Strong sales in replacement parts only partially offset the forecasted decline in large turbine projects. We expect the large turbine market to remain under pressure, which further supports the strategic choice we made more than two years ago. By selectively pursuing large turbine projects while increasing our focus on replacement parts, we significantly improved the profitability of GTS on a rate and dollar basis.
Outside of GTS, market conditions continued to improve. Sales of Industrial Filtration Solutions, or IFS, grew nearly 9% last quarter. New equipment sales were up in the mid-single digits while replacement parts grew in the low double digits. Although our process filtration business is less than 10% of IFS today, it's growing rapidly. Sales were up in the high 20% range last quarter and they continue to accelerate as we invest in this business. Products like our LifeTec filters for the food and beverage industry are an important part of our growth strategy and we are very encouraged by the customer response.
Fourth quarter sales of Special Applications were up 14%, reflecting growth across this business, including disk drive and venting solutions. Within disk drives, market strength from cloud storage and near-line capacity temporarily offset the secular pressure on hard disk drives.
Across the company, fourth quarter performance built on the theme we have been experiencing all year: favorable market conditions compound the benefits from consistently strong execution of our strategy. Since our business trough in fiscal 2016, we have added more than half a billion dollars in sales. The Engine segment reached an all-time high in fiscal '18 of $1.85 billion, driven by growth in all business units. We also had strong results in the Industrial segment, with total sales topping $885 million. If you set aside GTS, where we have strategically reduced sales, the remainder of the Industrial segment also set a record in fiscal 2018.
We are proud of our 2018 performance and we expect to deliver another year of solid results in 2019. We are forecasting local currency sales growth between 8% and 12% and EPS is projected up in the mid-teens to low 20% range. We also expect to deliver incremental margin in the low 20% range, which lines up with our historic average despite continued pressure from inflation.
I'll now turn the call over to Scott for an overview of our key performance metrics. Scott?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Thanks, Tod. Good morning, everyone. As Tod said, we had a strong finish to the year. Fourth quarter sales were up 10%, operating margin increased 40 basis points, and adjusted EPS grew 14%, which excluded a $0.20 benefit related to tax reform. Fourth quarter operating margin was 14.7%, reflecting expense leverage and modest gross margin improvement. Price increases initiated earlier this calendar year began to take hold, which fully offset pressure from raw materials inflation and other demand-related costs.
On the operating expense line, sales leverage easily offset higher freight costs. Operating profit in the quarter was also up for both segments, with Engine growing 80 basis points to 15.3% and Industrial growing 200 basis points to 17.2%. Rate improvement, including price realization benefits combined with leverage of higher sales, were strong contributors. Segment favorability was partially offset by higher corporate and unallocated expenses, with the pension settlement cost being the largest single driver.
Our fourth quarter tax expense included a $26 million benefit related to tax reform. Excluding the benefit, our tax rate was 26.2% compared to 25.6% last year. Pressure from foreign withholding tax and other reform-related matters, combined with an unfavorable mix of earnings, more than offset tailwinds from a lower U.S. corporate tax rate, stock option activity, and settlements.
We invested $23 million of CapEx last quarter and $96 million for the year to support initiatives like new capacity and e-commerce. We also returned $217 million of cash to shareholders last year through share repurchase and dividends. Our balance sheet is in good shape as we head into 2019. We ended the year with a net leverage ratio of 0.7 times, which includes last year's $35 million discretionary contribution to our U.S. pension plans. As working capital needs have gone up with sales, the flexibility offered by tax reform remains a valuable benefit. We continue to optimize global cash to better align the balance sheet with our long-term growth opportunities.
Reflecting on the full-year, we are proud of what we accomplished. We grew our sales by 15% and kept operating expense growth to 12% despite higher compensation expense and investments related to our strategic initiatives. This strong leverage allowed us to absorb gross margin pressure from a variety of factors, including higher supply chain costs and investments, raw materials inflation, and an unfavorable mix of sales. We remain committed to delivering incremental levels of profit of increasing sales, which is a core component of our fiscal 2019 plan.
Before going through the outlook, I wanted to touch on two new accounting standards that we are adopting this year. The first is related to pension accounting, which requires us to move certain costs and income out of operating margin. We will restate prior periods as we report our 2019 results, creating a like-for-like presentation. For reference, this change reduces the fiscal 2018 operating margin by about 10 basis points.
The other new standard is related to revenue recognition. One component of this standard is net versus gross accounting and it affects the Engine segment. Post-adoption we will record additional sales without a corresponding change to gross profit, effectively reducing margin. In this case, prior years will not be restated, creating an optical change in 2019 year-over-year performance by inflating the sales growth while diluting the gross margin and operating margin. I want to stress that the change related to net versus gross accounting and pension accounting have no impact on net income. I will highlight some specific items as I cover the 2019 guidance.
Our full-year sales forecast includes about $25 million of additional sales from the revenue recognition change. In total, we are projecting fiscal '19 sales will be up between 6% and 10% last year, or 8% to 12% if you exclude the negative impact from currency translation. Also, please note that the currency headwind of 2% will have a similar effect on both the Engine and Industrial segments. Our total year-over-year increase is primarily driven by volume growth and we are also expecting benefits of 1% to 2% from price realization.
Sales for the Engine segment are planned up 11% to 12%, which includes $25 million from revenue recognition spread across our OE and aftermarket businesses. In terms of the operating environment, we are projecting higher levels of equipment production and utilization in each of our major end markets and geographies. Additionally, benefits from program wins will drive another year of strong growth in On-Road, Off-Road, and Aftermarket. We expect increases in the mid-teens for On-Road and the high single digits for Off-Road, and that's on top of very strong growth of both businesses in 2018.
We know there are a lot of questions about the equipment production cycle, so I wanted to share a little perspective. While Class A production is likely nearing peak in the U.S., we see continued strength through our fiscal year. Additionally, international markets remain stable and new program wins add to the durability of On-Road for us.
Within Off-Road, 2019 is expected to be the third year in a row of strong growth and the forecast is still below the 2012 peak. Based on analysis of third party and OEM expectations, we think we are likely mid- versus late cycle. Specific to Donaldson, the significant number of program wins over the past several years gives us confidence that we can continue to outgrow the market.
Given the momentum in first fit production from new programs and consistently high levels of equipment utilization, we are forecasting Aftermarket growth in the high single digits. Rounding out Engine, we expect sales of Aerospace and Defense will be roughly flat, reflecting similar performance for both commercial aerospace and defense.
Turning to the Industrial segment, we are projecting a sales increase between 3% and 7%. We are planning GTS sales down in the high single digits this year. While we expect solid growth from replacement parts, we also forecast another sharp decline in sales to large turbine projects. Sales for these projects are expected to be less than 10% of GTS in 2019. As our exposure to large turbine projects has gone down, we remain pleased by the profitability gains related to our go-to-market strategy.
IFS sales are expected to be up in the high single digits. Favorable conditions in the manufacturing environment will drive sales of new equipment and replacement parts. And we also expect to deliver a strong increase in process filtration. Sales of Special Applications are forecasted in line with last year, reflecting decline of sales in disk drives being offset by growth in venting solutions.
We are forecasting a solid increase in operating margin, with a full-year rate between 14.1% and 14.5%, or 30-70 basis points above our 2018 rate when you adjust for the pension accounting change. Also note that the revenue recognition accounting change dilutes this year's operating margin by about 10 basis points when compared with 2018.
In terms of gross margin, higher costs for raw materials and freight are expected to negatively impact gross margin by about $30 million. Additionally, the revenue recognition standard creates an optical drag of about 30 basis points. Despite these pressures, benefits from price realization and other cost reduction efforts will keep gross margin roughly in line with last year. We do, however, expect to deliver more expense leverage and that's following last year's strong performance, which is the lowest expense rate in 15 years. Our targeted approach to planning created capacity for increased R&D spend and other investments in 2019 while also driving profit to the bottom line.
The midpoints of our sales and operating margin ranges imply incremental margin around 21%, which is a solid improvement from last year and in line with our historic average. We believe this level is appropriate given the opportunities to invest in our strategic initiatives and our customers, combined with the inflationary pressures we continue to face.
Moving down the P&L, we expect other income between $12 million and $16 million, interest expense of $22 million, and a tax rate between 24.7% and 26.7%. The tax rate includes a full-year benefit from U.S. rate reduction, which was partially offset by a loss of certain credits due to tax reform. We are budgeting capital expenditures of $130 million to $150 million, up from last year as we continue to add new capacity in support of our innovative, fast-growing products. We are also planning to repurchase 2% of our outstanding shares in 2019, consistent with our average over the past few years.
Altogether, our EPS is forecasted between $2.29 and $2.43, implying an increase of about 14% to 21% from last year's adjusted EPS. In terms of cadence, sales will have a similar front half/back half split as last year. We planned a moderating growth rate in Engine over the course of the year and we expect some variability in Industrial, due primarily to GTS. For reference, we expect first half GTS sales down in the teens and a more modest decline in the second half of 2019.
In terms of operating margin, we are forecasting comparable levels, year-over-year improvement between first and second half of 2019.
Our plans for 2019 reflect strong top-line growth, incremental levels of profits on increasing sales, and disciplined capital deployment that reflects investment in the company and returning cash to shareholders. We enter 2019 with solid momentum and I am confident that achieving our strategic and financial targets will create value for all our stakeholders.
I'll now turn the call back to Tod. Tod?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Thanks, Scott. We had strong performance last year in those areas tied to our strategic growth priorities, like engine, air, fuel, and hydraulics, along with industrial dust collection, process filtration, and venting solutions. Supportive market conditions amplified benefits from our investments, allowing us to deliver record sales and adjusted earnings per share. Although there is global uncertainty related to trade, and we still expect inflationary pressure on raw materials and freight, our plan reflects new sales and profit records in 2019.
Additionally, we are planning to grow our incremental margin while maintaining investments in strategic opportunities. We will continue to pursue near- and long-term growth opportunities in certain business. Liquid filtration in Engine and dust collection and process filtration in Industrial are prime examples, and we will also continue to develop connective solutions for both segments. Large OEM customers in the Engine segment are valuing connected filters as a tool to improve their product offering, while the ILT space in Industrial is more about how we support the end user. We have many dust collectors already giving us data from the field and our deep knowledge of filtration performance will help us build a strong offering that creates additional value for our customers.
Growing our R&D spend is another top priority for us. We increased the spend by roughly 10% in 2018 and we expect a similar increase this year. We are pursuing several initiatives to expand further into markets where customers place a high value on technology. Products that meet these needs typically command gross margins above our company average, which supports our business case for these incremental R&D investments.
We are also enhancing the way customers engage with us by leveraging our e-commerce site, shop.donaldson.com. Over the past nine months, we moved through pilot phase and have made excellent progress transitioning existing customers to the new platform. By year end, we recorded $100 million in revenue from nearly 1,500 customers in more than 100 countries. Our agenda for 2019 includes enhancements to functionality and performance as we make it even easier for customers to do business with us.
Our global capacity investments are also motivated by providing an excellent customer experience. Roughly two-thirds of our fiscal '19 capital expenditures will support existing products and tooling and start-up from new program wins. Innovative products like PowerCore and our high-tech fuel filters are driving the biggest capacity needs as we consider current and projected demand.
Given the strong market conditions, some of our planned investments are being accelerated into 2019 to better position us for the long-term. An additional benefit of new capacity is helping to reset our supply chain. Given the higher than expected demand last year, we made the choice to invest in our customers and maintain our reputation as a top-tier supplier. In certain situations, we temporarily sub-optimized our supply chain to meet the demand. While we view that choice as the appropriate long-term decision, it came with a near-term cost that we plan to normalize over time with new capacity.
