Donaldson (NYSE: DCI) reported Q1 EPS of $0.48, $0.04 better than the analyst estimate of $0.44. Revenue for the quarter came in at $636.6 million versus the consensus estimate of $614.99 million.

• Total first quarter 2021 sales of replacement parts significantly outperformed new equipment
• Operating margin grew 0.5 percentage points from prior year, driven by gross margin
• Sales trends improving, with year-over-year growth anticipated in the second half of fiscal 2021
• Fiscal 2021 operating margin expected to be up from the prior year, due to higher gross margin

“We are pleased with our first quarter results, which reflect the durability of our business model combined with our ability to gain market share, increase gross margin and manage expenses during an uneven macro-economic environment,” said Tod Carpenter, chairman, president and chief executive officer. “As expected, our sizable base of replacement parts sales mitigated the impact from the pandemic-related cautiousness pressuring our first-fit and new equipment businesses, and newly established customer relationships in China contributed to strong growth in that country.

“For the balance of fiscal 2021, we anticipate overall sales trends will improve, including year-over-year growth in the second half of the year. Our Advance and Accelerate portfolio2 continues to outperform the company average, and we plan to drive further investments into those businesses. While we expect the economic environment will remain uncertain, we also feel confident in our plans to grow our profit margin. We expect higher gross margin from further progress on our optimization initiatives, which leverage our recently completed capacity expansion projects. At the same time, we will maintain disciplined control of our discretionary expenses while pursuing continuous improvement opportunities, which we have done throughout our 105-year history. I believe we have a strong foundation for executing our strategic priorities, and I want to thank our valued customers and suppliers for their continued engagement, as well as our global team for their commitment to advancing filtration for a cleaner world.”

For earnings history and earnings-related data on Donaldson (DCI) click here.