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Dover (DOV) Surpasses Q2 Earnings by a Penny, Misses Sales
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Dover Corporation (DOV - Free Report) is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. The company mainly delivers innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.
Dover’s plans for organic revenue growth and margin improvement remain on track heading into the seasonally strong second-quarter. The company expects second-quarter results to benefit from several important deals in its key growth markets. However, Dover has been facing substantial headwinds in the energy-related markets due to lower oil prices. In fact, reduced demand and a decline in customer inventory in Dover’s North American Energy markets as well as lower customer capital spending in the retail refrigeration and oil & gas-related pump markets continue to mar its results. Moreover, foreign exchange volatility and lower order activity pose concerns.
We have highlighted some of the key stats from this just revealed announcement below:
Estimate Trend & Surprise History
Investors should note that the earnings estimate revisions for Dover depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 86 cents for the second quarter.
As regards earnings surprise, Dover has outpaced the Zacks Consensus Estimate in two out of the past four quarters, resulting in an average positive surprise of 0.17%.
Dover reported EPS of 87 cents in the second quarter of 2016, beating the Zacks Consensus Estimate by a penny. Investors should note that these figures take out special items.
Revenue
Dover posted revenues of $1.69 billion, which fell short the Zacks Consensus Estimate for revenues of $1.72 billion. Revenues also declined 4% year over year impacted by organic revenue decline.
Key Stats
Dover’s bookings at the end of second quarter were worth $1.70 billion, which fell roughly 1.6% from $1.73 billion at the end of second-quarter 2015. Backlog also declined to $1.09 billion at the end of the reported quarter from $1.16 billion at the year-ago quarter end.
Dover narrowed its full year 2016 earnings per share guidance range to $3.42 to $3.52 (excluding one time items) from the prior band of $3.57 to $3.72. The company also expects full year revenue to decline 3% to 5%, as compared to our prior forecast of a revenue decline of 2% to 5%. The guidance cut came on the back of delay in project timing & continued softness in oil & gas related markets.
Zacks Rank
Currently, Dover has a Zacks Rank #3 (Hold), but that could change following Dover’s earnings report which was just released.
Market Reaction
Dover’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Dover’s earnings report later!
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Dover (DOV) Surpasses Q2 Earnings by a Penny, Misses Sales
Dover Corporation (DOV - Free Report) is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. The company mainly delivers innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.
Dover’s plans for organic revenue growth and margin improvement remain on track heading into the seasonally strong second-quarter. The company expects second-quarter results to benefit from several important deals in its key growth markets. However, Dover has been facing substantial headwinds in the energy-related markets due to lower oil prices. In fact, reduced demand and a decline in customer inventory in Dover’s North American Energy markets as well as lower customer capital spending in the retail refrigeration and oil & gas-related pump markets continue to mar its results. Moreover, foreign exchange volatility and lower order activity pose concerns.
We have highlighted some of the key stats from this just revealed announcement below:
Estimate Trend & Surprise History
Investors should note that the earnings estimate revisions for Dover depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 86 cents for the second quarter.
As regards earnings surprise, Dover has outpaced the Zacks Consensus Estimate in two out of the past four quarters, resulting in an average positive surprise of 0.17%.
DOVER CORP Price and EPS Surprise
DOVER CORP Price and EPS Surprise | DOVER CORP Quote
Earnings
Dover reported EPS of 87 cents in the second quarter of 2016, beating the Zacks Consensus Estimate by a penny. Investors should note that these figures take out special items.
Revenue
Dover posted revenues of $1.69 billion, which fell short the Zacks Consensus Estimate for revenues of $1.72 billion. Revenues also declined 4% year over year impacted by organic revenue decline.
Key Stats
Dover’s bookings at the end of second quarter were worth $1.70 billion, which fell roughly 1.6% from $1.73 billion at the end of second-quarter 2015. Backlog also declined to $1.09 billion at the end of the reported quarter from $1.16 billion at the year-ago quarter end.
Dover narrowed its full year 2016 earnings per share guidance range to $3.42 to $3.52 (excluding one time items) from the prior band of $3.57 to $3.72. The company also expects full year revenue to decline 3% to 5%, as compared to our prior forecast of a revenue decline of 2% to 5%. The guidance cut came on the back of delay in project timing & continued softness in oil & gas related markets.
Zacks Rank
Currently, Dover has a Zacks Rank #3 (Hold), but that could change following Dover’s earnings report which was just released.
Market Reaction
Dover’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Dover’s earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>