Our employees showed incredible commitment last year, as they worked to support our customers while pressing forward on our strategic priorities. I again want to thank them for their contributions and I am confident our alignment as a global team will result in a great 2019 as we pursue a robust agenda that drives toward our mission of leading the world in filtration solutions.
Now I'll turn the call back to Kim to open the lines for questions. Kim?
Questions and Answers:
Operator
At this time, I would like to remind everyone, in order to ask a question, please press "*1" on your telephone keypad. Your first question comes from George Godfrey from C.L. King. Your line is open.
George Godfrey -- C.L. King & Associates -- Analyst
Thank you for taking my question. Good morning, gentlemen.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Good morning.
George Godfrey -- C.L. King & Associates -- Analyst
Just two. The first one is it was nice to see the price increase push through and I'm just curious if you can segment how much of the price increase is strictly input, higher cost-related, versus pricing that's being raised for value-related on Donaldson products. And then secondly, the CapEx, a pretty significant increase this year versus last. Can you just give some more detail on where the incremental spending is going? Thanks.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Sure. This is Scott. The price increase, we've been focused on addressing our increasing raw materials costs and that's what our price increases have been primarily focused on. So, in the fourth quarter you saw an improvement in our gross margin of 10 basis points, so we were happy with that. But it's really been focused on addressing the increased commodity costs.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
And relative to CapEx, George, this is Tod. Our capacity expansion across both our air and liquid-based products, including PowerCore and our proprietary liquid filtration solutions, are really driving much of that CapEx increase year-over-year in order to meet our customer demands. And we talked a little bit about how we will have a protracted timeframe in order to normalize our supply chain and make it efficient for our customer base. And that's really what's happening here.
George Godfrey -- C.L. King & Associates -- Analyst
Great. Thank you for taking my questions.
Operator
Your next question comes from Charley Bradley from SunTrust. Your line is open.
Patrick Wu -- SunTrust Robinson Humphrey -- Analyst
Good morning. This is actually Patrick Wu standing in for Charley. Thanks for taking my questions.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Good morning, Patrick.
Patrick Wu -- SunTrust Robinson Humphrey -- Analyst
Morning. I just wanted to -- I hear you speak a little bit about the, obviously, capacity expansion. I just wanted to get a sense of where you guys are at now versus where would you like to be, I guess, by fiscal '19. And how are utilization rates looking for you in the facilities that you guys are running?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Sure, Patrick. This is Tod. On our air capacity, we're at a utilization rate of about 80% to 90% companywide, and on liquid we're above 90%. We have a new manufacturing footprint coming online for liquid this month, so that will be ramping up over the current fiscal year, and we will be bringing on additional capacity on air throughout this current fiscal year and actually into 2020. We have a five-year CapEx plan across our operations and what we are doing is accelerating some of that into 2019 and 2020 and that's across all regions in the world.
Patrick Wu -- SunTrust Robinson Humphrey -- Analyst
Okay. That's good color. And I just wanted to have a question on your other income expectations for fiscal '19. It seems like it's a step up from fiscal '18, although I guess when you look back historically, it's not very different from, I guess, your other years. But I just wanted to get a sense of where the increase -- I guess, what is going to drive that increase, at least versus fiscal '18.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, you're right in that the guidance this year of $12 million to $16 million is certainly above last year. The biggest driver of that has to do with the new literature on pension accounting. The literature requires us to shift the income we generate on our pension investments out of operating income and into other income and expense, so that's gonna be a drag on operating income and an increase in other income for next year. So, that's the biggest piece.
Patrick Wu -- SunTrust Robinson Humphrey -- Analyst
I appreciate the color. Good quarter. Thank you.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Thank you.
Operator
Your next question comes from Nathan Jones from Stifel. Your line is open.
Nathan Jones -- Stifel Nicolaus -- Analyst
Just to follow up on that other income question, because you had $5 million in 2018 and the press release does talk about $3 million that would have been in there in 2018 out of the pension change, which would still leave $5 million to $9 million of additional other income. Is there anything else in there of note? OR is the '19 estimate on the pension stuff higher than what it would have been for '18?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
No, the biggest piece is clearly the income generated from our pension investments. And then we do have slightly lower FX losses planned for next year. So, those two pieces make up the difference.
Nathan Jones -- Stifel Nicolaus -- Analyst
Okay, thanks. That's helpful. Then I'd like to talk about something more interesting: the incremental growth investments. You stepped up growth investments in 2018. It sounds like you're gonna step up R&D spending and maybe some other growth investments in 2019. Can you give us an idea of how much that's dragging on income on a year-over-year basis? And then maybe if you could just talk a little bit about some of the benefits you're seeing from the investments that you've made previously and what kinds of things we're investing in in 2019 and beyond to drive growth.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Sure. This is Tod. I'll start maybe and talk about the things that we're investing in and then Brad can get a little bit more into the model-based numbers. So, the things that we're investing in within the R&D segment are what we highlighted in our comments. Things like venting solutions. Our food and beverage initiative is going quite well. And then core-based products, such as liquid. We have wonderful wins in our Synteq XP based products in liquid and so we'll continue to invest in that, as well as the PowerCore and additional air-based investments.
And then lastly, I do want to highlight connectivity. So, connectivity in both segments of our company are getting a nice investment. And connectivity is important, particularly as we go direct to that end user in the industrial base space, where we have tons of dust collectors across this country right now feeding millions of pieces of data to us, and with our filtration expertise, we believe that we can turn that into a revenue-generating opportunity going forward. And so we have a good investment in that as well. And so maybe I'll let Brad then talk a little more specifics about the numbers.
Brad Pogalz -- Director of Investor Relations
Sure. Nathan, this is Brad. All else equal, R&D, you can think about that as going up another $5 million to $6 million. But part of our expense planning for this year was to make sure we create capacity to absorb that. The last years we took a step up with a significant number of new projects, beginning in '18 essentially at the same time, we don't expect that this year. R&D will go up where we're funding that with other initiatives. And all the things Tod mentioned are also choices that we're making to invest in. And we're not viewing that as incremental to our overall expense.
Nathan Jones -- Stifel Nicolaus -- Analyst
Okay. And then, if we think a little bit longer term, I guess both on the R&D or growth investment side and also on the CapEx side, because you're seeing that step up again, should we begin to see that plateau? Where should CapEx be longer term? Just how you're thinking about -- do we continue to ramp up these growth investments? Should we continue to see R&D increase or should it flatten out from here and where CapEx goes longer term?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, I'll start with CapEx. So, we had $130 million to $150 million. As Tod mentioned, we have a plan to increase capacity. We would expect to be at that level for the next couple years and then it would come down. And as Tod said, we've accelerated some of our capacity expansion into the near future and that's driving up our CapEx in the shorter term and then we expect it to come down.
In terms of R&D, we have a longer term goal of increasing our R&D spend to be a higher percent of revenue, so we're gonna continue to focus on running the company as efficiently as possible and making targeted investments in R&D. we're committed to generating increasing levels of profitability on increasing sales and we want to increase our R&D spend to generate new technologies and continue to find products with higher than average gross margins. So, we'll continue to invest in R&D as well as we go forward.
Nathan Jones -- Stifel Nicolaus -- Analyst
Okay. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Thanks.
Operator
Your next question comes from Laurence Alexander from Jefferies. Your line is open.
Daniel Rizzo -- Jefferies -- Analyst
Hi, this is Dan Rizzo on for Laurence. How are you doing?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Good morning. Hi, Dan.
Daniel Rizzo -- Jefferies -- Analyst
If we think about the R&D spend, as you increase that, when do you start to see new products kind of get commercialized? What's the timeframe in terms of from when you come up with something to versus when it's gonna flow through to meaningful sales and earnings?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
So, it's elongated, Dan. What you have is, on food and beverage activities, we highlighted that in the call today that we are seeing revenue generation on that investment immediately. We are also seeing revenue generation on some of the liquid-based initiatives that we had with Synteq XP, etc., and we talk about the wins there. But beyond that, we also have some that will be potentially years down the road before we see some revenue out of that. So, it's really a balance-based portfolio spend in order to drive additional revenues over time. I would remind you that we are a technology led filtration company and so technology investments are gonna continue to be our focal point and thus the R&D focus for us.
Daniel Rizzo -- Jefferies -- Analyst
And then you mentioned taking share in China, I think particularly in On-Road. I was just wondering, are you taking share in a cooling environment? I mean, obviously you're outperforming, but I was wondering if the environment overall is kind of flat-ish to just coming down a bit.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
In China, specifically to our share, we are low single digits, so we have a lot of runway in China. And we're able to take share now because we went into China initially on the backs of the multinational-based companies and now we're winning with Chinese national-based companies, both in On- and Off-Road, and that's what's really driving our share gain currently. So, we have a nice runway ahead of us but we are starting to experience some notable success in that region.
Daniel Rizzo -- Jefferies -- Analyst
Okay. And then finally, it doesn't appear so, but has there been any direct impacts from tariffs or are there any signs of customers reducing inventory to see how things play out? Has there been any change in customer behavior at all?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
No. There has not been any direct effects that we can attribute to tariffs about purchasing from customers or customer-based behavior. Obviously, everyone in the world is wondering about the geopolitical uncertainties. Steel is currently more of a commodity-based or raw materials headwind for us as a result of tariffs but customers are not changing behavior as a result.
Daniel Rizzo -- Jefferies -- Analyst
Thank you very much.
Operator
Your next question comes from Brian Drab with William Blair. Your line is open.
Brian Drab -- William Blair & Company -- Analyst
Hey, good morning. Thanks for taking my questions.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Good morning, Brian.
Brian Drab -- William Blair & Company -- Analyst
On the Industrial guidance for 2019, it's really solid. I'd like to just focus on the industrial filtration sub-segment for a second. And if I look at your guidance for total industrial, up 3% to 7%, with a two point FX headwind. The organic is 5% to 9% and then you've got this gas turbine and special apps, those sub-segments weighing somewhat on that growth rate. Am I correct in interpreting your organic growth expectation for industrial filtration for that sub-segment is somewhere in the, I don't know, 6% to 10% range for next year?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah. So, if you just break down the major segments -- so, our IFS segments, we would put up in the high single digits. Gas turbine would be down in the high single digits. And Special Applications would be roughly flat, whereby you have things like venting offsetting the secular decline that we expect to continue to experience in disk drives.
Brian Drab -- William Blair & Company -- Analyst
So, I guess the question is that high single digit for industrial filtration -- that's really great growth-what gives you the visibility there through fiscal '19 that you achieve that?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
It's a project-based business and CapEx spending has increased throughout the balance of the previous fiscal year. We expect that to continue. And additionally we have some very nice broad-based growth across our dust collection aftermarket organization. We expect that to continue. And then that is also the segment where our process filtration investments are really starting to pay dividends and we experienced over 20% growth in process filtration last fiscal year. We expect good growth to continue throughout 2019.
Brian Drab -- William Blair & Company -- Analyst
Okay. Got it. Thanks.
Brad Pogalz -- Director of Investor Relations
Brian. This is Brad, Brian. One quick thing. On your question about FX, you can certainly consider that IFS is under pressure in that neighborhood as a function of FX as well. So, if that was part of your first question, I want to make sure we touch on that.
