Dover Corporation (DOV - Free Report) reported first-quarter 2023 adjusted earnings per share (EPS) from continuing operations of $1.94, in line with the Zacks Consensus Estimate. The bottom line increased 2% year over year.
On a reported basis, Dover delivered EPS of $1.63 in the quarter, up 4% year over year.
Total revenues in the first quarter increased 1.3% year over year to $2,079 million. The top line surpassed the Zacks Consensus Estimate of $2,071 million. Strong demand and recovery in global supply chains drove top-line growth across the majority of the company’s businesses in the quarter. Solid new order intake also aided growth.
Costs and Margins
Cost of sales rose 1.8% year over year to $1,332 million in the reported quarter. Gross profit increased 0.5% year over year to $747 million. The gross margin was 35.9% compared with the year-ago quarter’s 36.2%.
Selling, general and administrative expenses were down 2.7% to $432 million from the prior-year quarter. Adjusted EBITDA increased 2.7% year over year to $450 million. The adjusted EBITDA margin was 21.6% in the quarter compared with the prior-year quarter’s 21.3%.
Segmental Performance
The Engineered Products segment’s revenues were up 2% year over year to $498 million in the quarter. The segment’s adjusted EBITDA increased 16.7% year over year to $91 million.
The Clean Energy & Fueling segment’s revenues were $431 million compared with the prior-year quarter’s $458 million. The segment’s adjusted EBITDA was $80.6 million, down from the prior-year quarter’s $81.4 million.
The Imaging & Identification segment’s revenues moved up 4% year over year to $283 million. The segment’s adjusted EBITDA improved 15.6% year over year to $72 million.
The Pumps & Process Solutions segment’s revenues decreased 4.8% year over year to $414 million in the first quarter. The adjusted EBITDA in the segment totaled $126 million compared with the year-ago quarter’s $157 million.
The Climate & Sustainability Technologies segment’s revenues increased to $455 million from $399 million reported in the year-earlier quarter. The segment’s adjusted EBITDA totaled $80 million compared with $60 million in first-quarter 2022.
Bookings and Backlog
Dover’s bookings at the end of the first quarter were worth $2.04 billion compared with the prior-year quarter’s $2.25 billion. Backlog fell 13.2% year over year to $2.97 billion at the end of the reported quarter.
Financial Position
The company had a free cash flow of $193 million in the first quarter against the cash outflow of $27 million in the year-ago quarter. Cash flow from operations amounted to $241 million in the quarter under review compared with the prior-year quarter’s $24 million.
Outlook
The company expects to generate adjusted EPS of $8.85-$9.05 for 2023. It anticipates organic revenue growth of 3-5% for the year.
Price Performance
Dover’s shares have gained 4.6% in the past year compared with the industry’s growth of 11.8%.
Zacks Rank and Stocks to Consider
Dover currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , The Manitowoc Company, Inc. (MTW - Free Report) and OI Glass Inc. (OI - Free Report) . WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.
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Dover Corporation (DOV - Free Report) reported first-quarter 2023 adjusted earnings per share (EPS) from continuing operations of $1.94, in line with the Zacks Consensus Estimate. The bottom line increased 2% year over year.
On a reported basis, Dover delivered EPS of $1.63 in the quarter, up 4% year over year.
Total revenues in the first quarter increased 1.3% year over year to $2,079 million. The top line surpassed the Zacks Consensus Estimate of $2,071 million. Strong demand and recovery in global supply chains drove top-line growth across the majority of the company’s businesses in the quarter. Solid new order intake also aided growth.
Costs and Margins
Cost of sales rose 1.8% year over year to $1,332 million in the reported quarter. Gross profit increased 0.5% year over year to $747 million. The gross margin was 35.9% compared with the year-ago quarter’s 36.2%.
Selling, general and administrative expenses were down 2.7% to $432 million from the prior-year quarter. Adjusted EBITDA increased 2.7% year over year to $450 million. The adjusted EBITDA margin was 21.6% in the quarter compared with the prior-year quarter’s 21.3%.
Segmental Performance
The Engineered Products segment’s revenues were up 2% year over year to $498 million in the quarter. The segment’s adjusted EBITDA increased 16.7% year over year to $91 million.
The Clean Energy & Fueling segment’s revenues were $431 million compared with the prior-year quarter’s $458 million. The segment’s adjusted EBITDA was $80.6 million, down from the prior-year quarter’s $81.4 million.
The Imaging & Identification segment’s revenues moved up 4% year over year to $283 million. The segment’s adjusted EBITDA improved 15.6% year over year to $72 million.
The Pumps & Process Solutions segment’s revenues decreased 4.8% year over year to $414 million in the first quarter. The adjusted EBITDA in the segment totaled $126 million compared with the year-ago quarter’s $157 million.
The Climate & Sustainability Technologies segment’s revenues increased to $455 million from $399 million reported in the year-earlier quarter. The segment’s adjusted EBITDA totaled $80 million compared with $60 million in first-quarter 2022.
Bookings and Backlog
Dover’s bookings at the end of the first quarter were worth $2.04 billion compared with the prior-year quarter’s $2.25 billion. Backlog fell 13.2% year over year to $2.97 billion at the end of the reported quarter.
Financial Position
The company had a free cash flow of $193 million in the first quarter against the cash outflow of $27 million in the year-ago quarter. Cash flow from operations amounted to $241 million in the quarter under review compared with the prior-year quarter’s $24 million.
Outlook
The company expects to generate adjusted EPS of $8.85-$9.05 for 2023. It anticipates organic revenue growth of 3-5% for the year.
Price Performance
Dover’s shares have gained 4.6% in the past year compared with the industry’s growth of 11.8%.
Zacks Rank and Stocks to Consider
Dover currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , The Manitowoc Company, Inc. (MTW - Free Report) and OI Glass Inc. (OI - Free Report) . WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.
Research Chief 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.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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