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Dover (DOV) to Report Q4 Earnings: Is a Beat in Store?

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Dover Corporation (DOV - Free Report) is set to release fourth-quarter 2021 results before the opening bell on Jan 27.

Q3 Results

In the last reported quarter, Dover’s earnings and sales beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 13.8%, on average.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter 2021 earnings per share is currently pegged at $1.66, suggesting growth of 7% from the prior-year quarter’s levels. The same for total revenues is pinned at $1.9 billion, indicating a year-over-year increase of 7%.

Dover Corporation Price and EPS Surprise

 

Dover Corporation Price and EPS Surprise

Dover Corporation price-eps-surprise | Dover Corporation Quote

 

What Our Zacks Model Indicates

Our proven model conclusively predicts an earnings beat for Dover this time around. 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.

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 at +0.33%.

Zacks Rank: Dover currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

Dover is witnessing robust order trends across most of its business, particularly in Engineered Products, Pumps & Process Solutions and Refrigeration & Food Equipment segments. Thus, benefits from robust bookings and order backlog across the company’s segments might get reflected in fourth-quarter performance. Further, strong recovery in the manufacturing sector in 2020 and improved demand environment are likely to have contributed to the company’s fourth-quarter performance.

Dover’s efforts to boost productivity and cost initiatives are anticipated to have driven margins during the quarter under review. It 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 aided the company’s quarterly performance.

Segmental Estimates

In the Engineered Products segment, demand for engineered products, vehicle service and industrial automation has been strong, which might get reflected in the to-be-reported quarter’s top line. The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is currently pegged at $431 million, suggesting year-over-year growth of 9.4%. The estimate for operating profit stands at $64 million, calling for an improvement of 14.3% from the prior-year quarter’s figure of $48 million. However, supply chain constraints and raw material cost inflation are likely to have affected the segment’s margin during the quarter.

The Fueling Solutions segment is likely to have gained from robust growth in systems and software, recovering underground demand and vehicle wash during the October-December quarter. The Zacks Consensus Estimate for the segment’s revenues is pinned at $422 million, suggesting a year-over-year increase of 31.7%. The estimate for the operating profit is pegged at $69 million, calling for a decline from the prior-year quarter’s $70 million.

The Imaging & Identification segment’s results are likely to reflect solid demand for the consumables and fast-moving consumer goods solutions. The Zacks Consensus Estimate for the segment’s revenues is pinned at $308 million, indicating year-over-year growth of 7%. The Zacks Consensus Estimate for the segment’s operating profit is estimated at $65 million, suggesting an increase of 25% from the prior-year quarter’s levels.

In the Refrigeration & Food Equipment segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s fourth-quarter performance. The Zacks Consensus Estimate for the segment’s quarterly revenues is currently pegged at $350 million, calling for 2.3% growth year over year. The estimate for operating profit is pegged at $29.4 million compared with the year-ago quarter’s $27.7 million.

In the Pumps & Process Solutions segment, robust demand for the biopharma connectors and pumps, driven by the vaccine and non-COVID-related pharmaceutical tailwinds, are likely to have aided the segment’s December-end quarter’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $400 million, suggesting year-over-year growth of 15%. The consensus mark for the segment’s fourth quarter’s operating profit is pegged at $108 million, indicating year-over-year growth of 32%.

Share Price Performance

Dover’s shares have gained 41.3% in the past year compared with the industry’s growth of 4.1%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

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

W.W. Grainger, Inc. (GWW - Free Report) currently has an Earnings ESP of +2.29% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings has moved up 0.2% in the past 30 days to $5.25 per share, suggesting year-over-year growth of 43.4%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $3.2 billion, which indicates an increase of 11.3% from the prior-year quarter’s levels. Grainger has a long-term earnings growth rate of 13%.

AGCO Corporation (AGCO - Free Report) currently has an Earnings ESP of +25% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings is currently pegged at $1.72 per share, suggesting 11.7% growth from the year-ago quarter’s tally.

The Zacks Consensus Estimate for quarterly revenues is pinned at $3.04 billion, highlighting year-over-year growth of 11.9%. AGCO Corporation has a trailing four-quarter earnings surprise of 47.5%, on average. It has a long-term earnings growth of 19.1%.

Terex Corporation (TEX - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2021 earnings have been stable in the past 30 days and is currently pegged at 55 cents per share. The projection indicates 162% growth from the prior-year quarter’s tally.

The Zacks Consensus Estimate for Terex’s quarterly revenues is pegged at $948.5 million, which indicates an year-over-year improvement of 20.5%. TEX has a trailing four-quarter earnings surprise of 80.4%, on average.

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