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Dover (DOV) Earnings Meet Estimates in Q1, Increase Y/Y

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Dover Corporation (DOV - Free Report) reported first-quarter 2023 adjusted earnings per share (EPS) from continuing operations of $1.94, in line with the Zacks Consensus Estimate. The bottom line increased 2% year over year.

On a reported basis, Dover delivered EPS of $1.63 in the quarter, up 4% year over year.

Total revenues in the first quarter increased 1.3% year over year to $2,079 million. The top line surpassed the Zacks Consensus Estimate of $2,071 million. Strong demand and recovery in global supply chains drove top-line growth across the majority of the company’s businesses in the quarter. Solid new order intake also aided growth.

Costs and Margins

Cost of sales rose 1.8% year over year to $1,332 million in the reported quarter. Gross profit increased 0.5% year over year to $747 million. The gross margin was 35.9% compared with the year-ago quarter’s 36.2%.

Selling, general and administrative expenses were down 2.7% to $432 million from the prior-year quarter. Adjusted EBITDA increased 2.7% year over year to $450 million. The adjusted EBITDA margin was 21.6% in the quarter compared with the prior-year quarter’s 21.3%.

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 2% year over year to $498 million in the quarter. The segment’s adjusted EBITDA increased 16.7% year over year to $91 million.

The Clean Energy & Fueling segment’s revenues were $431 million compared with the prior-year quarter’s $458 million. The segment’s adjusted EBITDA was $80.6 million, down from the prior-year quarter’s $81.4 million.

The Imaging & Identification segment’s revenues moved up 4% year over year to $283 million. The segment’s adjusted EBITDA improved 15.6% year over year to $72 million.

The Pumps & Process Solutions segment’s revenues decreased 4.8% year over year to $414 million in the first quarter. The adjusted EBITDA in the segment totaled $126 million compared with the year-ago quarter’s $157 million.

The Climate & Sustainability Technologies segment’s revenues increased to $455 million from $399 million reported in the year-earlier quarter. The segment’s adjusted EBITDA totaled $80 million compared with $60 million in first-quarter 2022.

Bookings and Backlog

Dover’s bookings at the end of the first quarter were worth $2.04 billion compared with the prior-year quarter’s $2.25 billion. Backlog fell 13.2% year over year to $2.97 billion at the end of the reported quarter.

Financial Position

The company had a free cash flow of $193 million in the first quarter against the cash outflow of $27 million in the year-ago quarter. Cash flow from operations amounted to $241 million in the quarter under review compared with the prior-year quarter’s $24 million.

Outlook

The company expects to generate adjusted EPS of $8.85-$9.05 for 2023. It anticipates organic revenue growth of 3-5% for the year.

Price Performance

Dover’s shares have gained 4.6% in the past year compared with the industry’s growth of 11.8%.

 

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 from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , The Manitowoc Company, Inc. (MTW - Free Report) and OI Glass Inc. (OI - Free Report) . WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.

Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.

The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.

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