Donaldson Company (DCI) delivered solid fiscal fourth-quarter and full-year 2021 results. Full-year 2021 earnings and revenue landed at record highs as the company shrugged off the effects of supply chain complexities. DCI shares fell 4.51% to close at $64.22 on September 2.
Donaldson manufactures and sells filtration systems and replacement parts.
Fiscal Q4 2021 sales were up 25.2% to $773.1 million from $617.4 million delivered in the same quarter last year and above consensus estimates of $770.69 million. For the full year, net sales increased 10.5% year-over-year to record highs of $2.85 billion.
Meanwhile, Fiscal Q4 EPS landed at $0.66, up 32% year-over-year and in line with consensus estimates. For the full year, earnings increased 12% year-over-year to a record high of $2.24 a share. (See Donaldson stock charts on TipRanks)
According to CEO Tod Carpenter, the record sales and earnings for Fiscal 2021 underscore Donaldson’s ability to shrug off supply chain and COVID-19 headwinds. Consequently, the company has issued a Fiscal 2022 forecast that signals another year of record sales and profit.
Carpenter stated, “We are leveraging our global production footprint and strong relationships to mitigate the impact from supplier availability issues, and we raised prices to mitigate the historically high headwind on gross margin from raw materials inflation.”
Carpenter has also confirmed plans to invest in long-term opportunities by expanding technologies and solutions while also extending market access.
For Fiscal 2022, Donaldson is projecting adjusted EPS of between $2.24 and $2.32. Net sales are expected to increase by between 5% and 10% compared to Fiscal 2021 levels.
During the fourth quarter, Donaldson returned $27.6 million to shareholders in dividends and carried out buybacks of outstanding shares worth $63.5 million. For the full year, the company repurchased $142.2 million worth of shares.
Yesterday, Oppenheimer analyst Bryan Blair reiterated a Hold rating on the stock.
Consensus among analysts is a Moderate Buy based on 1 Buys and 1 Hold. The average Donaldson price target of $79 implies 23.01% upside potential to current levels.
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