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In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in its top and bottom lines. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 4%.
The Zacks Consensus Estimate for DOV’s fourth-quarter 2022 earnings per share is pegged at $2.15, suggesting growth of 20.8% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.1 billion, indicating an increase of 6% from the prior year’s reported figure.
Price Performance
Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%.
Image Source: Zacks Investment Research
Factors at Play
Dover has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited the fourth-quarter performance. Gains from the recent acquisitions are also likely to have contributed to DOV’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the fourth quarter.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the December-end quarter’s top-line results. Improved price-cost dynamics and volume are likely to have offset input shortages.
The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $519 million, suggesting growth of 12% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $98 million, indicating a rise from $70 million reported in the prior-year quarter.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays and caution in Europe/Asia. Margins are likely to have gained from a positive product mix and the effects of decisive actions to reduce costs based on above-ground fueling.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $464 million for the quarter to be reported, suggesting a rise of 12.8% from the year-earlier actuals. The consensus estimate for the segment’s adjusted EBITDA is pegged at $102 million, indicating 27.5% growth from the year-ago reported number.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers and spares, as well as continued strength in consumables. The Zacks Consensus Estimate for the segment’s revenues is pinned at $282 million, suggesting a decline from the $292 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is estimated to be $72 million, suggesting growth of 2.8% from the prior-year quarter’s reported level.
In the Pumps & Process Solutions segment, robust demand for industrial pumps and polymer processing activity is likely to have aided the segment’s fourth-quarter performance. Customers’ demand shift from COVID-19 vaccine production to alternative therapies is expected to have impacted its biopharma business.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $436 million, suggesting a decline of 2.5% from the prior-year quarter’s reported figure. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $133 million, indicating a decline of 16.9% from the year-earlier quarter’s reported number.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s fourth-quarter performance. Its heat exchanger and beverage packaging business has also been seeing strong order rates. Margins are likely to have gained as food retail productivity improved and volume increased.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $411 million, implying 9.3% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $67 million, hinting at growth from $42.3 million reported in the year-ago quarter.
Here’s What Our Zacks Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for Dover this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of -0.47%.
Zacks Rank: Dover currently carries a Zacks Rank # 4 (Sell).
Here are some Industrial Products stocks, which you might consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Deere & Co. (DE - Free Report) currently has an Earnings ESP of +2.83% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 2.6% north in the past 60 days and is pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem Inc. (XYL - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The Zacks Consensus Estimate for ITW's fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Image: Bigstock
Dover (DOV) to Report Q4 Earnings: What's in the Offing?
Dover Corporation (DOV - Free Report) will release fourth-quarter 2022 results on Jan 31, before the opening bell.
Q3 Results
In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in its top and bottom lines. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 4%.
Dover Corporation Price and EPS Surprise
Dover Corporation price-eps-surprise | Dover Corporation Quote
Q4 Estimates
The Zacks Consensus Estimate for DOV’s fourth-quarter 2022 earnings per share is pegged at $2.15, suggesting growth of 20.8% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.1 billion, indicating an increase of 6% from the prior year’s reported figure.
Price Performance
Dover’s shares have declined 18.4% in the past year compared with the industry’s fall of 6.3%.
Image Source: Zacks Investment Research
Factors at Play
Dover has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited the fourth-quarter performance. Gains from the recent acquisitions are also likely to have contributed to DOV’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the fourth quarter.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the December-end quarter’s top-line results. Improved price-cost dynamics and volume are likely to have offset input shortages.
The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $519 million, suggesting growth of 12% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $98 million, indicating a rise from $70 million reported in the prior-year quarter.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays and caution in Europe/Asia. Margins are likely to have gained from a positive product mix and the effects of decisive actions to reduce costs based on above-ground fueling.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $464 million for the quarter to be reported, suggesting a rise of 12.8% from the year-earlier actuals. The consensus estimate for the segment’s adjusted EBITDA is pegged at $102 million, indicating 27.5% growth from the year-ago reported number.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers and spares, as well as continued strength in consumables. The Zacks Consensus Estimate for the segment’s revenues is pinned at $282 million, suggesting a decline from the $292 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is estimated to be $72 million, suggesting growth of 2.8% from the prior-year quarter’s reported level.
In the Pumps & Process Solutions segment, robust demand for industrial pumps and polymer processing activity is likely to have aided the segment’s fourth-quarter performance. Customers’ demand shift from COVID-19 vaccine production to alternative therapies is expected to have impacted its biopharma business.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $436 million, suggesting a decline of 2.5% from the prior-year quarter’s reported figure. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $133 million, indicating a decline of 16.9% from the year-earlier quarter’s reported number.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s fourth-quarter performance. Its heat exchanger and beverage packaging business has also been seeing strong order rates. Margins are likely to have gained as food retail productivity improved and volume increased.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $411 million, implying 9.3% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $67 million, hinting at growth from $42.3 million reported in the year-ago quarter.
Here’s What Our Zacks Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for Dover this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of -0.47%.
Zacks Rank: Dover currently carries a Zacks Rank # 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some Industrial Products stocks, which you might consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Deere & Co. (DE - Free Report) currently has an Earnings ESP of +2.83% and a Zacks Rank #2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has moved 2.6% north in the past 60 days and is pegged at $5.49 per share. The consensus mark suggests year-over-year growth of 88.1%
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Xylem Inc. (XYL - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 60 days and is pegged at 79 cents per share. This suggests year-over-year growth of 25.4%
The Zacks Consensus Estimate for XYL’s quarterly revenues is pegged at $1.4 billion, indicating year-over-year growth of 6.1%. XYL has a trailing four-quarter earnings surprise of 13.3%, on average.
Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The Zacks Consensus Estimate for ITW's fourth-quarter 2022 earnings has increased 0.4% in the past 60 days and is pegged at $2.61 per share. This suggests year-over-year growth of 33.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.9 billion, indicating growth of 5.3% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 4.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.