Donaldson Co Inc

DCI: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	S^	LOCK\|Bcl$	LOCK\|JWh@#@

Donaldson Earnings: Shares Pull Back Despite Solid Results and Unchanged Full-Year Guidance

Krzysztof Smalec , Alex Medow

Dec 3, 2024

Narrow-moat-rated Donaldson’s fiscal first-quarter adjusted EPS of $0.83 came in a penny above the FactSet consensus estimate. Despite the earnings beat and unchanged guidance for full-year fiscal 2025, the stock price declined by around 6%, which we think reflects overvaluation heading into the earnings announcement, as the stock was trading at a nearly 15% premium to our previous $68 per share fair value estimate. We’ve increased our fair value estimate by $2 to $70, mostly due to time value of money, and view the stock as fairly valued after the pullback.

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Donaldson Co Inc

Donaldson Earnings: Shares Pull Back Despite Solid Results and Unchanged Full-Year Guidance

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