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Dover (DOV) Earnings & Sales Beat Estimates in Q1, Up Y/Y

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Dover Corporation (DOV - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) from continuing operations of $1.90, beating the Zacks Consensus Estimate of $1.84. The bottom line increased 5% year over year.

On a reported basis, Dover delivered EPS of $1.56 in the quarter, down 3% year over year.

Total revenues in the first quarter increased 10% year over year to $2,052 million. The top line surpassed the Zacks Consensus Estimate of $2,029 million. Strong demand and robust order and backlogs rates drove the top-line growth across the majority of the company’s businesses during the quarter.

Costs and Margins

Cost of sales rose 14% year over year to $1,309 million in the reported quarter. Gross profit increased 3% year over year to $743 million. The gross margin was 36.2% compared with the year-ago quarter’s 38.6%.

Selling, general and administrative expenses were up 8.5% to $444 million from the prior-year quarter’s figure. Adjusted operating profit declined 2% year over year to $349.6 million. Adjusted operating margin was 17% in the quarter compared with the prior-year quarter’s 19%.

 

Dover Corporation Price, Consensus and EPS Surprise

 

Dover Corporation Price, Consensus and EPS Surprise

Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote

Segmental Performance

The Engineered Products segment’s revenues were up 14% year over year to $488 million in the quarter. The segment’s adjusted operating income dropped 8.8% year over year to $66 million.

The Clean Energy & Fueling segment’s revenues came in at $458.3 million compared with the prior-year quarter’s $389.6 million. The segment’s adjusted operating income was $42 million, down from the prior-year quarter’s $67 million.

The Imaging & Identification segment’s revenues moved down 4% year over year to $272 million. The segment’s adjusted operating income declined 8.6% year over year to $53 million.

The Pumps & Process Solutions segment’s revenues increased 10% year over year to $435 million in the first quarter. The adjusted operating income in the segment totaled $140 million compared with the year-ago quarter’s $122 million.

The Climate & Sustainability Technologies segment’s revenues increased to $399 million from $372 million reported in the year-earlier quarter. The segment’s adjusted operating income totaled $49 million compared with $38 million in first-quarter 2021.

Bookings and Backlog

Dover’s bookings at the end of the first quarter were worth $2.25 billion compared with the prior-year quarter’s $2.33 billion. Backlog surged 54% year over year to $3.42 billion at the end of the reported quarter.

Financial Position

The company had a free cash outflow of $27 million in the first quarter against the cash inflow of $146 million in the year-ago quarter. Cash flow from operations amounted to $24 million in the quarter under review compared with the prior-year quarter’s $177 million.

Dover recently acquired certain intellectual property associated to electrically operated refuse collection vehicle bodies from Boivin Evolution Inc. The buyout will expand the technological footprint and product portfolio of Dover’s Environmental Solutions Group business unit within its Engineered Products segment.

Outlook

Dover reaffirms adjusted EPS guidance between $8.45 and $8.65 for 2022. It expects organic revenue growth of 7-9% for the year. Robust demand and record backlog levels will continue to drive the company’s revenues in the current year.

Price Performance

Dover’s shares have gained 5.4% in the past year compared with the industry’s loss of 9.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank and Stocks to Consider

Dover currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Packaging Corporation of America (PKG - Free Report) , Greif Inc. (GEF - Free Report) and Sonoco Products Company (SON - Free Report) . While PKG flaunts a Zacks Rank #1 (Strong Buy), GEF & SON carry Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Packaging Corp has an expected earnings growth rate of 12.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 9.5% in the past 60 days.

PKG has a trailing four-quarter earnings surprise of 22.7%, on average. PKG’s shares have gained 9.9% in the past six months.

Greif has an estimated earnings growth rate of around 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%.

GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average.

Sonoco has a projected earnings growth rate of 39.7% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 6.9% in the past 60 days.

SON delivered a trailing four-quarter earnings surprise of 1.74%, on average. Sonoco has moved up 4.1% in the past six months.

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