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Why Is Dover Corporation (DOV) Up 4.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Dover Corporation (DOV - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dover Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dover reported second-quarter 2021 adjusted earnings per share from continuing operations of $2.06, which beat the Zacks Consensus Estimate of $1.84. The figure surged 82% year over year. Robust order levels and margin improvement initiatives contributed to the company’s quarterly results.
On a reported basis, Dover delivered earnings per share of $1.82 in the June-end quarter, reflecting a year-over-year jump of 112%.
Total revenues in the second quarter increased 36% year over year to $2,032 million. The top line also surpassed the Zacks Consensus Estimate of $1,900 million.
Costs and Margins
Cost of sales rose 32.8% year over year to $1,259 million in the reported quarter. Gross profit increased 39.8% year over year to $772 million. Gross margin came in at 37.9% compared with the year-ago quarter’s 36.9%.
Selling, general and administrative expenses flared up 16.6% to $428 million from the prior-year quarter. Adjusted EBITDA increased 59.3% year over year to $467 million. Adjusted EBITDA margin was 22.9% in the April-June quarter compared with the prior-year quarter’s 19.5%.
Segmental Performance
The Engineered Products segment revenues were up 29.2% year over year to $442 million in the June-end quarter. The segment’s adjusted operating income grew 28.8% year over year to $67 million.
The Fueling Solutions segment revenues climbed 34% to $437 million from the year-earlier quarter’s $326 million. The segment’s adjusted operating income jumped 66.6% year on year to $80 million.
The Imaging & Identification segment revenues increased 29% year over year to $294 million. The segment’s adjusted operating income rose 60.5% year over year to $61 million.
The Pumps & Process Solutions revenues grew 38.8% year over year to $429 million during the second quarter. The adjusted operating income for the segment came in at $139.5 million compared with the year-ago quarter’s $72.4 million.
The Refrigeration & Food Equipment segment’s revenues increased to $431 million from the year-earlier quarter’s $294 million. The segment’s adjusted operating income totaled $52 million, marking a year-over-year jump of 188.8%.
Bookings and Backlog
Dover’s bookings at the end of the second quarter were worth $2.37 billion compared with the prior-year quarter’s $1.41 billion. Backlog increased 69.1% year over year to $2.56 billion at the end of the reported quarter.
Financial Position
The company generated free cash flow of $218 million in the second quarter compared with the $233 million witnessed in the year-ago quarter. Cash flow from operations amounted to $260 million in the June-end quarter compared with the year-earlier quarter’s $272 million.
Outlook
Backed by stellar second-quarter 2021 results and the current demand scenario, the company is raising its adjusted earnings per share (EPS) and sales guidance for the current year. Dover now expects adjusted EPS to lie between $7.30 and $7.40, up from the prior projection of $6.75 and $6.85. Revenues are projected to register growth of 15-17% in 2021 compared with the earlier estimate of a 10-12% increase. The company is poised to gain from solid end-market demand, bookings rates and robust backlog.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 8.4% due to these changes.
VGM Scores
Currently, Dover Corporation has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dover Corporation has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Dover Corporation (DOV) Up 4.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Dover Corporation (DOV - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dover Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dover Beats Q2 Earnings Estimates, Hikes 2021 View
Dover reported second-quarter 2021 adjusted earnings per share from continuing operations of $2.06, which beat the Zacks Consensus Estimate of $1.84. The figure surged 82% year over year. Robust order levels and margin improvement initiatives contributed to the company’s quarterly results.
On a reported basis, Dover delivered earnings per share of $1.82 in the June-end quarter, reflecting a year-over-year jump of 112%.
Total revenues in the second quarter increased 36% year over year to $2,032 million. The top line also surpassed the Zacks Consensus Estimate of $1,900 million.
Costs and Margins
Cost of sales rose 32.8% year over year to $1,259 million in the reported quarter. Gross profit increased 39.8% year over year to $772 million. Gross margin came in at 37.9% compared with the year-ago quarter’s 36.9%.
Selling, general and administrative expenses flared up 16.6% to $428 million from the prior-year quarter. Adjusted EBITDA increased 59.3% year over year to $467 million. Adjusted EBITDA margin was 22.9% in the April-June quarter compared with the prior-year quarter’s 19.5%.
Segmental Performance
The Engineered Products segment revenues were up 29.2% year over year to $442 million in the June-end quarter. The segment’s adjusted operating income grew 28.8% year over year to $67 million.
The Fueling Solutions segment revenues climbed 34% to $437 million from the year-earlier quarter’s $326 million. The segment’s adjusted operating income jumped 66.6% year on year to $80 million.
The Imaging & Identification segment revenues increased 29% year over year to $294 million. The segment’s adjusted operating income rose 60.5% year over year to $61 million.
The Pumps & Process Solutions revenues grew 38.8% year over year to $429 million during the second quarter. The adjusted operating income for the segment came in at $139.5 million compared with the year-ago quarter’s $72.4 million.
The Refrigeration & Food Equipment segment’s revenues increased to $431 million from the year-earlier quarter’s $294 million. The segment’s adjusted operating income totaled $52 million, marking a year-over-year jump of 188.8%.
Bookings and Backlog
Dover’s bookings at the end of the second quarter were worth $2.37 billion compared with the prior-year quarter’s $1.41 billion. Backlog increased 69.1% year over year to $2.56 billion at the end of the reported quarter.
Financial Position
The company generated free cash flow of $218 million in the second quarter compared with the $233 million witnessed in the year-ago quarter. Cash flow from operations amounted to $260 million in the June-end quarter compared with the year-earlier quarter’s $272 million.
Outlook
Backed by stellar second-quarter 2021 results and the current demand scenario, the company is raising its adjusted earnings per share (EPS) and sales guidance for the current year. Dover now expects adjusted EPS to lie between $7.30 and $7.40, up from the prior projection of $6.75 and $6.85. Revenues are projected to register growth of 15-17% in 2021 compared with the earlier estimate of a 10-12% increase. The company is poised to gain from solid end-market demand, bookings rates and robust backlog.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 8.4% due to these changes.
VGM Scores
Currently, Dover Corporation has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dover Corporation has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.