Brian Drab -- William Blair & Company -- Analyst
Okay. Yeah, I was just saying you gave the guidance as 3% to 7% for the total segment and 5% to 9% would be the organic. Right? I was pointing out and clarifying. Okay. And then you put out the press release yesterday on the e-commerce site. Do you think that that is -- I guess, obviously some of those sales cannibalize sales that would have happened otherwise. Do you think that that is incremental to your growth rate in fiscal '19, just rolling out that site?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
No, it's not. So, remember, there's two types of usage across e-commerce. And the primary numbers that you're seeing today is engine-based related and so we go through distribution and we're having our customers come through the e-commerce site and so it's more of an efficiency play on that side of the company. And we're very pleased with the fact that so many of our distribution partners across the world have adopted that site and come online in order to be able to have a successful implementation. Later, as we look forward and continue to expand it, particularly over on the Industrial side of our company, that is where we will see more of an end user-based experience and that's when it will start to be incremental. We've taken into account how we believe that will play out and we baked that into our guidance currently.
Brian Drab -- William Blair & Company -- Analyst
Okay. And two more quick ones. So, the revenue guidance for total company for fiscal '19, what have you incorporated into that in terms of price? How many points of growth do you think you're getting just from price alone?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah. We have pricing in there at 1% to 2%.
Brian Drab -- William Blair & Company -- Analyst
Got it. Okay. And then kind of zooming out and a larger question, if I'm doing the math correctly, for fiscal '19 the incremental operating margin at the midpoint would be around 19%. IT's been in that kind of high teens range. I think, going back, if I would have asked Bill Cook this question ten years ago or eight years ago, the incremental margin always seemed to be a little bit higher than that, like something in the 20s or even above that in some periods. But is this kind of high teens incremental margin something that we'll see through the growth investment phase that you're in right now? Or is this -- I'm getting the sense we're probably, and should be always, kind of in the growth investment phase. And does that result in this kind of being the norm for incremental margin, something in kind of the high teens?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Brian, if you go back and rebuild our model over the last decade, you'll see that in growth periods versus trough periods that we do fluctuate. It's never been a constant low 20% range within our incremental margin. We just experienced the same thing over the last six years. And, currently, the 2019 guidance actually comes up into the low 20s, which puts us back to the average over time that we have experienced. And so we're very proud of the fact that we've been able to get our incremental margins back from low double digits back into the low 20s and really take advantage of leveraging the growth that we have.
Brad Pogalz -- Director of Investor Relations
Brian, this is Brad. Let me add one thing and we can talk more offline if it would be helpful. But I want to make sure we're starting from the same spot. We have incremental margins planned for this year in the low 20% range, and that's factoring in the pension adjustments on the fiscal '18 operating profit. So, keep in mind that that reduces the '18 operating profit by about 10 basis points. So, there's the change there. And what that low 20% range isn't factoring in is the drag that comes from revenue recognition. So, from our point of view, we think this is a pretty strong operating margin and incremental margin for the year.
Brian Drab -- William Blair & Company -- Analyst
Okay. Got it. Thanks very much.
Operator
If you would like to ask a question over the phone, please press "*1" on your telephone keypad. Your next question comes from Richard Eastman from Baird. Your line is open.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yes, good morning. If we could, could we just spend a minute or two on the gross margin here on a forward-looking basis, so for '19. I think you referenced it being flat. And could you just maybe walk through maybe the puts and takes there a little bit? I think there was a reference to price adding 1-2 percentage points to revenue. I wasn't sure, is the net price capture this year, meaning for fiscal '19, expected to be about zero? Is that what the reference was there? So, in other words, we're always up high, 1% to 2% on a blended basis? Or maybe we just walk through the puts and takes there on the gross margin line.
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Yeah, I think you got it right but let me just confirm. So, we just talked about pricing adding 1% to 2% to revenues next year. We estimate $30 million of expense headwind from increasing commodity costs. And our guidance implies that gross margins will essentially be flat. So, the pricing actions that we contemplate for next year will offset our contemplated increases in costs and gross margin will result in flat. We generate a good improvement in operating income because we're really leveraging our operating expenses.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
And then the mix here with OE strength would offset some of the volume benefits at the gross margin line? Is that the other conservative way to look at this?
Brad Pogalz -- Director of Investor Relations
Rick, this is Brad. Mix is a little bit more benign for the year. We certainly have the strength in Aftermarket, but then on top of that, some of the industrial businesses, there's very nice growth there. So, at a company level, it mixes out into more of a plus or minus. One thing I want to add on gross margin, and again with the accounting changes, what we're calling the "optical drag" on gross margin is about 30 basis points from revenue recognition. And that's year-over-year, so don't think about it as a headwind, per se, as much as just when you compare against the prior year. If we were under the old standard, gross margin, all else equal, would be 30 basis points higher at flat.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Okay. Okay, that's reasonable. And then, if I might, can I just return back on the Engine side of the business. Again, I mean, another just significant quarter here of share gains in China on the On-Road side, but also the Off-Road strength was there as well. Just kind of curious, how far do we have to run on that? I mean, you had mentioned that perhaps China was -- is it 10% of Engine sales? Was that the reference there?
Brad Pogalz -- Director of Investor Relations
Rick, it's Brad. It's 10% of Off-Road sales. So, China Off-Road -- excuse me, China On-Road represents 10% of total On-Road.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
And, Rick, our share is still very low in China and, as you know, it's a very massive market. And so we have tremendous opportunity in China still that lies ahead of us and we're really pleased with the fact that we're winning not only at multinational companies but also now in national companies. And we're winning in the Off-Road segment but also in the On-Road segment, as they continue to value technology.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Okay. Okay. And then just a last question, I'm sorry. On the Industrial side of the business, with IFS, is the mix there now running about half aftermarket and half capital equipment? And then can I just ask what that mix is but then also what did the book-to-bill look like on the capital equipment side? Were you pleased with that in the quarter? Does that give you good visibility on your full-year outlook there of kind of high single digits for all of IFS?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Rick, this is Tod. I'll start. So, the book-to-billed and order intakes do give us confidence within our forecast within 2019. And we saw CapEx spending, our project-based spending, across the manufacturing sectors picked up as we progressed through last fiscal year. We expect that to continue through this fiscal year and so we're therefore baking that within the guide. And I think Brad has that split for you.
Brad Pogalz -- Director of Investor Relations
Yeah, Rick, to answer the question about the split, it's about 50/50. It's tilted toward the new equipment this year. And I would say that that's just testimonial to the market improvement there and seeing some traction where folks are investing more in their facilities now. So, that part of the business had a really strong year.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yeah. And the method I find kind of interesting is when I look at the operating profit on the Industrial side of the business. Obviously you've done a great job protecting profitability in gas turbine with some decline we've seen in large turbine stuff. But I'm curious, the 200 basis points in operating margin within Industrial year-over-year, would you attribute the volume to aftermarket sales? Or is there anything in the mix here that's significantly more profitable? For instance, the special apps? How should we think about that operating margin improvement there, given the mix?
Scott J. Robinson -- Senior Vice President and Chief Financial Officer
Sure. It's favorable mix, for sure, in that Special Applications held in very nicely throughout the year. But it's also a tip of the cap to the excellent execution work across our GTS business in executing that strategy. That's a very tough business model for our GTS team worldwide to execute and they had an excellent year executing a strategy that really helped us drive profitability across our industrial-based businesses.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
And with large turbine stuff being less than 10% forecast for '19, presumably that business, when you look out to '20, should start to see some modest growth off of '19's base?
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
Tough to say when large turbine projects are gonna come back. I mean, if you look, for example, GE is really -- recently they sold single digit gas turbines in a quarter here. So, when will that pick up? Well, it's pretty low bottom. It's down considerably. Just not sure when we could expect that to tick up. We thought it would have moderated. As we look into 2019, clearly it has not. So we'll wait to get a little bit more data before calling bottom on that.
Richard Eastman -- Robert W. Baird & Co. -- Analyst
Yeah. Okay. Alright, fair enough. Thank you.
Brad Pogalz -- Director of Investor Relations
Thanks, Rick.
Operator
There are no further questions at this time. I now turn the call back over to Tod Carpenter.
Tod E. Carpenter -- Chairman, President, and Chief Executive Officer
That concludes today's call. I want to thank everyone listening for their time and interest in Donaldson Company. Have a good rest of the week. Goodbye.
Operator
This concludes today's conference call. You may now disconnect.
Duration:50 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
George Godfrey -- C.L. King & Associates -- Analyst
Patrick Wu -- SunTrust Robinson Humphrey -- Analyst
Nathan Jones -- Stifel Nicolaus -- Analyst
Daniel Rizzo -- Jefferies -- Analyst
Brian Drab -- William Blair & Company -- Analyst
Richard Eastman -- Robert W. Baird & Co. -- 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 Company, Inc. (NYSE: DCI) Q4 2018 Earnings Conference Call Sept. 6, 2018, 10:00 a.m. King & Associates -- Analyst Patrick Wu -- SunTrust Robinson Humphrey -- Analyst Nathan Jones -- Stifel Nicolaus -- Analyst Daniel Rizzo -- Jefferies -- Analyst Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst More DCI analysis This article is a transcript of this conference call produced for The Motley Fool. This strong leverage allowed us to absorb gross margin pressure from a variety of factors, including higher supply chain costs and investments, raw materials inflation, and an unfavorable mix of sales. | King & Associates -- Analyst Patrick Wu -- SunTrust Robinson Humphrey -- Analyst Nathan Jones -- Stifel Nicolaus -- Analyst Daniel Rizzo -- Jefferies -- Analyst Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst More DCI analysis This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, Inc. (NYSE: DCI) Q4 2018 Earnings Conference Call Sept. 6, 2018, 10:00 a.m. We grew fourth quarter operating margin 40 basis points from last year, reflecting our actions to improve gross margin and drive expense leverage. | King & Associates -- Analyst Patrick Wu -- SunTrust Robinson Humphrey -- Analyst Nathan Jones -- Stifel Nicolaus -- Analyst Daniel Rizzo -- Jefferies -- Analyst Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst More DCI analysis This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, Inc. (NYSE: DCI) Q4 2018 Earnings Conference Call Sept. 6, 2018, 10:00 a.m. Scott J. Robinson -- Senior Vice President and Chief Financial Officer Yeah, you're right in that the guidance this year of $12 million to $16 million is certainly above last year. | King & Associates -- Analyst Patrick Wu -- SunTrust Robinson Humphrey -- Analyst Nathan Jones -- Stifel Nicolaus -- Analyst Daniel Rizzo -- Jefferies -- Analyst Brian Drab -- William Blair & Company -- Analyst Richard Eastman -- Robert W. Baird & Co. -- Analyst More DCI analysis This article is a transcript of this conference call produced for The Motley Fool. Donaldson Company, Inc. (NYSE: DCI) Q4 2018 Earnings Conference Call Sept. 6, 2018, 10:00 a.m. We have incremental margins planned for this year in the low 20% range, and that's factoring in the pension adjustments on the fiscal '18 operating profit. | e9d4cdf8-e667-4cc2-a273-d4ba902f9df7 |
709883.0 | 2018-09-06 00:00:00 UTC | Donaldson (DCI) Matches Q4 Earnings Estimates | DCI | https://www.nasdaq.com/articles/donaldson-dci-matches-q4-earnings-estimates-2018-09-06 | nan | nan | Donaldson (DCI) came out with quarterly earnings of $0.58 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.52 per share when it actually produced earnings of $0.53, delivering a surprise of 1.92%.
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 $724.70 million for the quarter ended July 2018, missing the Zacks Consensus Estimate by 0.44%. This compares to year-ago revenues of $660.10 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.
Donaldson shares have added about 3.1% since the beginning of the year versus the S&P 500's gain of 8%.
