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Dover (DOV) Earnings & Revenues Top Estimates in Q1, Up Y/Y

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Dover Corporation (DOV - Free Report) reported first-quarter 2019 adjusted earnings per share from continuing operations of $1.24. The figure improved 37.7% from the prior-year quarter’s 90 cents. Earnings beat the Zacks Consensus Estimate of $1.12, delivering positive surprise of 10.7%.

On a reported basis, Dover posted earnings per share of 72 cents in the quarter, up 2.8% year over year. Earnings included acquisition-related amortization costs of 18 cents and rightsizing costs of 2 cents.

Total revenues in the reported quarter came in at $1,725 million, reflecting year-over-year increase of 5.3%. Revenues also beat the Zacks Consensus Estimate of $1,687 million, backed by organic growth of 8.3% and acquisition growth of 0.5%. This was partly offset by a 3.4% unfavorable foreign-exchange impact.
 
Costs and Margins

Cost of sales grew 6.4% to $1,101 million in the first quarter. Gross profit increased 3.4% year over year to $623 million.

Selling, general and administrative expenses slipped 6.2% to $408 million from $435 million reported in the prior-year quarter. Operating profit marginally improved to $168 million from the year-ago quarter’s reported tally of $167 million.

Dover Corporation Price, Consensus and EPS Surprise

Segmental Performance
 
The Engineered Systems segment revenues improved 2.4% to $687 million from $671 million recorded in the year-ago quarter.  The segment’s income increased 20.5% year over year to $123 million.

The Fluids segment revenues were up 12% year over year to $703 million in the quarter. The segment’s income declined 22.3% year over year to $52 million. Excluding the loss on sale of assets related to Finder, segment’s income surged 47.7% year over year.
 
The Refrigeration & Food Equipment segment’s revenues edged down 1.1% to $334 million from the year-ago quarter’s reported figure of $338 million. The segment’s operating income also dropped 17.2% year over year to $24 million.

Bookings and Backlog

Dover’s bookings at the end of the first quarter were worth $1.78 billion, down from $1.82 billion recorded at the end of first-quarter 2018. Backlog increased 6% year over year to $1.42 billion at the end of the reported quarter.

Financial Position

Dover generated a negative free cash flow of $12.5 million during the Mar-end quarter compared with $29 million in the prior-year quarter. Cash flow from operations came in at $24.5 million in the first quarter compared with $15.5 million reported in the year-ago period.
 
Outlook
 
Dover maintained its adjusted earnings per share guidance of $5.65-$5.85 for full-year 2019.

Share Price Performance

Over the past year, Dover has gained around 0.8% compared with the industry’s growth of 5.9%.



Zacks Rank and Stocks to Consider

Dover currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have rallied 128.3%, in the past year.

Lawson Products has an outstanding projected earnings growth rate of 102.5% for the current year. The stock has appreciated 23.3% in a year’s time.

DXP Enterprises has an expected earnings growth rate of 21.6% for 2019. The company’s shares have gained 18.6%, over the past year.

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