Back to top

Analyst Blog

We reiterate our Neutral recommendation on Dover Corporation (DOV - Analyst Report), which specializes in industrial products and manufacturing equipment in U.S. and has subsidiaries and affiliates in Canada, France, Germany, the Netherlands, Sweden, China and the United Kingdom.

Dover released its fourth quarter and fiscal 2011 financial results on January 25, 2012. The company reported earnings of $1.07 per share, outperforming the Zacks Consensus Estimate of $1.03 per share.

Results were 19% above the year-ago earnings. Total revenues were $2.0 billion, improving 15% year over year. Revenues were almost in line with the Zacks Consensus Estimate of $2.01 billion.

Dover expects to deliver earnings in the band of $4.70-$5.00 per share in 2012. The Zacks consensus Estimate is pegged at $4.87 per share.

Dover continues its strategy of growing through acquisitions to improve its product offering and complement its organic growth strategy. In 2011, Dover invested about $1.4 billion to acquire nine businesses within its targeted markets of Communication Components, Fluid, Refrigeration & Industrial, Energy, Printing and Identification.

Recently, Dover acquired the Maag Group, a leader in the external gear pump technology and engineered solutions. The Maag Group is fitted into the Downers Grove of Pump Solutions Group (PSG) within the Fluid Solutions platform of Engineered Solution segment. Dover expects to improve Fluid’s position by increasing Pump Solution Group’s product portfolio and technology in the chemicals and petrochemical markets.

Dover in the last quarter of 2011 realigned its businesses into a new segment structure in order to match the target growth markets. This attempt to restructure places Dover in a better position to reap benefits for the long term.

Dover has a significant exposure to the volatile semiconductor and electronics end-markets through its Electronics Technologies platform. Uncertainty in the economy impacting consumers’ spending  may affect the semiconductor market.

The Energy segment remains a concern for the company due to the volatility of energy prices as well as uncertainty regarding the rig count growth in 2012. Moreover, the drilling and extraction of oil or natural gas also become difficult due to the scarcity of readily available resources.

The shares of Dover hold a Zacks #3 Rank in the short term, which implies a Hold rating. It competes with the companies like Cooper Industries plc(, Ingersoll-Rand Plc ((IR - Analyst Report) and Weatherford International Ltd. ((WFT - Analyst Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%