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 was 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 $0.54 on $678.80 million in revenues for the coming quarter and $2.27 on $2.89 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 19% 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.
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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 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 $0.58 per share, in line with the Zacks Consensus Estimate. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. 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. | Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson (DCI) came out with quarterly earnings of $0.58 per share, in line with the Zacks Consensus Estimate. Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $724.70 million for the quarter ended July 2018, missing the Zacks Consensus Estimate by 0.44%. | Donaldson (DCI) came out with quarterly earnings of $0.58 per share, in line with the Zacks Consensus Estimate. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $724.70 million for the quarter ended July 2018, missing the Zacks Consensus Estimate by 0.44%. | Donaldson (DCI) came out with quarterly earnings of $0.58 per share, in line with the Zacks Consensus Estimate. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. | 6bc466d2-6549-4299-aeef-f7ea49c5911e |
709884.0 | 2018-09-05 00:00:00 UTC | Pre-Market Earnings Report for September 6, 2018 : DCI, NAV, GIII, MBUU, FCEL, SOL, JW.A | DCI | https://www.nasdaq.com/articles/pre-market-earnings-report-september-6-2018-dci-nav-giii-mbuu-fcel-sol-jwa-2018-09-05 | nan | nan | The following companies are expected to report earnings prior to market open on 09/06/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Donaldson Company, Inc. ( DCI ) is reporting for the quarter ending July 31, 2018. The pollution control company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.58. This value represents a 13.73% increase compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 25.27 vs. an industry ratio of 12.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Navistar International Corporation ( NAV ) is reporting for the quarter ending July 31, 2018. The auto (truck) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.91. This value represents a 145.95% increase compared to the same quarter last year. In the past year NAV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 96.43%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for NAV is 20.09 vs. an industry ratio of 11.50, implying that they will have a higher earnings growth than their competitors in the same industry.
G-III Apparel Group, LTD. ( GIII ) is reporting for the quarter ending July 31, 2018. The textile company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.02. This value represents a 113.33% increase compared to the same quarter last year. In the past year GIII has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 650%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for GIII is 18.99 vs. an industry ratio of 28.40.
Malibu Boats, Inc. ( MBUU ) is reporting for the quarter ending June 30, 2018. The leisure (recreational) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.58. This value represents a 38.10% increase compared to the same quarter last year. In the past year MBUU has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 24.29%. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2018 Price to Earnings ratio for MBUU is 20.47 vs. an industry ratio of 17.20, implying that they will have a higher earnings growth than their competitors in the same industry.
FuelCell Energy, Inc. ( FCEL ) is reporting for the quarter ending July 31, 2018. The alternative energy company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.19. This value represents a 38.71% increase compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for FCEL is -1.52 vs. an industry ratio of 28.60.
Renesola Ltd. ( SOL ) is reporting for the quarter ending June 30, 2018. The solar company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.03. This value represents a 101.91% increase compared to the same quarter last year. In the past year SOL and beat the expectations the other quarter. Zacks Investment Research reports that the 2018 Price to Earnings ratio for SOL is 9.23 vs. an industry ratio of 29.70.
John Wiley & Sons, Inc. (JW.A) is reporting for the quarter ending July 31, 2018. The book publisher company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.50. This value represents a 15.25% decrease compared to the same quarter last year. In the past year JW.A has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 16.05%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for JW.A is 0.00 vs. an industry ratio of 16.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Company, Inc. ( DCI ) is reporting for the quarter ending July 31, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 25.27 vs. an industry ratio of 12.60, implying that they will have a higher earnings growth than their competitors in the same industry. The pollution control company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.58. | Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 25.27 vs. an industry ratio of 12.60, 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 July 31, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for NAV is 20.09 vs. an industry ratio of 11.50, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 25.27 vs. an industry ratio of 12.60, 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 July 31, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for NAV is 20.09 vs. an industry ratio of 11.50, 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 July 31, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 25.27 vs. an industry ratio of 12.60, implying that they will have a higher earnings growth than their competitors in the same industry. In the past year NAV has beat the expectations every quarter. | 7640b821-86da-4b8e-ba87-cdbb32daf372 |
709885.0 | 2018-08-30 00:00:00 UTC | Donaldson (DCI) Q4 Earnings Preview: How Are Events Shaping Up? | DCI | https://www.nasdaq.com/articles/donaldson-dci-q4-earnings-preview%3A-how-are-events-shaping-up-2018-08-30 | nan | nan | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended July 2018. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on September 6, 2018, 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 $0.58 per share in its upcoming report, which represents a year-over-year change of +13.7%.
Revenues are expected to be $727.89 million, up 10.3% 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.
Price, Consensus and EPS Surprise
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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. 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 $0.52 per share when it actually produced earnings of $0.53, delivering a surprise of +1.92%.
Over the last four quarters, the company has beaten consensus EPS estimates two 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.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended July 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended July 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise 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. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended July 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise 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. | Wall Street expects a year-over-year increase in earnings on higher revenues when Donaldson (DCI) reports results for the quarter ended July 2018. Click to get this free report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price, Consensus and EPS Surprise 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. | b9ed1396-3672-4d37-94e6-ec7dc11a3a9e |
709886.0 | 2018-08-26 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 8/26/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-8262018-2018-08-26 | 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.
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.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
COOPER TIRE & RUBBER CO ( CTB ) is a small-cap growth stock in the Tires 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: Cooper Tire & Rubber Company is a manufacturer and marketer of replacement tires. The Company specializes in the design, manufacture, marketing and sales of passenger car, light truck, medium truck, motorcycle, and racing tires. The Company operates through four segments: North America, Latin America, Europe, and Asia. The North America segment comprises its operations in the United States and Canada. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Latin America segment comprises its operations in Mexico, Central America, and South America. The European segment has operations in the United Kingdom and the Republic of Serbia. Its the United Kingdom entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material. As of December 31, 2016, the Company operated nine manufacturing facilities and 20 distribution centers in 10 countries.
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.
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.
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 539.24% vs. 187.35% 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.
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 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. 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 a full detailed analysis using NASDAQ's Guru Analysis tool, click here COOPER TIRE & RUBBER CO ( CTB ) is a small-cap growth stock in the Tires industry. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. Daimler's segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. | The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. 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 Since its inception, Validea's strategy based on Benjamin Graham has returned 539.24% vs. 187.35% for the S&P 500. | The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Company is engaged in the development, production and distribution of cars, trucks and vans in Germany, and the management of the Daimler Group. 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 539.24% vs. 187.35% for the S&P 500. | a273729e-8f41-46a5-a85b-d6bb57bfc58b |
709887.0 | 2018-07-29 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 7/29/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-7292018-2018-07-29 | 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.
COOPER TIRE & RUBBER CO ( CTB ) is a small-cap value stock in the Tires 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: Cooper Tire & Rubber Company is a manufacturer and marketer of replacement tires. The Company specializes in the design, manufacture, marketing and sales of passenger car, light truck, medium truck, motorcycle, and racing tires. The Company operates through four segments: North America, Latin America, Europe, and Asia. The North America segment comprises its operations in the United States and Canada. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Latin America segment comprises its operations in Mexico, Central America, and South America. The European segment has operations in the United Kingdom and the Republic of Serbia. Its the United Kingdom entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material. As of December 31, 2016, the Company operated nine manufacturing facilities and 20 distribution centers in 10 countries.
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.
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.
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.
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.
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 542.72% vs. 181.76% 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.
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. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. 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. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. 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. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Company's segments include Engine Products, Industrial Products and Corporate. | c05d1d81-56fc-4e4f-b4dc-ff05b26a597e |
709888.0 | 2018-07-16 00:00:00 UTC | Beyond the Classroom: The Rise of University Blockchain Labs | DCI | https://www.nasdaq.com/articles/beyond-the-classroom%3A-the-rise-of-university-blockchain-labs-2018-07-16 | nan | nan | As the cryptocurrency industry matures and public interest heightens, blockchain research and educational efforts have made their way into the halls of some of the world's leading universities. Courses on cryptocurrency finance, blockchain development and related law are developing into serious avenues of study. They're academia's response to a formerly stigmatized space's debut into mainstream culture, a formal and accredited extension to the work of innovators and leaders who propelled the space forward when it was still relatively underground.
Complementing classroom offerings, university-led blockchain research and development initiatives are on the rise, as teams of professors, blockchain developers and students work to take the industry from market speculation to mainstream application.
Massachusetts Institute of Technology (MIT) features the oldest and perhaps best-known university-sponsored blockchain development lab in the world. Since 2015, the MIT Media Lab's Digital Currency Initiative has brought together some of the space's leading independent developers with MIT faculty to extend the development of such applications as the Lightning Network.
Halfway into 2018, some of the world's top universities are joining MIT and vetting initiatives of their own. New in structure but by no means new to the field, Stanford's month-old blockchain R&D lab was launched with a bit of a jumpstart. Co-directors Dan Boneh and David Mazières have three years of blockchain-focused research and academic papers to set the lab into motion. Both directors are computer science professors at Stanford and have taught courses on blockchain technology since 2015.
As these labs begin operating in the background of academia, these professors can take the work they've done in the classroom and work toward tangible developments. At the intersection of education and innovation, these R&D efforts show the potential and need for industry growth - and the plethora of talent that can nourish it.
They also show us that market cap and investor returns alone may be poor indicators for whether a fledgling industry is growing. These labs aren't paying the way themselves; they've tapped into the pocketbooks of some of the space's most notable entities, including the Ethereum Foundation and Ripple. Disregarding the market's steady decline from all-time high prices this year, these big players are investing heavily in research and development for the future growth and health of the space.
Together, these funds and the labs they support are creating the infrastructure to push blockchain development through a new era of mainstream exposure to mainstream adoption.
MIT
The Massachusetts Institute of Technology has had its hand in blockchain and cryptocurrency research and development longer than most. Founded in 2015, the MIT Digital Currency Initiative ( DCI ) is an offshoot of the university's Media Lab. Working alongside other universities and research centers, the lab is a collective of tech industry veterans, crypto programmers, faculty, students and research scientists. Its main R&D focuses include platform/pilot testing, research publication and open-source development for blockchain technology.
The initiative has pulled both from within MIT faculty and from without to cultivate an accomplished team. Led by Director Neha Narula, a 2016-2017 member of the World Economic Forum Global Future Council on Blockchain, and MIT Media Lab Director Joi Ito, the team features a former chief economist of the International Monetary Fund in Simon Johnson and Gary Gensler, an Obama-era Commodity and Futures Trade Commission chairman.
As one of the oldest R&D labs in the space, it also employs Bitcoin Core developers Wladimir van der Laan and Cory Fields, as well as Tadge Dryja, co-author of the Lightning Network white paper.
Dryja in particular has used his time at DCI to continue the work he and Joseph Poon started with the Lightning Network. This summer, the lab has been piloting a prototype to test the Lightning Network's smart contract functionality. Contrary to common misconceptions, Bitcoin does house a scripting language, though it's less flexible and more limited than those of platforms like Ethereum.
"It's not as developer friendly because bitcoin didn't go in that direction, but you can use it. You have to be a little creative," said Alin Dragos, Head of Strategic Partnerships at DCI.
Working their way around Bitcoin's scripting limitations, Dryja and Dragos have brought smart contracts to the Lightning Network. Broadcasting data for the smart contracts to the second layer, off-chain network that Lightning provides, these smart contracts can be both private and scalable, their information being stored off-chain. Only the transaction, whenever the service's users decide to close their payment channel, will be sent to Bitcoin's network.
This Lightning Network application is just one of the many contributions the lab has facilitated to enrich Bitcoin's network. It has also overseen or assisted with much of Wladimir van der Lann's work on Bitcoin Core.
