Donaldson (DCI) Stock Surges on Q3 Earnings Beat

NEW YORK (TheStreet) -- Donaldson (DCI) stock is gaining 7.33% to $35.72 on heavy trading volume on Thursday afternoon after the company's financial results topped estimates for the fiscal 2016 third quarter.

The Minneapolis-based filtration systems and parts maker reported earnings of 43 cents per share on revenue of $571.3 million for the quarter ended April 30. Analysts were expecting earnings of 39 cents per share on revenue of $550.8 million.

Revenue declined 0.7% year-over-year as a 3.1% increase in industrial product sales offset a 2.9% decline in engine product sales. Revenue was up 0.2% on a constant currency basis.

"During the quarter we delivered strong expense performance, and we also identified opportunities to reduce our costs through additional restructuring," CEO Tod Carpenter said in a statement. "The broad-based reductions are expected to generate annual savings of $8 million."

So far today, 2.31 million shares of Donaldson have exchanged hands, compared with its average daily volume of 776,883 shares.

Separately, Donaldson has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins, which offsets generally disappointing stock performance and feeble earnings per share growth.

You can view the full analysis from the report here: DCI

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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