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Dover (DOV) to Report Q2 Earnings: What's in the Offing?

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Dover Corporation (DOV - Free Report) will release second-quarter 2022 results before the opening bell on Jul 21.

Q1 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 7.4%, on average.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter 2022 earnings per share is currently pegged at $2.08, suggesting growth of 0.97% from the prior-year quarter’s levels. The same for total revenues is pinned at $2.17 billion, indicating a year-over-year increase of 7.01%.

Price Performance

Dover’s shares have declined 32.2% in the past six months compared with the industry’s fall of 24%.

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Image Source: Zacks Investment Research

Factors at Play

Dover is witnessing robust bookings and order backlog across its segments stemming from strong demand and shipment levels, which is likely to have benefited second-quarter performance. A strong recovery in the manufacturing sector and acquisition benefits are likely to have contributed to the company’s performance in the to-be-reported quarter.

Dover’s efforts to boost productivity, volume leverage and tight cost controls 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, backed by stock backlog and bookings coupled with solid orders for refuse trucks and software solutions. These factors might get reflected in the June-end quarter’s top line. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $475 million, suggesting year-over-year growth of 7.5%. The estimate for operating profit is pegged at $68 million compared with the prior-year quarter’s $67 million. Omicron-led absenteeism, labor shortages and higher logistics costs are likely to have affected the segment’s aerospace and defense business margin during the quarter.

The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and software solutions during the April-June quarter. The Zacks Consensus Estimate for the segment’s revenues is pegged at $493 million, suggesting a year-over-year increase of 13%. The estimate for the operating profit is pegged at $78 million, calling for a 2.5% decline year over year.

The Imaging & Identification segment’s results will likely reflect benefits from the component recovery in the marketing and coding business and strong growth in serialization and brand protection software. The Zacks Consensus Estimate for the segment’s revenues is pinned at $286 million, indicating a year-over-year fall of 3%. The Zacks Consensus Estimate for the segment’s operating profit is estimated at $59 million, suggesting a decline of 3.3% from the prior-year quarter’s levels.

In the Pumps & Process Solutions segment, robust demand for industrial pumps and polymer processing activity will likely have aided the segment’s second quarter’s performance. The customers demand shift from COVID vaccine production to alternative therapies will aid its biopharma business. The Zacks Consensus Estimate for the segment’s revenues is pegged at $459 million, suggesting year-over-year growth of 7%. The consensus mark for the segment’s second quarter’s operating profit is pegged at $144 million, indicating year-over-year growth of 3%.

In the Climate and Sustainability Technologies segment, strong order rates in the core food retail business and large backlogs are likely to have aided the segment’s second-quarter performance. Its heat exchanger and beverage packaging business are also seeing strong order rates. The Zacks Consensus Estimate for the segment’s quarterly revenues is currently pegged at $447 million, calling for 3.7% growth year over year. The estimate for operating profit is pegged at $60 million compared with the year-ago quarter’s $52 million.

Positive price/cost, volume growth, productivity gains and favorable product and business mix are likely to have benefited the Imaging & Identification, Pumps & Process Solutions and Sustainability Technologies segments’ margins in the quarter to be reported.

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 doesn’t conclusively predict 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. But that’s 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 at -1.17%.

Zacks Rank: Dover currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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.

MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%.

The Zacks Consensus Estimate for MRC Global’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.

Crane Holdings, Co. (CR - Free Report) currently has an Earnings ESP of +6.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.78 per share, suggesting a 2.7% decline from the year-ago quarter’s tally.

The Zacks Consensus Estimate for quarterly revenues is pinned at $800 million, highlighting year-over-year growth of 0.5%. Crane Holdings has a trailing four-quarter earnings surprise of 22.2%, on average. It has a long-term earnings growth of 8.9%.

Terex Corporation (TEX - Free Report) currently has an Earnings ESP of +4.40% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings have gone down 1.2% in the past 30 days and is currently pegged at 85 cents per share. The projection indicates a 16.7% decline from the prior-year quarter’s tally.

The Zacks Consensus Estimate for Terex’ quarterly revenues is pegged at $1.08 billion, which indicates a year-over-year improvement of 3.7%. TEX has a trailing four-quarter earnings surprise of 49%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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