Shares of Donaldson Company (DCI) surged 6.98% in pre-market trading on Tuesday following the release of its third-quarter fiscal 2025 financial results, which exceeded analysts' expectations and prompted the company to raise its full-year guidance.

The filtration products manufacturer reported adjusted earnings of $0.99 per share for the quarter ended April 30, up from $0.92 a year earlier and surpassing the FactSet consensus estimate of $0.95. Sales for the fiscal quarter rose to $940.1 million from $927.9 million in the previous year, also beating analysts' expectations of $933.4 million.

In light of the strong performance, Donaldson raised its fiscal 2025 outlook. The company now expects adjusted earnings per share to be between $3.64 and $3.70, up from the previous guidance of $3.60 to $3.68. The revised forecast is higher than the FactSet consensus of $3.60. Additionally, Donaldson projects sales growth of 1% to 3% for the full year, slightly narrowed from its earlier forecast of flat to 4% growth.

Tod Carpenter, Donaldson's Chief Executive Officer, expressed optimism about the company's performance, stating, "For the full year, we expect to generate record sales and adjusted earnings." He also highlighted the company's strategic positioning, noting that their region-for-region footprint and improved decision-making speed following an organizational redesign would help mitigate the impact of current tariffs on earnings.

The market's positive reaction to Donaldson's results and outlook underscores investor confidence in the company's ability to navigate challenges and deliver strong financial performance in the current economic environment.