The chart below shows how DCI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DCI sees a +1.06% change in stock price 10 days leading up to the earnings, and a -0.31% change 10 days following the report. On the earnings day itself, the stock moves by -0.80%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales Volume Growth: Sales increased by 6% year-over-year, reaching $900 million, driven primarily by volume growth.
Quarterly EPS Increase: Adjusted EPS for the quarter was $0.83, up 11% compared to the prior year.
Operating Margin Improvement: Operating margin improved by 20 basis points, reflecting higher sales and effective cost management.
Life Sciences Sales Surge: Life Sciences sales increased by 17% year-over-year, reaching $70 million, supported by strong market conditions.
Shareholder Returns Breakdown: The company returned approximately $107 million to shareholders, including $32 million in dividends and $75 million in share repurchases.
Negative
Restructuring Charges Excluded: Non-GAAP results exclude pre-tax restructuring and other charges of $3.3 million, primarily related to cost reduction initiatives in the Life Sciences segment.
Operating Margin Improvement: Operating margin improved versus 2024 through higher sales, but gross margin of 35.6% was flat to the prior year.
Operating Expenses Rate Increase: Operating expenses as a rate of sales was 20.7% compared with 20.8% a year ago, indicating a slight increase in costs.
Life Sciences Pre-Tax Loss: Life Sciences had a pre-tax loss of approximately $5 million in the quarter, including a headwind from acquisitions, as we continue to ramp those businesses up.
Decline in Pre-tax Margin: Pre-tax margin was a loss of 7.6% versus a loss of 7% a year ago, indicating a decline in profitability.
Donaldson Company, Inc. (DCI) Q1 2025 Earnings Call Transcript
DCI.N
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