Donaldson (NYSE: DCI) reported Q2 EPS of $0.47, $0.04 worse than the analyst estimate of $0.51. Revenue for the quarter came in at $703.7 million versus the consensus estimate of $718.45 million.

“We delivered second quarter sales and earnings records, with benefits from execution of our strategic priorities and expense leverage more than offsetting the impacts from volatility within the quarter related to market conditions and currency,” said Tod Carpenter, chairman, president and chief executive officer. “As we move through the cycle, we naturally expect the pace of growth in certain businesses will moderate; however, uneven demand during the past quarter, including a sharp and broad-based slowdown in December, resulted in some adjustments to our full-year forecast.

“Despite these adjustments, which were influenced by currency translation and uncertainty from macro-factors like global trade and the political environment, we remain on pace to deliver record sales and EPS in fiscal 2019. In addition to strong top- and bottom-line results, we continue to forecast growth in operating margin as our focused approach to expense management allows us to generate incremental levels of profitability while funding our strategic priorities.

“We see excellent opportunities to expand our core products and technologies into new and emerging markets, with strength in innovative air and fuel products, process filtration and growth in China reflective of our progress. Our incremental investments in technology development and capacity expansion extend these opportunities, further building on our reputation as a leader in the global filtration industry while enhancing our profit margin. I want to thank our employees for their commitment and strong execution of our strategic priorities, and I am confident that we are well-positioned to create long-term value for our customers and shareholders.”

GUIDANCE:

Donaldson sees FY2019 EPS of $2.27-$2.41, versus the consensus of $2.39.

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