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Dover (DOV) to Report Q1 Earnings: What's in the Offing?

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Dover Corporation (DOV - Free Report) is set to release first-quarter 2021 results, before the opening bell on Apr 20.

Q4 Results

In the last reported quarter, Dover’s earnings and sales not only beat the Zacks Consensus Estimate but also improved year over year.

The company has beat earnings estimates in each of the trailing four quarters, the average surprise being 20%.

Dover Corporation Price and EPS Surprise Dover Corporation Price and EPS Surprise

Dover Corporation price-eps-surprise | Dover Corporation Quote

Q1 Estimates

The Zacks Consensus Estimate for first-quarter 2021 earnings per share is currently pegged at $1.47, suggesting an improvement of 5.8% from the prior-year quarter. The same for total revenues stands at $1,724 million, indicating growth of 5% from the year-ago reported figure. The Zacks Consensus Estimate for the March-end quarter’s earnings was revised upward by 1% over the past 30 days.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Dover this time around. Notably, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Dover is -0.77%.

Zacks Rank: Dover currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors to Note

Dover has been witnessing improved order levels in multiple markets, notably biopharma, aerospace & defense, heat exchangers, food retail and marking & coding business. Further, manufacturing activity has been on the rise so far this year. This is likely to have favored the to-be-reported quarter’s performance. Further, the company’s backlog increased 20.7% year over year to $1.76 billion at the end of fourth-quarter 2020. This may get reflected in the to-be-reported quarter’s results.

Further, the company’s efforts to improve productivity and cost initiatives might have led to improved margins in the quarter under review. Dover has been executing restructuring programs to better align costs and operations with the current market conditions through targeted facility consolidations, headcount reductions and other measures. These actions are likely to have benefited the first-quarter performance.

Segments Expectations

In the Engineered Products segment, demand for engineered products, vehicle service, industrial automation and automotive Original Equipment Manufacturers (OEM) markets are showing signs of improvements, which might get reflected in the to-be-reported quarter’s top line. Meanwhile, structural cost actions might have favored the segment’s margins in the quarter to be reported. The Zacks Consensus Estimate for the segment’s revenues for the first quarter is currently pegged at $409 million, flat compared with the prior-year quarter. The estimate for operating profit stands at $72 million, indicating an improvement of 4% from the prior-year quarter’s figure of $69 million.

The Fueling Solutions segment is likely to have gained from productivity and pricing actions in the first quarter. The Zacks Consensus Estimate for the segment’s revenues stands at $358 million, suggesting a year-over-year decline of 1%. Meanwhile, the estimate for operating profit is pegged at $56 million, suggesting growth of 4% year over year.

The Imaging & Identification segment’s results are likely to reflect strong demand for consumables and fast-moving consumer goods solutions. However, weakness digital textile printing due to the impact of the pandemic on apparel markets might have offset some of the impact. The segment’s revenues are expected to show an improvement of 6% year over year to $273 million. The Zacks Consensus Estimate for the segment’s operating profit stands at $55 million, suggesting an improvement of 8% increase from the prior-year quarter’s $51 million.

In Refrigeration & Food Equipment segment, recovery in volumes and cost-control actions may have aided the segment’s first-quarter results. The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $344 million, up 10% from the prior-year quarter’s revenues of $320 million. The estimate for operating profit stands at $32 million, indicating an improvement of 37% from the prior-year quarter’s figure of $23 million.

In the Pumps & Process Solutions segment, strong demand for food and beverage, recovery in industrial pumps, and strong growth in biopharma and hygiene market on account of the pandemic are likely to have aided the segment’s first-quarter performance. However, the oil and gas mid- and downstream markets served primarily by precision components business continues to be impacted by deferral of capital expenditure and refurbishment spending in refining and pipelined operators. This might have weighed on the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $333 million, suggesting year-over-year growth of 4%. The estimate for operating profit of $77 million suggests an improvement of 17% year over year.

Share Price Performance

The company’s shares have gained 57.6% over the past year compared with the industry’s rally of 186.8%.

Stocks to Consider

Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +3.15% and a Zacks Rank of 2, currently.

Terex Corporation (TEX - Free Report) has a Zacks Rank #2 and an Earnings ESP of +14.7%, at present.

AGCO Corporation (AGCO - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.40%.

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