Filtration equipment manufacturer Donaldson (NYSE:DCI) will be reporting earnings tomorrow before the bell. Here’s what to expect.

Donaldson beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $900.1 million, up 6.4% year on year. It was a mixed quarter for the company, with full-year EPS guidance topping analysts’ expectations but a slight miss of analysts’ adjusted operating income estimates.

Is Donaldson a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Donaldson’s revenue to grow 3.6% year on year to $908.3 million, slowing from the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Donaldson has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Donaldson’s peers in the gas and liquid handling segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Standex delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.5%, and Ingersoll Rand reported revenues up 4.2%, in line with consensus estimates. Standex traded down 2.2% following the results while Ingersoll Rand was also down 7.4%.

Read our full analysis of Standex’s results here and Ingersoll Rand’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the gas and liquid handling stocks have shown solid performance, the group has generally underperformed, with share prices down 5.6% on average over the last month. Donaldson is down 1.7% during the same time and is heading into earnings with an average analyst price target of $75.33 (compared to the current share price of $69.51).

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