Donaldson Co. Inc. (DCI) reported Wednesday fiscal first-quarter profit and sales that rose above expectations and raised its full-year outlook, as price increases helped offset rising raw material, freight and labor costs. The filtration company's stock was still inactive in premarket trading. Net income for the quarter to Oct. 31 rose to $77.1 million, or 61 cents a share, from $61.9 million, or 48 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 55 cents. Sales grew 19.5% to $760.9 million, above the FactSet consensus of $745.4 million. Meanwhile, cost of sales increased 21.7% to $503.9 million, as gross margin decreased to 33.8% from 35.0%. "Donaldson is increasing its fiscal 2022 sales and EPS guidance to reflect better than expected sales in the first quarter, combined with the anticipated incremental impact of additional price increases planned for the remainder of the year," the company stated. The company raised its EPS guidance range to between $2.57 and $2.73 from between $2.50 and $2.66 and lifted its sales growth outlook to 8% to 12% from 5% to 10%. The stock has dropped 16.1% over the past three months while the S&P 500 has gained 1.0%.
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