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Dover (DOV) Earnings Miss Estimates in Q2, Revenues Dip Y/Y
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Dover Corporation (DOV - Free Report) has reported second-quarter 2023 adjusted earnings per share (EPS) from continuing operations of $2.05, missing the Zacks Consensus Estimate of $2.21. The bottom line decreased 4% year over year.
On a reported basis, Dover has delivered EPS of $1.72 in the quarter, down 14% year over year.
Total revenues in the second quarter fell 2.7% year over year to $2,100 million. The top line missed the Zacks Consensus Estimate of $2,176 million. Transient production and shipment difficulties in the company's automotive services sector, induced by an ERP system update, offset the outperformance in the company's high-growth industries.
Dover Corporation Price, Consensus and EPS Surprise
Cost of sales fell 2.6% year over year to $1,341 million in the reported quarter. Gross profit was down 2.9% year over year to $759 million. The gross margin was 36.1% compared with the year-ago quarter’s 36.2%.
Selling, general and administrative expenses were up 5.9% to $434 million from the prior-year quarter . Adjusted EBITDA fell 3.4% year over year to $461 million. The adjusted EBITDA margin was 21.9% in the quarter compared with the prior-year quarter’s 22.1%.
Segmental Performance
The Engineered Products segment’s revenues were down 7.9% year over year to $474 million in the quarter. The reported figure fell short of our expectation of $528 million. The segment’s adjusted EBITDA fell 9.1% year over year to $80 million. The figure missed our estimate of $106 million.
The Clean Energy & Fueling segment’s revenues were $441 million compared with the prior-year quarter’s $494 million. The figure missed our estimate of $513 million. The segment’s adjusted EBITDA was $91 million, down from the prior-year quarter’s $106 million. The figure topped our estimate of $103 million.
The Imaging & Identification segment’s revenues moved down 1.5% year over year to $272 million. The reported figure fell short of our expectation of $277 million. The segment’s adjusted EBITDA was $65 million, up from the year-ago quarter’s $64.8 million. The figure missed our estimate of $72 million.
The Pumps & Process Solutions segment’s revenues increased 5.4% year over year to $465 million in the second quarter. The figure surpassed our estimate of $426 million. The adjusted EBITDA of the segment totaled $141 million compared with the year-ago quarter’s $148 million. The reported figure was lower than our expectation of $148 million.
The Climate & Sustainability Technologies segment’s revenues increased to $449 million from the $434 million reported in the year-earlier quarter. We predicted revenues of $441 million for this segment. The segment’s adjusted EBITDA totaled $83 million compared with $71 million in second-quarter 2022. The figure missed our estimate of $74 million.
Bookings and Backlog
Dover’s bookings at the end of the second quarter were worth $1.93 billion compared with the prior-year quarter’s $2.11 billion. Total booking fell short of our estimate of $2.06 billion.
Backlog fell 15% year over year to $2.81 billion at the end of the reported quarter. Our model projected a backlog worth $3.24 billion in the second quarter of 2023.
Financial Position
The company had a free cash inflow of $155 million in the second quarter compared with the year-ago quarter’s $128 million. Cash flow from operations amounted to $195 million in the quarter under review compared with the prior-year quarter’s $179 million.
Outlook
The company expects to generate an adjusted EPS of $8.85-$9.00 for 2023. It anticipates organic revenue growth of 2-4% for the year.
Price Performance
Dover’s shares have gained 20.1% in the past year compared with the industry’s growth of 25.2%.
Worthington Industries has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $5.65 per share. The consensus estimate for 2023 earnings has moved north by 22.6% in the past 60 days. Its shares gained 55% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 256.3%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at $1.12 per share. The consensus estimate for 2023 earnings has moved 7.8% north in the past 60 days. MTW’s shares gained 68.8% in the last year.
The Zacks Consensus Estimate for Grainger’s 2023 earnings per share is pegged at $35.86, up 1% in the past 60 days. It has a trailing four-quarter average earnings surprise of 9.1%. GWW gained 59.5% in the last year.
