- Donaldson (DCI -0.6%) Q3 net sales grew 15.1% Y/Y to $700M, reflecting sales increase in all segments, benefits from forex and acquisitions.
- Segment sales: Engine products increased 16.4% Y/Y to $472.3M and Industrial products increased 12.4% Y/Y to $227.7M.
- Q3 Margins: Gross declined by 55 bps to 34.23%, operating declined by 14 bps to 14.4% and EBITDA was flat at 17.7%.
- Company repurchased 1M shares for $44.9M at an average price of $44.85 in the quarter.
- FY18 Guidance raised: EPS $1.97-2.01 from $1.93-2.01 earlier vs $1.99 consensus; Revenue growth of ~15% from 13-15% earlier vs $2.71B consensus; Operating margin 13.8-14.2%; interest expense ~$21M; tax rate 26.7-28.7% from 26.5-28.5% earlier.
- Previously: Donaldson beats by $0.01, beats on revenue (May 31)