Sep. 2, 2009 (Baystreet.ca) --
Filtration systems maker Donaldson Company, Inc. (DCI) said late Tuesday that its fiscal fourth quarter profit plunged 51.5% from last year, hurt by sharply lower sales.
The Minneapolis-based company reported fiscal fourth quarter net income of $23.6 million, or 30 cents per share, compare with $48.6 million, or 60 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 35 cents per share.
Revenue plummeted over 30% from last year, to $421.3 million.
On average, Wall Street analysts expected a lower adjusted profit of 30 cents a share, on smaller revenue of $407.5 million.
Looking ahead, Donaldson forecast fiscal full-year 2010 adjusted earnings of $1.44 to $1.64. per share, on revenue of $1.65 billion to $1.75 billion. Analysts currently expect a higher profit of $1.65 per share, on larger revenue of $1.8 billion.
Donaldson shares fell $1.58, or -4.3%, in morning trading Wednesday.
The Bottom Line
We removed shares of DCI back last June 30, when the shares were trading at $44.64. The stock has near-term technical support in the $30-$33 price area. If the shares can firm up, we see overhead resistance around the $40 price level. We would remain on the sidelines for now.
Donaldson Company, Inc. (DCI) is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.
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