What Happened?
Shares of filtration equipment manufacturer Donaldson (NYSE:DCI) jumped 7.6% in the afternoon session after the company reported third-quarter 2025 results that beat analyst estimates for both revenue and earnings and slightly raised its full-year guidance. Donaldson announced sales of $935.4 million, a 3.9% increase from the previous year. The company posted an adjusted earnings per share of $0.94, which was 13.3% higher year on year and surpassed expectations. Following the performance, Donaldson slightly boosted its full-year outlook, raising the midpoint for its adjusted earnings guidance to $4.03 per share.
The shares closed the day at $94.16, up 7.5% from previous close.
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What Is The Market Telling Us
Donaldson’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 7% on the news that the company reported second-quarter 2025 results that surpassed analyst expectations for both revenue and earnings. The company announced quarterly sales of $980.7 million, a 4.8% increase from the prior year, exceeding forecasts of $953.5 million. Adjusted earnings per share (EPS) grew 9.6% year-over-year to $1.03, narrowly beating the consensus estimate of $1.02. Adding to the positive results, Donaldson issued an optimistic outlook, with its adjusted EPS guidance for the upcoming financial year coming in ahead of analyst expectations. The company also demonstrated strong cash generation, with its free cash flow margin improving to 15% from 11.4% in the same quarter last year.
Donaldson is up 39.3% since the beginning of the year, and at $93.73 per share, has set a new 52-week high. Investors who bought $1,000 worth of Donaldson’s shares 5 years ago would now be looking at an investment worth $1,712.
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