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Dover (DOV) Earnings Beat, Revenues Miss in Q3

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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.

In the second quarter, June revenues and earnings had significantly improved from April's results. The company expects to see this trend in the third quarter as well and subsequently an improved second half of the year. However, generally weaker capital spending across several industrial end markets, continued weakness in longer cycle oil and gas exposed markets, and persistent headwinds in its retail refrigeration business related to production inefficiencies are expected to affect Dover’s results.

We have highlighted some of the key stats from this just revealed third-quarter earnings announcement below:

Estimate Trend & Surprise History

Investors should note that the earnings estimate revisions for Dover have moved south ahead of the earnings release. The Zacks Consensus Estimate has gone down 20% over the last 30 days and currently stands at 82 cents for the second quarter.

As regards earnings surprise, Dover has outpaced the Zacks Consensus Estimate in three out of the past four quarters, resulting in an average positive surprise of 1.21%.

DOVER CORP Price and EPS Surprise
 

DOVER CORP Price and EPS Surprise | DOVER CORP Quote

Earnings

Dover reported adjusted EPS of 87 cents in the third quarter of 2016, beating the Zacks Consensus Estimate of 82 cents. Investors should note that these figures take out special items.

Revenue

Dover posted revenues of $1.708 billion, which fell marginally short of the Zacks Consensus Estimate for revenues of $1.712 billion. Revenues also declined 4.5% year over year impacted by organic revenue decline.

Key Stats

Dover’s bookings at the end of second quarter were worth $1.69 billion, down from $1.70 billion at the end of third-quarter 2015. Backlog also declined to $1.08 billion at the end of the reported quarter from $1.04 billion at the year-ago quarter end.

Dover projects earnings per share to lie between $3.00 and $3.05 (excluding one time items) in 2016. Organic revenue is forecasted to decline 7% to 8%.

Zacks Rank

Currently, Dover has a Zacks Rank #5 (Strong Sell), 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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