In addition to its efforts with such key contributions, the initiative publishes academic papers, thought pieces and informative articles on topics from anonymity algorithms to blockchain use cases for legacy sectors, and it provides free cryptocurrency and blockchain courses on its website.
The team also attracts mainstream media and news coverage to provide input on industry-related topics. In the past, Gary Gensler has discussed token security status with the New York Times , and PBS has invited Neha Narula on to its NewsHour for a feature on Bitcoin.
Stanford
Ironically, with DCI, MIT boasts the oldest university-run blockchain R&D lab in the nation, but the university offers no official undergraduate courses on blockchain technology - only standalone online ones that don't offer any university credit.
Stanford is in the opposite position. The West Coast University has offered cryptocurrency and blockchain classes for as long as DCI has been active, but it wasn't until this year that the institution launched its own research initiative.
Supported with funding by the Ethereum Foundation, Protocol Labs and Polychain Capital, among others, Stanford's Center for Blockchain Research is led by computer science professors Dan Boneh and David Mazières. The center is, in effect, the practical culmination of the academic work both professors have committed to the field since 2015.
"Our goal is to support the ecosystem," professor Dan Boneh said in an interview with Bitcoin Magazine .
"[CBR] is a technically focused research center that is going to be developing technology to support the blockchain ecosystem. We've been doing that now for a while and, basically, this is giving more structure to that," he added, emphasizing the role the center plays in building on the work the Stanford computer science department has already produced in the field.
After establishing three years' worth of pedagogical groundwork, Boneh and Mazières spent the last year adding structure to the CBR. A physical hub for future innovation, the center solidifies the body of work the professors have published to date, and it will house more hands-on research and development going forward.
Fittingly, the vast majority of this research will be technically focused from the center's onset.
"We're focusing on a number of different areas, starting with cryptography, obviously. For me this has been really exciting because every time I talk to a project, I come away with new research problems to think about," Boneh stated in the interview. "We're also working on languages for smart contracts. We're working on verification tools … consensus protocols."
Like DCI, CBR is already taking the theoretical and making it functional. The lab's smart contract brain child is already in testing, Boneh revealed in the interview, and the demo's findings will be published in a forthcoming paper.
This paper will enrich the library of work that Boneh et al. have already produced. Keeping with Bitcoin's ethos for open-source access, CBR and Stanford offer these articles free of charge, and they cover topics that range from consensus protocols to confidential transactions.
While research for these works comes from within Stanford, the inspiration for them - and the problems they look to solve - come from the industry's myriad projects.
"The research work is primarily to the center, but the question is: where are the research questions coming from? The research questions are coming from the projects. So we publish papers to look for solutions."
As these solutions and the papers positing them suggest, the center's technical bent is obvious. Still, Boneh stressed that the center's focus will widen as it builds out its team and resources. Joe Grundfest, a former SEC commissioner and Stanford Law professor, is CBR's original anchor to fields outside of the realm of computer science, but he won't be the only one down the road.
"The center is focused on computer science. The plan is actually to grow and include the broader aspects of blockchain - this is why it was important for me to have someone from the law school involved from day one. But we will have folks in economics, folks from the businesses school," Boneh claimed.
Looking toward what's to come, Boneh indicated that, for the near future, the center is focused on educational outreach. It's holding an open series of summer seminars on topics like scaling and SNARKs, and it'll be hosting the third annual Stanford Blockchain Conference from January 30 to February 1, 2019. The conference is calling for submissions until October 16, 2018.
University College London
University College London's Centre for Blockchain Technology ( CBT ) is holistic in its R&D approach. In many regards, it casts its net wider than MIT or Stanford, both of which, for the time being, focus mainly on technical incubation and research.
CBT was founded in 2015 when "the crypto-space was in its early embryonic stage and not as mature as it is now," when "no one was really aware of the real blockchain potentials," Founder and Executive Director Paolo Tasca told Bitcoin Magazine in an interview. It was created as "an interdisciplinary group able to address at the highest levels the major technical, socio-economic and legal challenges posed by the advent of distributed ledger."
The center's research philosophy is built on three disciplinary tenets, namely science and technology, finance and business, and law and regulation. Spanning so many fields, it is "the largest centre on blockchain technologies in the world which counts more than one hundred research associates involved in several research projects," according to Tasca.
Currently, the center has 60 applicants under consideration to add to its team of scholars and researchers from UCL's mathematics, computer science, economics, science, statistics, law, psychology and energy departments.
Tasca indicated in our interview that "[every] department supporting the CBT is independent in managing its own research agenda." Though it's "very often," he continued, that "blockchain-related issues can be addressed only by adopting an interdisciplinary approach. Thus, the CBT is the UCL body that provides a core team of leading blockchain scholars and facilitates these cross-departmental and often inter-university projects on blockchain-related areas."
Such an extensive, interdisciplinary approach has given birth to a wide range of variegated research. On the CBT's resources page are papers that span topics from network attacks to the failure of interdependent economic ecosystems, some of which appear to have only vague threads of association with blockchain technology.
Over the past two years, UCL CBT has supported projects such as a pilot for verifying academic credentials on the blockchain and a study on the crypto economy's evolution.
Like Stanford, CBT also holds seminars and events to further foster education. In addition, the center offers its expertise by way of consulting services, a private counterpart to the public engagement the summits and seminars facilitate. It's offered its advisory services to startups and private/public entities alike, including the Bank of Canada, Financial Conduct Authority, Banca D'Italia and the Federal Reserve Bank of St. Louis, to name a few.
The project is funded in part "from government public grants and international grants," Tasca revealed, including "a recent funding award … the BARAC (Blockchain for Automatic Regulation and Compliance) project which was the largest 2017 EPSRC UK grant for a blockchain project" and "the PETRAS Internet of Energy Things (P2P-IoET) [grant] for supporting peer-to-peer energy trading and demand-side management through blockchains."
The initiative also relies on funding from the CBT industry alliance and such third party companies as Ripple, Fidelity Investments, R3, State Street and Oracle, among others.
With a stack of resources both monetary and academic, the CBT contracts its expertise out to some of the world's leading governmental entities. Notably, Tasca said that the center has consulted with the UN's World Food Organization on how blockchains could be used to effect transparent quality control over international food supply chains. It has also worked closely with "the EU Parliament, the U.K. government, the U.K. parliament, the Bank of England and the FCA [Financial Conduct Authority]."
In addition to government organizations, the CBT also offers support for blockchain pilots and startups, and Tasca teased that the center will soon reveal "a specific program to promote entrepreneurial ventures to advance technology innovation in the areas of IOT, AI and blockchain."
University of Edinburgh
With funding from Charles Hoskinson and Jeremy Wood's IOHK, the Blockchain Technology Laboratory (BLT) is working with the University of Edinburgh's School of Informatics to advance blockchain research and innovation. BLT's director Aggelos Kiayias and Hoskinson forged the alliance from a shared desire to address the industry's pain points, such as the proof-of-stake consensus model, using what Kiayias calls "a first principles approach."
In an interview, Kiayias continued to say that, while the lab's "focus so far has been on the design of distributed ledgers protocols, their security, scalability, sustainability, performance, interoperability and economics," it is "in the process of expanding with collaborations in the school of business, economics, math, architecture and political science."
Other Centers of Research
The Imperial College of London has its own center dedicated to blockchain and cryptocurrency research, as well. Like its peers, the Centre for Cryptocurrency Research and Engineering publishes academic articles on its findings and hosts educational events. Recently, two of its members, professors William Knottenbelt and Dr. Zeynep Gurguc, published a report entitled "Cryptocurrencies: Overcoming Barriers to Trust and Adoption." It touts cryptocurrency as global finance's next logical iteration, rationalizing the reasons why the financial tool has all the markings of a digital fiat equivalent and what it will take to see comprehensive adoption.
Outside of lab-directed research, other universities and their faculty have published research and reports that have been invaluable for the industry. At the University of Austin Texas, for example, professors of finance John Griffin and Amin Shams published a lengthy report correlating Tether's issuance with bitcoin's meteoric price rise in 2017. The report corroborates a long-held concern within the community, as it claims that Tether was used to artificially support bitcoin's price during its most recent bull run.
For academia's role in blockchain research and development, in the words of Professor Boneh, "There's real science to be done here." And as Tadge Dryja and Wladimir van der Laan's collaboration with MIT suggests, these scientific pursuits are often paired with and strengthened by the contributions of independent developers and those visionaries whose work predate the advent of university research in the industry.
With universities and independent researchers chipping away at the space's challenges and limitations, such contributions are a welcomed reminder that, even in times of market downturns, there's more to the industry than investing. Innovation cares little for speculation, and the work being undertaken at these universities bodes well for the continued growth of the technology.
For part one of our series on blockchain education, read our earlier cover story, From Chatroom to Classroom: The Evolution of Blockchain Education .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Founded in 2015, the MIT Digital Currency Initiative ( DCI ) is an offshoot of the university's Media Lab. Dryja in particular has used his time at DCI to continue the work he and Joseph Poon started with the Lightning Network. You have to be a little creative," said Alin Dragos, Head of Strategic Partnerships at DCI. | Founded in 2015, the MIT Digital Currency Initiative ( DCI ) is an offshoot of the university's Media Lab. Dryja in particular has used his time at DCI to continue the work he and Joseph Poon started with the Lightning Network. You have to be a little creative," said Alin Dragos, Head of Strategic Partnerships at DCI. | Founded in 2015, the MIT Digital Currency Initiative ( DCI ) is an offshoot of the university's Media Lab. Dryja in particular has used his time at DCI to continue the work he and Joseph Poon started with the Lightning Network. You have to be a little creative," said Alin Dragos, Head of Strategic Partnerships at DCI. | Founded in 2015, the MIT Digital Currency Initiative ( DCI ) is an offshoot of the university's Media Lab. Dryja in particular has used his time at DCI to continue the work he and Joseph Poon started with the Lightning Network. You have to be a little creative," said Alin Dragos, Head of Strategic Partnerships at DCI. | 88c5bd53-423c-4aac-8047-58cc20a8052c |
709889.0 | 2018-07-08 00:00:00 UTC | Better Buy: Infinera Corporation vs. Skyworks Solutions | DCI | https://www.nasdaq.com/articles/better-buy-infinera-corporation-vs-skyworks-solutions-2018-07-08 | nan | nan | Infinera (NASDAQ: INFN) and Skyworks Solutions (NASDAQ: SWKS) are plays on the Internet of Things (IoT) market -- which includes a growing number of devices connected to each other and the cloud. The global IoT market could grow from $157 billion in 2016 to $457 billion in 2020, according to research firm IDC.
Infinera provides fiber-optic systems for service providers. It generates most of its revenue from long-haul wave division multiplexing (WDM) optical transmission systems -- which enable telecoms to increase their network capacities over long distances without laying down additional fiber. A smaller percentage of its revenue comes from the metro WDM and data center interconnect (DCI) markets, which involve shorter distances.
Skyworks supplies radio-frequency chips for the mobile, automotive, broadband, wireless-infrastructure, home-automation, industrial, and military industries. Last year, Skyworks generated most of its revenue from three customers -- contract manufacturer Foxconn , Samsung , and Huawei -- which each contributed 10% or more of its total revenues. However, Mizuho Securities analyst Vijay Rakesh estimates that orders from Apple (NASDAQ: AAPL) , via Foxconn, account for 35% to 40% of Skyworks' sales.
Which company is growing faster?
