Dover Corporation (DOV - Free Report) recorded second-quarter 2020 adjusted earnings per share from continuing operations of $1.13, beating the Zacks Consensus Estimate of 89 cents per share. The figure, however, declined 28% from the prior-year quarter’s $1.56 per share as the COVID-19 pandemic impacted its end markets.
On a reported basis, Dover delivered earnings per share of 86 cents in the June-end quarter, reflecting a year-over-year plunge of 36%.
Total revenues in the second quarter came in at $1,499 million, marking a decline of 17% from the year-ago quarter. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,458 million.
Costs and Margins
Cost of sales fell 17% year over year to $948 million during the April-June quarter. Gross profit declined 18% year over year to $552 million. Gross margin came in at 36.8% compared with the year-ago quarter’s 37.2%.
Selling, general and administrative expenses slipped 7.5% to $367 million from the prior-year quarter. Operating profit decreased to $185 million from the year-ago quarter’s $276 million. Operating margin came in at 12.3% compared with the year-ago quarter’s 15.2%.
Dover Corporation Price, Consensus and EPS Surprise
Segmental Performance
The Engineered Products segment revenues went down to $342.3 million from the $429.9 million recorded in the year-ago quarter. The segment’s income decreased 37.6% year over year to $48 million.
The Fueling Solutions segment revenues declined to $326.5 million from the $390.6 million recorded in the prior-year quarter. The segment’s income declined 11.3% year over year to $47 million.
The Imaging & Identification segment revenues fell to $228 million from the $267 million recorded in the comparable period last year. The segment’s income plunged 31% year over year to $38 million.
The Pumps & Process Solutions revenues dropped 8.8% year over year to $309 million in the quarter. The segment income came in at $68 million compared with the year-ago quarter’s $76 million.
The Refrigeration & Food Equipment segment’s revenues declined 23.6% to $294 million from the year-earlier quarter’s $385 million. The segment’s operating income slumped 75% year over year to $11.5 million.
Bookings and Backlog
Dover’s bookings at the end of the second quarter were worth $1.41 billion, down 22.5% year over year. Backlog increased 7.8% year over year to $1.52 billion at the end of the reported quarter.
Financial Position
Dover generated free cash flow of $232.8 million in the reported quarter compared with the prior-year quarter’s $154.7 million. Cash flow from operations came in at $271.8 million in the June-end quarter compared with the year-ago quarter’s $208.7 million.
Outlook
Dover has re-initiated the current-year guidance on the solid year-to-date margin performance and expectations of a possible improvement in demand during the September-end quarter. The company now expects adjusted earnings per share (EPS) between $5.00 and $5.25.
Dover is poised to benefit from year-over-year higher backlog driven by its long business cycle and sequential intra-quarter improvement in many shorter cycle businesses.
Price Performance
Dover’s shares have gained 5.5% over the past year, as against the industry’s loss of 4.8%.
Zacks Rank and Other Stocks to Consider
Dover currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the Industrial Products sector are Lakeland Industries, Inc. (LAKE - Free Report) , Energous Corporation (WATT - Free Report) and Chart Industries, Inc. (GTLS - Free Report) . While Lakeland Industries sports a Zacks Rank #1 (Strong Buy), Energous Corporation and Chart Industries carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has a projected earnings growth rate of 418% for fiscal 2020. The company’s shares have appreciated 50.9% in the past three months.
Energous has an expected earnings growth rate of 44% for 2020. The stock has soared 252.6% over the past three months.
Chart Industries has an estimated earnings growth rate of 2.4% for the ongoing year. The company’s shares have rallied 69.1% in the past three months.
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Dover Corporation (DOV - Free Report) recorded second-quarter 2020 adjusted earnings per share from continuing operations of $1.13, beating the Zacks Consensus Estimate of 89 cents per share. The figure, however, declined 28% from the prior-year quarter’s $1.56 per share as the COVID-19 pandemic impacted its end markets.
On a reported basis, Dover delivered earnings per share of 86 cents in the June-end quarter, reflecting a year-over-year plunge of 36%.
Total revenues in the second quarter came in at $1,499 million, marking a decline of 17% from the year-ago quarter. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,458 million.
Costs and Margins
Cost of sales fell 17% year over year to $948 million during the April-June quarter. Gross profit declined 18% year over year to $552 million. Gross margin came in at 36.8% compared with the year-ago quarter’s 37.2%.
Selling, general and administrative expenses slipped 7.5% to $367 million from the prior-year quarter. Operating profit decreased to $185 million from the year-ago quarter’s $276 million. Operating margin came in at 12.3% compared with the year-ago quarter’s 15.2%.
Dover Corporation Price, Consensus and EPS Surprise
Segmental Performance
The Engineered Products segment revenues went down to $342.3 million from the $429.9 million recorded in the year-ago quarter. The segment’s income decreased 37.6% year over year to $48 million.
The Fueling Solutions segment revenues declined to $326.5 million from the $390.6 million recorded in the prior-year quarter. The segment’s income declined 11.3% year over year to $47 million.
The Imaging & Identification segment revenues fell to $228 million from the $267 million recorded in the comparable period last year. The segment’s income plunged 31% year over year to $38 million.
The Pumps & Process Solutions revenues dropped 8.8% year over year to $309 million in the quarter. The segment income came in at $68 million compared with the year-ago quarter’s $76 million.
The Refrigeration & Food Equipment segment’s revenues declined 23.6% to $294 million from the year-earlier quarter’s $385 million. The segment’s operating income slumped 75% year over year to $11.5 million.
Bookings and Backlog
Dover’s bookings at the end of the second quarter were worth $1.41 billion, down 22.5% year over year. Backlog increased 7.8% year over year to $1.52 billion at the end of the reported quarter.
Financial Position
Dover generated free cash flow of $232.8 million in the reported quarter compared with the prior-year quarter’s $154.7 million. Cash flow from operations came in at $271.8 million in the June-end quarter compared with the year-ago quarter’s $208.7 million.
Outlook
Dover has re-initiated the current-year guidance on the solid year-to-date margin performance and expectations of a possible improvement in demand during the September-end quarter. The company now expects adjusted earnings per share (EPS) between $5.00 and $5.25.
Dover is poised to benefit from year-over-year higher backlog driven by its long business cycle and sequential intra-quarter improvement in many shorter cycle businesses.
Price Performance
Dover’s shares have gained 5.5% over the past year, as against the industry’s loss of 4.8%.
Zacks Rank and Other Stocks to Consider
Dover currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the Industrial Products sector are Lakeland Industries, Inc. (LAKE - Free Report) , Energous Corporation (WATT - Free Report) and Chart Industries, Inc. (GTLS - Free Report) . While Lakeland Industries sports a Zacks Rank #1 (Strong Buy), Energous Corporation and Chart Industries carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has a projected earnings growth rate of 418% for fiscal 2020. The company’s shares have appreciated 50.9% in the past three months.
Energous has an expected earnings growth rate of 44% for 2020. The stock has soared 252.6% over the past three months.
Chart Industries has an estimated earnings growth rate of 2.4% for the ongoing year. The company’s shares have rallied 69.1% in the past three months.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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