Filed under: Earnings reports, Caterpillar (CAT), Technical Analysis, Stocks to Buy
Donaldson Company (NYSE: DCI) manufactures
filtration devices. The Engine Products segment makes air intake, exhaust and liquid filtration systems for the construction, industrial, mining, agriculture and transportation markets. The Industrial Products segment provides dust, fume, and mist collectors and air filtration systems used in industrial gas turbines, computer disk drives and manufacturers’ clean rooms. Caterpillar (NYSE: CAT) accounts for over 10 percent of Donaldson’s sales.
The company pleased investors last week when it reported fiscal Q1 EPS of 53 cents and revenues of $525.6 million. Analysts had been looking for 48 cents and $484.8 million. The CEO cited international strength, in particular, for the solid numbers. Management also predicted FY08 EPS of $1.97-$2.07 ($1.99 consensus). The stock popped on the news and has since begun forming a bullish “pennant” consolidation pattern. Equities frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Continue reading Donaldson Company (DCI): Shares form bullish pennant
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