Infinera was once considered a growth play on the worldwide "super cycle" in fiber upgrades, which was buoyed by the soaring use of cloud services, streaming media, and mobile apps. Unfortunately, its growth hit a brick wall in the second half of 2016 as orders in China slowed down and carriers focused on short-range WDM and DCI upgrades instead of long-distance ones.
Infinera didn't start generating positive revenue growth again until the second half of 2017, when those headwinds finally subsided. However, its revenue growth then remained positive and accelerated over the past three quarters. Its sales rose 15.5% annually to $202.7 million last quarter, and it expects 14.8% to 20.5% growth for the current quarter. Analysts expect Infinera's sales to rise 13% for the full year, compared to a 15% decline last year. Its stock trades at just 1.8 times this year's sales.
Skyworks has been diversifying into fresh IoT markets like connected cars, wearables, and smart appliances, but its fate remains tightly tethered to Apple's. Therefore, peaking demand for iPhones and iPads is causing many investors to question Skyworks' long-term growth.
Skyworks' revenue rose 7.2% annually to $913.4 million last quarter, but that marked its slowest growth in five quarters. Skyworks' forecast for flat sales to a 2.9% sales decline for the current quarter indicates the slowdown isn't over, and analysts anticipate just 6% sales growth this year -- compared to 11% growth last year. Skyworks' stock trades at 4.6 times this year's sales.
Which company is more profitable?
Infinera has been unprofitable (on a non-GAAP basis) for six straight quarters, but it expects to return to quarterly profitability in the second half of the year. Analysts expect Infinera to post a net loss of $0.09 per share for the full year -- which would be a huge improvement from its loss of $0.54 last year.
Wall Street expects Infinera to post earnings of $0.21 per share next year. At $10, Infinera trades at 48 times that estimate. That valuation looks high, but its multiple could quickly cool down as its earnings keep rising.
Skyworks is consistently profitable by both non-GAAP and GAAP metrics, but its growth is slowing down. Its non-GAAP EPS rose 13% annually last quarter, but management expects just 1% to 2% growth for the current quarter. Wall Street still expects the company's earnings to rise 10.4% for the full year, but dip to 9.8% growth next year.
Skyworks currently trades at about 14 times this year's EPS estimate and 12 times next year's estimate. Skyworks also pays a forward dividend yield of 1.3%, while Infinera has never paid a dividend.
Which stock is the better buy?
Both Infinera and Skyworks will benefit from the growth of the IoT market and 5G network upgrades. However, Infinera's accelerating sales growth, visible path toward profitability, and fading macro headwinds make it a better pick than Skyworks, which faces slowing growth and tough questions about Apple's future.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A smaller percentage of its revenue comes from the metro WDM and data center interconnect (DCI) markets, which involve shorter distances. Unfortunately, its growth hit a brick wall in the second half of 2016 as orders in China slowed down and carriers focused on short-range WDM and DCI upgrades instead of long-distance ones. It generates most of its revenue from long-haul wave division multiplexing (WDM) optical transmission systems -- which enable telecoms to increase their network capacities over long distances without laying down additional fiber. | A smaller percentage of its revenue comes from the metro WDM and data center interconnect (DCI) markets, which involve shorter distances. Unfortunately, its growth hit a brick wall in the second half of 2016 as orders in China slowed down and carriers focused on short-range WDM and DCI upgrades instead of long-distance ones. Analysts expect Infinera's sales to rise 13% for the full year, compared to a 15% decline last year. | A smaller percentage of its revenue comes from the metro WDM and data center interconnect (DCI) markets, which involve shorter distances. Unfortunately, its growth hit a brick wall in the second half of 2016 as orders in China slowed down and carriers focused on short-range WDM and DCI upgrades instead of long-distance ones. Skyworks' forecast for flat sales to a 2.9% sales decline for the current quarter indicates the slowdown isn't over, and analysts anticipate just 6% sales growth this year -- compared to 11% growth last year. | A smaller percentage of its revenue comes from the metro WDM and data center interconnect (DCI) markets, which involve shorter distances. Unfortunately, its growth hit a brick wall in the second half of 2016 as orders in China slowed down and carriers focused on short-range WDM and DCI upgrades instead of long-distance ones. Infinera has been unprofitable (on a non-GAAP basis) for six straight quarters, but it expects to return to quarterly profitability in the second half of the year. | 043959dc-e7de-4185-8532-939cf6abf28e |
709890.0 | 2018-07-02 00:00:00 UTC | Relative Strength Alert For Donaldson | DCI | https://www.nasdaq.com/articles/relative-strength-alert-donaldson-2018-07-02 | 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 $44.50 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 48.8. 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 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.68% based upon the recent $45.12 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.
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 $44.50 per share. | Indeed, DCI's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.68% based upon the recent $45.12 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 $44.50 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 Monday, shares of DCI entered into oversold territory, changing hands as low as $44.50 per share. Indeed, DCI's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.68% based upon the recent $45.12 share price. | Indeed, DCI's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.68% based upon the recent $45.12 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 $44.50 per share. | 225d3b11-2aee-4563-94c8-e413a9319254 |
709891.0 | 2018-07-02 00:00:00 UTC | Why Is Donaldson (DCI) Down 4.4% Since its Last Earnings Report? | DCI | https://www.nasdaq.com/articles/why-is-donaldson-dci-down-4.4-since-its-last-earnings-report-2018-07-02 | nan | nan | A month has gone by since the last earnings report for Donaldson Company, Inc.DCI . Shares have lost about 4.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is DCI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Donaldson Q2 Earnings Miss Estimates, Revenues Up Y/Y
Donaldson posted adjusted earnings of 43 cents per share in second-quarter fiscal 2018, missing the Zacks Consensus Estimate by a penny.
However, the reported figure fared better than the prior-year quarter tally of 35 cents, reflecting an increase of 22.9%. The bottom line was driven by impressive growth in revenues as well as favorable market conditions.
Inside the Headlines
Donaldson's total sales came in at $664.7 million, reflecting an improvement of 20.7% on a year-over-year basis. The top line also came ahead of the Zacks Consensus Estimate of $629.6 million. In fact, solid performance at the company's Engine Products and Industrial Products segments led to the increase in sales. Notably, the year-over-year improvement in sales includes a benefit of about 4.6% and 1.5% from currency translation and acquisitions, respectively.
The Engine Products segment's sales were up 22.2% year over year to $442.4 million. All the four sub-segments under Engine Products - Off-Road, On Road, Aftermarket as well as Aerospace and Defense - recorded an increase in sales, thus leading to the company's overall strong performance. Sales in Aftermarket, On-road, Off-Road and Aerospace and Defense business increased by 18.3%, 50.6%, 37% and 2%, respectively.
Sales at the Industrial Products segment were up 17.7% year over year to $222.3 million. In the Industrial Filtration Solutions, Gas Turbine Systems and Special Applications business the metric improved 13.4%, 55.7% and 11.3%, respectively.
However, Donaldson's adjusted operating margin contracted 30 basis points (bps) year over year to 12.3%. Meanwhile, the company's earnings before interest, taxes, depreciation and amortization (EBITDA) were $100.5 million compared with $89.5 million recorded a year ago.
Liquidity & Cash Flow
As of Jan 31, 2018, Donaldson had cash and equivalents of $362.2 million compared with $308.4 million as on Jul 31, 2017. The company had long-term debt of $667.7 million as on Jan 31, 2018 compared with $537.3 million as on Jul 31, 2017.
Share Repurchase Program
In the fiscal second quarter, the company returned $23.4 million to shareholders through share dividends. Additionally, Donaldson repurchased shares worth $20.2 million, which represents 0.3% of its outstanding shares.
2018 Guidance
Concurrent with the earnings release, the company issued guidance for fiscal 2018. Donaldson currently expects fiscal 2018 GAAP earnings in the range of $1.93-$2.01 per share compared with its earlier projection of $1.90 to $2.04. Based on the current market scenario, the company expects a 13-15% increase in full-year sales year over year.
Segment-wise, Donaldson projects Engine Products sales to increase in the range of 17-19% compared with its earlier projection of 13-17%. Markedly, sales increase in Aftermarket, Off-Road, On-Road as well as Aerospace and Defense is expected to act as a tailwind for growth in the Engine Products segment.
Donaldson anticipates Industrial Products sales to increase in the range of 5-7% compared with its earlier guidance of 4-8%, mirroring impressive performance from Industrial Filtration Solutions and Special Applications.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower.
Donaldson Company, Inc. Price and Consensus
Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote
VGM Scores
At this time, DCI has a nice Growth Score of B, however its Momentum is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
DCI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A month has gone by since the last earnings report for Donaldson Company, Inc.DCI . Will the recent negative trend continue leading up to its next earnings release, or is DCI due for a breakout? Donaldson Company, Inc. Price and Consensus Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote VGM Scores At this time, DCI has a nice Growth Score of B, however its Momentum is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. | Donaldson Company, Inc. Price and Consensus Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote VGM Scores At this time, DCI has a nice Growth Score of B, however its Momentum is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. A month has gone by since the last earnings report for Donaldson Company, Inc.DCI . Will the recent negative trend continue leading up to its next earnings release, or is DCI due for a breakout? | Donaldson Company, Inc. Price and Consensus Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote VGM Scores At this time, DCI has a nice Growth Score of B, however its Momentum is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. A month has gone by since the last earnings report for Donaldson Company, Inc.DCI . Will the recent negative trend continue leading up to its next earnings release, or is DCI due for a breakout? | A month has gone by since the last earnings report for Donaldson Company, Inc.DCI . Will the recent negative trend continue leading up to its next earnings release, or is DCI due for a breakout? Donaldson Company, Inc. Price and Consensus Donaldson Company, Inc. Price and Consensus | Donaldson Company, Inc. Quote VGM Scores At this time, DCI has a nice Growth Score of B, however its Momentum is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. | 7b9afa91-dbc0-40b2-99a0-d8ae554a55ae |
709892.0 | 2018-06-29 00:00:00 UTC | Are the Bears or Bulls Right About China Mobile? | DCI | https://www.nasdaq.com/articles/are-bears-or-bulls-right-about-china-mobile-2018-06-29 | nan | nan | China Mobile (NYSE: CHL) is generally considered a conservative play on the Chinese market. However, shares of the country's top wireless carrier tumbled more than 30% over the past three years due to ongoing concerns about the saturation of the smartphone market, rising expenses, and trade tensions with the US.
But are investors overreacting to those headwinds? Let's discuss the bear and bull cases to see if China Mobile is worth buying near its multi-year lows.
What the bears think about China Mobile
China Mobile finished May with 901.9 million wireless subscribers, which represented 4.5% annual growth and 0.3% monthly growth. 671.8 million of those subscribers were on 4G plans, which represented 15.2% annual growth but just 0.4% monthly growth.
China Mobile's 4G customer base shrank for the first time in April with a 0.4% month-over-month drop. That decline was caused by the saturation of China's 4G market, as well as competition from smaller peers China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA) . The bears argue that this slowdown will persist until the three telcos transition to 5G networks.
Unfortunately, that transition also requires costly network upgrades, which could become pricier due to escalating trade tensions with the US. Many of China's 5G network upgrades still require American components; new tariffs would make much pricier, and new regulations could block sales of crucial parts.
To spur customer growth, all three state-backed carriers eliminated their domestic roaming charges last October, and plan to cut their mobile data fees by up to 30% this year. They also introduced new plans for expanding free internet access in public places and reducing prices for broadband wireline services. Those moves, along with its ongoing network upgrades, could reduce China Mobile's near-term profit margins.