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Dover (DOV) Earnings Miss Estimates in Q2, Revenues Dip Y/Y
Dover Corporation (DOV - Free Report) has reported second-quarter 2023 adjusted earnings per share (EPS) from continuing operations of $2.05, missing the Zacks Consensus Estimate of $2.21. The bottom line decreased 4% year over year.
On a reported basis, Dover has delivered EPS of $1.72 in the quarter, down 14% year over year.
Total revenues in the second quarter fell 2.7% year over year to $2,100 million. The top line missed the Zacks Consensus Estimate of $2,176 million. Transient production and shipment difficulties in the company's automotive services sector, induced by an ERP system update, offset the outperformance in the company's high-growth industries.
Dover Corporation Price, Consensus and EPS Surprise
Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote
Costs and Margins
Cost of sales fell 2.6% year over year to $1,341 million in the reported quarter. Gross profit was down 2.9% year over year to $759 million. The gross margin was 36.1% compared with the year-ago quarter’s 36.2%.
Selling, general and administrative expenses were up 5.9% to $434 million from the prior-year quarter . Adjusted EBITDA fell 3.4% year over year to $461 million. The adjusted EBITDA margin was 21.9% in the quarter compared with the prior-year quarter’s 22.1%.
Segmental Performance
The Engineered Products segment’s revenues were down 7.9% year over year to $474 million in the quarter. The reported figure fell short of our expectation of $528 million. The segment’s adjusted EBITDA fell 9.1% year over year to $80 million. The figure missed our estimate of $106 million.
The Clean Energy & Fueling segment’s revenues were $441 million compared with the prior-year quarter’s $494 million. The figure missed our estimate of $513 million. The segment’s adjusted EBITDA was $91 million, down from the prior-year quarter’s $106 million. The figure topped our estimate of $103 million.
The Imaging & Identification segment’s revenues moved down 1.5% year over year to $272 million. The reported figure fell short of our expectation of $277 million. The segment’s adjusted EBITDA was $65 million, up from the year-ago quarter’s $64.8 million. The figure missed our estimate of $72 million.
The Pumps & Process Solutions segment’s revenues increased 5.4% year over year to $465 million in the second quarter. The figure surpassed our estimate of $426 million. The adjusted EBITDA of the segment totaled $141 million compared with the year-ago quarter’s $148 million. The reported figure was lower than our expectation of $148 million.
The Climate & Sustainability Technologies segment’s revenues increased to $449 million from the $434 million reported in the year-earlier quarter. We predicted revenues of $441 million for this segment. The segment’s adjusted EBITDA totaled $83 million compared with $71 million in second-quarter 2022. The figure missed our estimate of $74 million.
Bookings and Backlog
Dover’s bookings at the end of the second quarter were worth $1.93 billion compared with the prior-year quarter’s $2.11 billion. Total booking fell short of our estimate of $2.06 billion.
Backlog fell 15% year over year to $2.81 billion at the end of the reported quarter. Our model projected a backlog worth $3.24 billion in the second quarter of 2023.
Financial Position
The company had a free cash inflow of $155 million in the second quarter compared with the year-ago quarter’s $128 million. Cash flow from operations amounted to $195 million in the quarter under review compared with the prior-year quarter’s $179 million.
Outlook
The company expects to generate an adjusted EPS of $8.85-$9.00 for 2023. It anticipates organic revenue growth of 2-4% for the year.
Price Performance
Dover’s shares have gained 20.1% in the past year compared with the industry’s growth of 25.2%.
Image Source: Zacks Investment Research
Zacks Rank & 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 W.W. Grainger, Inc. (GWW - Free Report) . WOR and MTW sport a Zacks Rank #1 (Strong Buy) at present, and GWW 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 14.9%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $5.65 per share. The consensus estimate for 2023 earnings has moved north by 22.6% in the past 60 days. Its shares gained 55% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 256.3%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at $1.12 per share. The consensus estimate for 2023 earnings has moved 7.8% north in the past 60 days. MTW’s shares gained 68.8% in the last year.
The Zacks Consensus Estimate for Grainger’s 2023 earnings per share is pegged at $35.86, up 1% in the past 60 days. It has a trailing four-quarter average earnings surprise of 9.1%. GWW gained 59.5% in the last year.