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Dover's (DOV) Earnings and Sales Surpass Estimates in Q3
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Dover Corporation (DOV - Free Report) recorded third-quarter 2020 adjusted earnings per share from continuing operations of $1.60, beating the Zacks Consensus Estimate of $1.31. The bottom-line figure remained flat year over year.
On a reported basis, Dover delivered earnings per share of $1.38 in the September-end quarter, reflecting a year-over-year decline of 1.4%.
Total revenues in the third quarter came in at $1,748 million, marking a decline of 4% from the year-ago quarter. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,637 million.
Costs and Margins
Cost of sales fell 5.5% year over year to $1,089 million during the July-September quarter. Gross profit dipped 2% year over year to $659 million. Gross margin came in at 37.8% compared with the year-ago quarter’s 36.8%.
Selling, general and administrative expenses slipped 2.3% to $382 million from the prior-year quarter. Operating profit decreased to $277 million from the year-ago quarter’s $283 million. Operating margin came in at 15.8% compared with the year-ago quarter’s 15.5%.
Dover Corporation Price, Consensus and EPS Surprise
The Engineered Products segment revenues went down to $387 million from the $427 million recorded in the year-ago quarter. The segment’s income decreased 12.2% year over year to $65 million.
The Fueling Solutions segment revenues declined to $380 million from the year-earlier quarter’s $412 million. The segment’s income edged down 1.5% year over year to $67 million.
The Imaging & Identification segment revenues fell to $266 million from the prior-year quarter’s $275 million. The segment’s income dropped 16.2% year over year to $52 million.
The Pumps & Process Solutions revenues climbed 2% year over year to $348 million in the third quarter. The segment income came in at $89.8 million compared with the year-ago quarter’s $77.4 million.
The Refrigeration & Food Equipment segment’s revenues declined to $368 million from the year-earlier quarter’s $370 million. The segment’s operating income declined 14.3% year over year to $40 million.
Bookings and Backlog
Dover’s bookings at the end of the third quarter were worth $1.80 billion compared with prior-year quarter’s $1.81 billion. Backlog increased 14.3% year over year to $1.58 billion at the end of the reported quarter.
Financial Position
Dover generated free cash flow of $295 million in the third quarter compared with the prior-year quarter’s $305 million. Cash flow from operations came in at $339 million in the September-end quarter compared with the year-ago quarter’s $351 million.
Outlook
Dover has raised the current-year adjusted earnings per share guidance on solid year-to-date margin performance and strong order backlog. The company now expects adjusted earnings per share in between $5.40 and $5.45 compared with the prior guidance of $5.00-$5.25.
Price Performance
Dover’s shares have gained 9% over the past year, outperforming the industry’s growth of 8.5%.
Sealed Air has a projected earnings growth rate of 3.9% for the current year. Shares of the company have gained 46.9% over the past six months.
Lawson Products has an estimated earnings growth rate of 3.4% for 2020. The company’s shares have rallied 59.8% in the past six months.
Fortune Brands has an expected earnings growth rate of 6.9% for the ongoing year. In the past six months, the stock has surged 105.7%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Dover's (DOV) Earnings and Sales Surpass Estimates in Q3
Dover Corporation (DOV - Free Report) recorded third-quarter 2020 adjusted earnings per share from continuing operations of $1.60, beating the Zacks Consensus Estimate of $1.31. The bottom-line figure remained flat year over year.
On a reported basis, Dover delivered earnings per share of $1.38 in the September-end quarter, reflecting a year-over-year decline of 1.4%.
Total revenues in the third quarter came in at $1,748 million, marking a decline of 4% from the year-ago quarter. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,637 million.
Costs and Margins
Cost of sales fell 5.5% year over year to $1,089 million during the July-September quarter. Gross profit dipped 2% year over year to $659 million. Gross margin came in at 37.8% compared with the year-ago quarter’s 36.8%.
Selling, general and administrative expenses slipped 2.3% to $382 million from the prior-year quarter. Operating profit decreased to $277 million from the year-ago quarter’s $283 million. Operating margin came in at 15.8% compared with the year-ago quarter’s 15.5%.
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 $387 million from the $427 million recorded in the year-ago quarter. The segment’s income decreased 12.2% year over year to $65 million.
The Fueling Solutions segment revenues declined to $380 million from the year-earlier quarter’s $412 million. The segment’s income edged down 1.5% year over year to $67 million.
The Imaging & Identification segment revenues fell to $266 million from the prior-year quarter’s $275 million. The segment’s income dropped 16.2% year over year to $52 million.
The Pumps & Process Solutions revenues climbed 2% year over year to $348 million in the third quarter. The segment income came in at $89.8 million compared with the year-ago quarter’s $77.4 million.
The Refrigeration & Food Equipment segment’s revenues declined to $368 million from the year-earlier quarter’s $370 million. The segment’s operating income declined 14.3% year over year to $40 million.
Bookings and Backlog
Dover’s bookings at the end of the third quarter were worth $1.80 billion compared with prior-year quarter’s $1.81 billion. Backlog increased 14.3% year over year to $1.58 billion at the end of the reported quarter.
Financial Position
Dover generated free cash flow of $295 million in the third quarter compared with the prior-year quarter’s $305 million. Cash flow from operations came in at $339 million in the September-end quarter compared with the year-ago quarter’s $351 million.
Outlook
Dover has raised the current-year adjusted earnings per share guidance on solid year-to-date margin performance and strong order backlog. The company now expects adjusted earnings per share in between $5.40 and $5.45 compared with the prior guidance of $5.00-$5.25.
Price Performance
Dover’s shares have gained 9% over the past year, outperforming the industry’s growth of 8.5%.
Zacks Rank and Stocks to Consider
Dover currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Sealed Air Corporation (SEE - Free Report) , Lawson Products, Inc. and Fortune Brands Home & Security, Inc. , each carrying a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sealed Air has a projected earnings growth rate of 3.9% for the current year. Shares of the company have gained 46.9% over the past six months.
Lawson Products has an estimated earnings growth rate of 3.4% for 2020. The company’s shares have rallied 59.8% in the past six months.
Fortune Brands has an expected earnings growth rate of 6.9% for the ongoing year. In the past six months, the stock has surged 105.7%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>