What the bulls think about China Mobile
China Mobile's wireless growth is slowing down, but its newer wireline business, which was launched in early 2016, is growing at a faster clip. It finished May with 130.4 million wireline subscribers, which represented 44.2% annual growth and 2.6% monthly growth.
The growth of China Mobile's wireline business gives it more bundling opportunities, which could boost its revenues per customer while locking users into its ecosystem. It also connected 229 million Internet of Things (IoT) devices -- likeconnected cars , wearables, drones, and other gadgets -- to its network last year. The growth of these adjacent businesses could offset the sluggish growth of its wireless users.
As for rising costs, China Mobile, China Unicom, and China Telecom all planned for the spike in 5G expenses by selling their towers to China Tower in late 2015. The telcos then took stakes in China Tower and leased back their towers to cut costs. China Mobile expects to lease fewer new towers this year, which will cause its leasing costs to rise just 8% -- compared to a 31% jump in 2017.
China Mobile also isn't as dependent on American companies as the bears believe. One of its main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment giant Nokia (NYSE: NOK) , which is immune to trade tensions between the US and China. In April, Nokia announced that China Mobile ranked it first in a central bid to supply its regional optical transport network for 13 urban and two provincial backbone networks.
China Mobile faces a wireless slowdown and margin pressures, but analysts still expect its revenue and earnings to rise 3% and 1%, respectively, this year. China Mobile also recently announced that it planned to repurchase up to 10% of its stock, which would further reduce its already low P/E ratio of 10. China Unicom and China Telecom, for comparison, have respective P/E ratios of 61 and 13.
Lastly, China Mobile still pays a semi-annual dividend, which is adjusted every year based on a payout ratio of about 50%. That yield fluctuates from year to year, but it's consistently remained higher than China Unicom and China Telecom's dividends.
CHL Dividend Yield (TTM) data by YCharts
The bulls are poised for a comeback
I personally own shares of China Mobile, and I've been disappointed in its recent performance. But I also think that it's oversold, and investors are overlooking some of its strengths. The stock will likely remain out of favor until trade tensions subside and customers start upgrading to 5G plans, but I think its valuation, buyback plans, and dividend should set a firm mid-$40s floor under the stock.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One of its main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment giant Nokia (NYSE: NOK) , which is immune to trade tensions between the US and China. However, shares of the country's top wireless carrier tumbled more than 30% over the past three years due to ongoing concerns about the saturation of the smartphone market, rising expenses, and trade tensions with the US. CHL Dividend Yield (TTM) data by YCharts The bulls are poised for a comeback I personally own shares of China Mobile, and I've been disappointed in its recent performance. | One of its main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment giant Nokia (NYSE: NOK) , which is immune to trade tensions between the US and China. What the bears think about China Mobile China Mobile finished May with 901.9 million wireless subscribers, which represented 4.5% annual growth and 0.3% monthly growth. It finished May with 130.4 million wireline subscribers, which represented 44.2% annual growth and 2.6% monthly growth. | One of its main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment giant Nokia (NYSE: NOK) , which is immune to trade tensions between the US and China. What the bears think about China Mobile China Mobile finished May with 901.9 million wireless subscribers, which represented 4.5% annual growth and 0.3% monthly growth. What the bulls think about China Mobile China Mobile's wireless growth is slowing down, but its newer wireline business, which was launched in early 2016, is growing at a faster clip. | One of its main 4G, 5G, and data center interconnect (DCI) partners is Finnish telecom equipment giant Nokia (NYSE: NOK) , which is immune to trade tensions between the US and China. That decline was caused by the saturation of China's 4G market, as well as competition from smaller peers China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA) . China Mobile also recently announced that it planned to repurchase up to 10% of its stock, which would further reduce its already low P/E ratio of 10. | 1a3e502c-8241-4b9e-95e7-3eee787472c1 |
709893.0 | 2018-06-18 00:00:00 UTC | February 2019 Options Now Available For Donaldson (DCI) | DCI | https://www.nasdaq.com/articles/february-2019-options-now-available-donaldson-dci-2018-06-18 | nan | nan | Investors in Donaldson Co. Inc. (Symbol: DCI) saw new options begin trading today, for the February 2019 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration the newly trading contracts represent a possible 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 2019 contracts and identified one put and one call contract of particular interest.
The put contract at the $45.00 strike price has a current bid of 20 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $45.00, but will also collect the premium, putting the cost basis of the shares at $44.80 (before broker commissions). To an investor already interested in purchasing shares of DCI, that could represent an attractive alternative to paying $47.45/share today.
Because the $45.00 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 68%. 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 0.44% return on the cash commitment, or 0.67% 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 $45.00 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 15 cents. If an investor was to purchase shares of DCI stock at the current price level of $47.45/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 5.69% if the stock gets called away at the February 2019 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 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 59%. 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 0.32% boost of extra return to the investor, or 0.48% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 43%, while the implied volatility in the call contract example is 35%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $47.45) to be 18%. 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.
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 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 begin trading today, for the February 2019 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 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 begin trading today, for the February 2019 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DCI options chain for the new February 2019 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 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 begin trading today, for the February 2019 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DCI options chain for the new February 2019 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 2019 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 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 begin trading today, for the February 2019 expiration. | b747192b-e88f-4e48-b247-3196c347471c |
709894.0 | 2018-06-07 00:00:00 UTC | Donaldson Company, Inc. (DCI) Ex-Dividend Date Scheduled for June 08, 2018 | DCI | https://www.nasdaq.com/articles/donaldson-company-inc-dci-ex-dividend-date-scheduled-june-08-2018-2018-06-07 | nan | nan | Donaldson Company, Inc. ( DCI ) will begin trading ex-dividend on June 08, 2018. A cash dividend payment of $0.19 per share is scheduled to be paid on June 28, 2018. Shareholders who purchased DCI prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 5.56% increase over prior dividend payment. At the current stock price of $47.7, the dividend yield is 1.59%.
The previous trading day's last sale of DCI was $47.7, representing a -8.62% decrease from the 52 week high of $52.20 and a 12% increase over the 52 week low of $42.59.
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 $1.1. Zacks Investment Research reports DCI's forecasted earnings growth in 2018 as 18.01%, compared to an industry average of .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.
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 2018 as 18.01%, compared to an industry average of .7%. For more information on the declaration, record and payment dates, visit the DCI Dividend History page. | 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 begin trading ex-dividend on June 08, 2018. 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 $47.7, representing a -8.62% decrease from the 52 week high of $52.20 and a 12% increase over the 52 week low of $42.59. 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 $1.1. Donaldson Company, Inc. ( DCI ) will begin trading ex-dividend on June 08, 2018. | fb01f4c5-6801-472b-8e4e-90d3b38aeb05 |
709895.0 | 2018-06-06 00:00:00 UTC | Ex-Dividend Reminder: Donaldson, Insperity and ITT | DCI | https://www.nasdaq.com/articles/ex-dividend-reminder-donaldson-insperity-and-itt-2018-06-06 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Donaldson Co. Inc. (Symbol: DCI), Insperity Inc (Symbol: NSP), and ITT Inc (Symbol: ITT) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. will pay its quarterly dividend of $0.19 on 6/28/18, Insperity Inc will pay its quarterly dividend of $0.20 on 6/25/18, and ITT Inc will pay its quarterly dividend of $0.134 on 7/2/18. As a percentage of DCI's recent stock price of $47.09, this dividend works out to approximately 0.40%, so look for shares of Donaldson Co. Inc. to trade 0.40% lower - all else being equal - when DCI shares open for trading on 6/8/18. Similarly, investors should look for NSP to open 0.21% lower in price and for ITT to open 0.25% lower, all else being equal.
Below are dividend history charts for DCI, NSP, and ITT, showing historical dividends prior to the most recent ones declared.
Donaldson Co. Inc. (Symbol: DCI) :
Insperity Inc (Symbol: NSP) :
ITT Inc (Symbol: ITT) :
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 1.61% for Donaldson Co. Inc., 0.82% for Insperity Inc, and 0.99% for ITT Inc.
In Wednesday trading, Donaldson Co. Inc. shares are currently trading flat, Insperity Inc shares are up about 0.7%, and ITT Inc shares are up about 0.2% 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.
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 $47.09, this dividend works out to approximately 0.40%, so look for shares of Donaldson Co. Inc. to trade 0.40% lower - all else being equal - when DCI shares open for trading on 6/8/18. Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Donaldson Co. Inc. (Symbol: DCI), Insperity Inc (Symbol: NSP), and ITT Inc (Symbol: ITT) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DCI, NSP, and ITT, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Donaldson Co. Inc. (Symbol: DCI), Insperity Inc (Symbol: NSP), and ITT Inc (Symbol: ITT) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. (Symbol: DCI) : Insperity Inc (Symbol: NSP) : ITT Inc (Symbol: ITT) : 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 $47.09, this dividend works out to approximately 0.40%, so look for shares of Donaldson Co. Inc. to trade 0.40% lower - all else being equal - when DCI shares open for trading on 6/8/18. | Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Donaldson Co. Inc. (Symbol: DCI), Insperity Inc (Symbol: NSP), and ITT Inc (Symbol: ITT) will all trade ex-dividend for their respective upcoming dividends. Donaldson Co. Inc. (Symbol: DCI) : Insperity Inc (Symbol: NSP) : ITT Inc (Symbol: ITT) : 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 $47.09, this dividend works out to approximately 0.40%, so look for shares of Donaldson Co. Inc. to trade 0.40% lower - all else being equal - when DCI shares open for trading on 6/8/18. | Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Donaldson Co. Inc. (Symbol: DCI), Insperity Inc (Symbol: NSP), and ITT Inc (Symbol: ITT) will all trade ex-dividend for their respective upcoming dividends. As a percentage of DCI's recent stock price of $47.09, this dividend works out to approximately 0.40%, so look for shares of Donaldson Co. Inc. to trade 0.40% lower - all else being equal - when DCI shares open for trading on 6/8/18. Below are dividend history charts for DCI, NSP, and ITT, showing historical dividends prior to the most recent ones declared. | dfd87601-5215-4d31-9e59-cdcf148ff661 |
709896.0 | 2018-06-05 00:00:00 UTC | Donaldson Breaks Above 200-Day Moving Average - Bullish for DCI | DCI | https://www.nasdaq.com/articles/donaldson-breaks-above-200-day-moving-average-bullish-dci-2018-06-05 | nan | nan | In trading on Tuesday, shares of Donaldson Co. Inc. (Symbol: DCI) crossed above their 200 day moving average of $47.02, changing hands as high as $47.17 per share. Donaldson Co. Inc. shares are currently trading up about 0.9% 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 $42.59 per share, with $52.20 as the 52 week high point - that compares with a last trade of $47.09.
Click here to find out which 9 other dividend stocks recently crossed above 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.
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 above their 200 day moving average of $47.02, changing hands as high as $47.17 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 $42.59 per share, with $52.20 as the 52 week high point - that compares with a last trade of $47.09. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $47.02, changing hands as high as $47.17 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 $42.59 per share, with $52.20 as the 52 week high point - that compares with a last trade of $47.09. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $47.02, changing hands as high as $47.17 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 $42.59 per share, with $52.20 as the 52 week high point - that compares with a last trade of $47.09. Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $47.02, changing hands as high as $47.17 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 $42.59 per share, with $52.20 as the 52 week high point - that compares with a last trade of $47.09. Click here to find out which 9 other dividend stocks recently crossed above 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. | 548c6dcf-c330-4293-90a9-40e9665d59fb |
709897.0 | 2018-06-01 00:00:00 UTC | Donaldson (DCI) Q3 Earnings Trump Estimates, View Upbeat | DCI | https://www.nasdaq.com/articles/donaldson-dci-q3-earnings-trump-estimates-view-upbeat-2018-06-01 | nan | nan | Donaldson Company, Inc.DCI posted adjusted earnings of 53 cents per share in third-quarter fiscal 2018, beating the Zacks Consensus Estimate by a penny.
