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Dover's (DOV) Q2 Earnings & Sales Beat Estimates, Down Y/Y
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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
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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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.
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Dover's (DOV) Q2 Earnings & Sales Beat Estimates, Down Y/Y
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
Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote
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.
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