Donaldson Company, Inc. (NYSE: DCI) Quarterly Earnings Preview

• Donaldson Company, Inc. (NYSE:DCI) is set to release its quarterly earnings with an expected EPS of $0.95 and projected revenue of $933.4 million.
• The company's growth is attributed to strong aftermarket demand and its Life Sciences segment, despite challenges in the industrial segments.
• DCI's financial health remains robust with a P/E ratio of 19.90, a price-to-sales ratio of 2.29, and a debt-to-equity ratio of 0.37.

Donaldson Company, Inc. (NYSE:DCI), a global leader in the filtration industry, provides innovative solutions across a wide range of applications. The company operates in various segments, including Industrial Solutions and Life Sciences, and is recognized for its strong aftermarket demand. Despite its growth, DCI's shares are considered fairly valued, leading to a 'hold' recommendation.

On June 3, 2025, DCI is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $0.95 and projected revenue of approximately $933.4 million. This represents a 3.3% increase in EPS from the same period last year, and a 1.4% rise in revenue year-over-year, as highlighted by recent projections.

DCI's growth is driven by strong aftermarket demand and its Life Sciences segment. However, challenges in its core industrial segments persist due to weak end markets. The Industrial Solutions segment is expected to benefit from robust growth in the commercial aerospace market, driven by increased demand for new equipment and strong defense market demand.

Despite a recent pullback in stock price aligning with broader market performance, DCI's financial metrics remain solid. The company has a price-to-earnings (P/E) ratio of 19.90, a price-to-sales ratio of 2.29, and an enterprise value to sales ratio of 2.39. Its debt-to-equity ratio of 0.37 indicates moderate debt levels, while a current ratio of 1.86 suggests good liquidity.

In the previous quarter, DCI reported earnings of 83 cents per share, missing the Zacks Consensus Estimate by 2.4%. However, the company has exceeded estimates in three of the last four quarters, with an average surprise of 3.8%. Analysts have slightly revised the EPS estimate downward by 0.6% over the past 30 days, reflecting reassessed forecasts.