Donaldson Co Inc

DCI: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$53.00	Rtfnzs	Nxbfvnz

Donaldson Earnings: Thesis Remains Intact as the Company Enters Fiscal 2024

Krzysztof Smalec ,

Aug 30, 2023

Narrow-moat-rated Donaldson reported full-year fiscal 2023 earnings slightly below our expectations as ongoing softness in the disk drive market affected growth. Nonetheless, the company still generated full-year sales and earnings per share growth of 4% and 9%, respectively, as Donaldson benefited from strength in other end markets as well as favorable pricing and input cost stabilization. As a result, we are raising our fair value estimate to $63 from $59 due to accelerating revenue growth as well as the time value of money.

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