The reported figure fared better than the prior-year quarter's tally of 45 cents, reflecting an increase of 17.8%. The bottom line was driven by impressive growth in revenues and favourable market conditions.
Inside the Headlines
Donaldson's total sales amounted to $700 million, reflecting an improvement of 15.1% on a year-over-year basis. The top line also came ahead of the Zacks Consensus Estimate of $684 million. Solid performance in the company's Engine Products and Industrial Products segments drove sales.
The Engine Products segment's sales were up 16% year over year to $472.3 million. Three of the four sub-segments under Engine Products - Off-Road, On Road and Aftermarket - recorded stellar increase in sales, leading to the company's overall strong performance. Sales in Aftermarket, On-road and Off-Road business improved 12.6%, 46.3% and 30.4%, respectively. Sales for the Aerospace and Defense business declined 10.9%, partly due to the timing within the Defense business.
Sales in the Industrial Product segment were up 12.4% year over year to $227.7 million. Within the segment, the Industrial Filtration Solutions, Gas Turbine Systems and Special Applications businesses improved 17.7%, 2.9% and 3.3%, respectively.
Donaldson Company, Inc. Price, Consensus and EPS Surprise
Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote
However, Donaldson's adjusted operating margin contracted 10 basis points (bps) year over year to 14.4%, reflecting negative impact from higher raw materials and supply chain costs, along with an adverse product mix. Meanwhile, the company's earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $123.9 million compared with $107.6 million in the prior-year quarter.
Liquidity & Cash Flow
As of Apr 30, 2018, Donaldson had cash and equivalents of $317.3 million compared with $295.9 million a year ago. The company had long-term debt of $687.5 million as on Apr 30, 2018 compared with $537.3 million as on Jul 31, 2017.
Share Repurchase Program
In the fiscal third quarter, the company returned $23.4 million to shareholders through dividends. Additionally, Donaldson repurchased shares worth $44.9 million, which represented 0.8% of its outstanding shares.
2018 Guidance
Concurrent with the earnings release, the company revised its guidance for fiscal 2018. Donaldson currently expects fiscal 2018 adjusted earnings in the range of $1.97-$2.01 per share compared with its earlier projection of $1.93-$2.01. Based on the current market scenario, the company now expects a 15% increase in fiscal sales on a year-over-year basis compared with the prior forecast of 13-15%.
Segment wise, Donaldson projects Engine Products sales to increase in the range of 18-19% compared with its earlier projection of 17-19%. Markedly, sales increase in Aftermarket, Off-Road and On-Road is expected to act as a tailwind for growth in the Engine Products segment, partially offset by declining sales in Aerospace and Defense.
Donaldson expects Industrial Products sales to increase in the range of 8-9% compared with its earlier guidance of 5-7%, mirroring impressive performance from Industrial Filtration Solutions and Special Applications.
Conclusion
Donaldson's Engine Products segment has been exhibiting great momentum backed by benefit from stabilization in market conditions. Overall favorable trends including effects of restocking, commodity prices, decent rig counts and stable industrial production are expected to prove conducive to the company's results in the upcoming quarters. Also, the company's strategy of winning first-fit programs, aftermarket growth, constant geographic expansion and fostering innovative technology are likely to act as growth catalysts, going ahead.
However, this Zacks Rank #3 (Hold) company is vulnerable to uncertainty related to policy changes, global economic conditions and adverse currency fluctuations as more than half of its revenues comes from outside the United States.
Stocks to Consider
A few better-ranked stocks in the same space are Applied Industrial Technologies, Inc AIT , MSA Safety Incorporated MSA and Avery Dennison Corporation AVY . While Applied Industrial Technologies and MSA Safety sport a Zacks Rank #1 (Strong Buy), Brady Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Applied Industrial Technologies has an impressive earnings surprise history, surpassing estimates in each of the trailing four quarters, with an average beat of 11.6%.
MSA Safety has a good earnings surprise history, exceeding estimates in three of the trailing four quarters, with an average beat of 16.4%.
Avery Dennison posted an earnings beat in each of the trailing four quarters, with an average positive surprise of 7%.
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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 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 posted adjusted earnings of 53 cents per share in third-quarter fiscal 2018, beating the Zacks Consensus Estimate by a penny. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MSA Safety Incorporporated (MSA): Free Stock Analysis Report To read this article on Zacks.com click here. Based on the current market scenario, the company now expects a 15% increase in fiscal sales on a year-over-year basis compared with the prior forecast of 13-15%. | Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MSA Safety Incorporporated (MSA): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI posted adjusted earnings of 53 cents per share in third-quarter fiscal 2018, beating the Zacks Consensus Estimate by a penny. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote However, Donaldson's adjusted operating margin contracted 10 basis points (bps) year over year to 14.4%, reflecting negative impact from higher raw materials and supply chain costs, along with an adverse product mix. | Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MSA Safety Incorporporated (MSA): Free Stock Analysis Report To read this article on Zacks.com click here. Donaldson Company, Inc.DCI posted adjusted earnings of 53 cents per share in third-quarter fiscal 2018, beating the Zacks Consensus Estimate by a penny. Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote However, Donaldson's adjusted operating margin contracted 10 basis points (bps) year over year to 14.4%, reflecting negative impact from higher raw materials and supply chain costs, along with an adverse product mix. | Donaldson Company, Inc.DCI posted adjusted earnings of 53 cents per share in third-quarter fiscal 2018, beating the Zacks Consensus Estimate by a penny. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report MSA Safety Incorporporated (MSA): Free Stock Analysis Report To read this article on Zacks.com click here. The Engine Products segment's sales were up 16% year over year to $472.3 million. | 45982e15-c836-47c3-9be0-d01ab3df38ea |
709898.0 | 2018-05-30 00:00:00 UTC | Pre-Market Earnings Report for May 31, 2018 : DG, DLTR, BURL, DCI, CMD, AEO, CIEN, GLNG, TECD, SFL, GMLP, FRO | DCI | https://www.nasdaq.com/articles/pre-market-earnings-report-may-31-2018-dg-dltr-burl-dci-cmd-aeo-cien-glng-tecd-sfl-gmlp | nan | nan | The following companies are expected to report earnings prior to market open on 05/31/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Dollar General Corporation ( DG ) is reporting for the quarter ending April 30, 2018. The discount retail company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.40. This value represents a 35.92% increase compared to the same quarter last year. In the past year DG has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DG is 15.99 vs. an industry ratio of 17.80.
Dollar Tree, Inc. ( DLTR ) is reporting for the quarter ending April 30, 2018. The discount retail company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.23. This value represents a 25.51% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DLTR is 16.77 vs. an industry ratio of 17.80.
Burlington Stores, Inc. ( BURL ) is reporting for the quarter ending April 30, 2018. The discount retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.09. This value represents a 49.32% increase compared to the same quarter last year. In the past year BURL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 3.83%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for BURL is 23.10 vs. an industry ratio of 17.80, 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 April 30, 2018. The pollution control company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.52. This value represents a 15.56% increase compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 23.68 vs. an industry ratio of 26.80.
Cantel Medical Corp. ( CMD ) is reporting for the quarter ending April 30, 2018. The medical instruments company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.60. This value represents a 17.65% increase compared to the same quarter last year. In the past year CMD has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CMD is 51.03 vs. an industry ratio of 25.70, implying that they will have a higher earnings growth than their competitors in the same industry.
American Eagle Outfitters, Inc. ( AEO ) is reporting for the quarter ending April 30, 2018. The retail (shoe) company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.22. This value represents a 37.50% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for AEO is 15.50 vs. an industry ratio of 22.00.
Ciena Corporation ( CIEN ) is reporting for the quarter ending April 30, 2018. The fiber optics company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.23. This value represents a 39.47% decrease compared to the same quarter last year. CIEN missed the consensus earnings per share in the 4th calendar quarter of 2017 by -9.09%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CIEN is 22.70 vs. an industry ratio of 26.20.
Golar LNG Limited ( GLNG ) is reporting for the quarter ending March 31, 2018. The shipping company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.22. This value represents a 46.34% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2018 Price to Earnings ratio for GLNG is 557.50 vs. an industry ratio of 30.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Tech Data Corporation ( TECD ) is reporting for the quarter ending April 30, 2018. The retail company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.48. This value represents a 20.86% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for TECD is 7.62 vs. an industry ratio of 9.90.
Ship Finance International Limited ( SFL ) is reporting for the quarter ending March 31, 2018. The shipping company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.19. This value represents a 45.71% decrease compared to the same quarter last year. SFL missed the consensus earnings per share in the 4th calendar quarter of 2017 by -4%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for SFL is 15.90 vs. an industry ratio of 30.70.
Golar LNG Partners LP ( GMLP ) is reporting for the quarter ending March 31, 2018. The oil refining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.09. This value represents a 74.29% decrease compared to the same quarter last year. GMLP missed the consensus earnings per share in the 3rd calendar quarter of 2017 by -7.5%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for GMLP is 17.41 vs. an industry ratio of -27.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Frontline Ltd. ( FRO ) is reporting for the quarter ending March 31, 2018. The shipping company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.17. This value represents a 206.25% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for FRO is -9.45 vs. an industry ratio of 30.70.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Company, Inc. ( DCI ) is reporting for the quarter ending April 30, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 23.68 vs. an industry ratio of 26.80. The discount retail company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.40. | Donaldson Company, Inc. ( DCI ) is reporting for the quarter ending April 30, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 23.68 vs. an industry ratio of 26.80. Zacks Investment Research reports that the 2019 Price to Earnings ratio for BURL is 23.10 vs. an industry ratio of 17.80, 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 April 30, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 23.68 vs. an industry ratio of 26.80. Zacks Investment Research reports that the 2019 Price to Earnings ratio for BURL is 23.10 vs. an industry ratio of 17.80, 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 April 30, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DCI is 23.68 vs. an industry ratio of 26.80. In the past year BURL has beat the expectations every quarter. | dd393d91-19b5-488f-8183-0546500674a3 |
709899.0 | 2018-05-27 00:00:00 UTC | Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 5/27/2018 | DCI | https://www.nasdaq.com/articles/valideas-top-five-consumer-cyclical-stocks-based-benjamin-graham-5272018-2018-05-27 | 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.
COOPER TIRE & RUBBER CO ( CTB ) is a small-cap value stock in the Tires 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: Cooper Tire & Rubber Company is a manufacturer and marketer of replacement tires. The Company specializes in the design, manufacture, marketing and sales of passenger car, light truck, medium truck, motorcycle, and racing tires. The Company operates through four segments: North America, Latin America, Europe, and Asia. The North America segment comprises its operations in the United States and Canada. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Latin America segment comprises its operations in Mexico, Central America, and South America. The European segment has operations in the United Kingdom and the Republic of Serbia. Its the United Kingdom entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material. As of December 31, 2016, the Company operated nine manufacturing facilities and 20 distribution centers in 10 countries.
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.
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. The Company 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. Through its subsidiary, IOTA Engineering, L.L.C., the Company provides emergency lighting products and power equipment.
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.
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.
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.
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.
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 555.68% vs. 172.02% 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.
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. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. 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. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. 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. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, for sale in the United States replacement markets. The Company's segments include Engine Products, Industrial Products and Corporate. | 25cc5fd7-2800-4c86-ad5b-e3cbc52ba233 |
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