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In the last reported quarter, Dover’s earnings and sales missed the Zacks Consensus Estimate. DOV reported year-over-year declines in its top and bottom lines. The company has a trailing four-quarter negative surprise of 1.01%, on average.
The Zacks Consensus Estimate for DOV’s third-quarter 2023 earnings per share is pegged at $2.35, suggesting growth of 4% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.2 billion, indicating an increase of 2.4% from the prior-year quarter’s reported figure.
Price Performance
Dover’s shares have lost 17.5% in the past year compared with industry’s growth of 20.5%.
Image Source: Zacks Investment Research
Factors at Play
DOV has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited its third-quarter performance. Gains from the recent acquisitions are also likely to have contributed to Dover’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the quarter under review.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the September-end quarter top-line results. We expect organic sales growth of 3% for the quarter. Improved price-cost dynamics and volume are likely to have offset input shortages. However, our model predicts currency translation to have an unfavorable impact of 0.2% on the segment’s sales.
The Zacks Consensus Estimate for the segment’s third-quarter 2023 revenues is pegged at $546.5 million, suggesting growth of 5.8% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $102.9 million.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. The Zacks Consensus Estimate for the segment’s revenues is pegged at $472 million for the quarter to be reported, suggesting growth of 1.7% from the year-earlier actuals.
The consensus estimate for the segment’s adjusted EBITDA is pegged at $100.3 million. Margins are likely to have gained from a positive product mix and the effects of decisive actions to reduce costs based on above-ground fueling.
However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays in Europe/Asia. Our model predicts year-over-year organic sales to fall 5.5% in the quarter. We expect unfavorable impacts of currency translation to weigh 0.8% year over year on the segment’s results.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers and spares, as well as continued strength in consumables. The Zacks Consensus Estimate for the segment’s revenues is pinned at $286 million, suggesting an increase from the $282 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is estimated to be $72.1 million. We expect organic sales of the segment to grow 4% year over year in the quarter.
Robust demand for industrial pumps and polymer processing activity is likely to have aided the Pumps & Process Solutions segment’s third-quarter performance. Our model predicts year-over-year growth of 2.8% for the segment’s organic sales. We expect currency translation to have a year-over-year negative impact of 0.1% in the quarter.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $447 million, suggesting growth of 3.1% from the prior-year quarter’s reported figure. The consensus mark for the segment’s second-quarter adjusted EBITDA is pegged at $144.8 million.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s third-quarter performance. We anticipate the segment’s organic sales to grow 8.1% year over year in the to-be-reported quarter.
Our model predicts currency translation to have a year-over-year negative impact of 0.9% on the segment’s top line. Margins are likely to have gained on higher volumes. However, higher costs and impacts from currency translations are likely to have partially offset the tailwind.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $471 million, implying 1.9% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $85.8 million.
Here’s What Our Zacks Model Predicts
Our model predicts an earnings beat for Dover this season. 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. That is precisely the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of +0.23%.
Zacks Rank: Dover currently carries a Zacks Rank # 3.
Other Stocks to Consider
Here are some Other stocks with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for ESAB’s third-quarter earnings is pegged at 92 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 13.6%.
H&E Equipment Services, Inc. (HEES - Free Report) , expected to release earnings on Oct 10, has an Earnings ESP of +14.79% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for HEES’ earnings for the third quarter is pegged at $1.31 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 24.1%.
Ingersoll Rand Inc. (IR - Free Report) , expected to release earnings on Nov 1, has an Earnings ESP of +1.00%. IR currently carries a Zacks Rank of 3.
The consensus estimate for Ingersoll Rand’s earnings for the third quarter is pegged at 70 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.9%.
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Dover (DOV) to Report Q3 Earnings: What's in the Offing?
Dover Corporation (DOV - Free Report) will release third-quarter 2023 results on Oct 24, before the opening bell.
Q2 Results
In the last reported quarter, Dover’s earnings and sales missed the Zacks Consensus Estimate. DOV reported year-over-year declines in its top and bottom lines. The company has a trailing four-quarter negative surprise of 1.01%, on average.
Dover Corporation Price and EPS Surprise
Dover Corporation price-eps-surprise | Dover Corporation Quote
Q3 Estimates
The Zacks Consensus Estimate for DOV’s third-quarter 2023 earnings per share is pegged at $2.35, suggesting growth of 4% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.2 billion, indicating an increase of 2.4% from the prior-year quarter’s reported figure.
Price Performance
Dover’s shares have lost 17.5% in the past year compared with industry’s growth of 20.5%.
Image Source: Zacks Investment Research
Factors at Play
DOV has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited its third-quarter performance. Gains from the recent acquisitions are also likely to have contributed to Dover’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the quarter under review.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the September-end quarter top-line results. We expect organic sales growth of 3% for the quarter. Improved price-cost dynamics and volume are likely to have offset input shortages. However, our model predicts currency translation to have an unfavorable impact of 0.2% on the segment’s sales.
The Zacks Consensus Estimate for the segment’s third-quarter 2023 revenues is pegged at $546.5 million, suggesting growth of 5.8% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $102.9 million.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. The Zacks Consensus Estimate for the segment’s revenues is pegged at $472 million for the quarter to be reported, suggesting growth of 1.7% from the year-earlier actuals.
The consensus estimate for the segment’s adjusted EBITDA is pegged at $100.3 million. Margins are likely to have gained from a positive product mix and the effects of decisive actions to reduce costs based on above-ground fueling.
However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays in Europe/Asia. Our model predicts year-over-year organic sales to fall 5.5% in the quarter. We expect unfavorable impacts of currency translation to weigh 0.8% year over year on the segment’s results.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers and spares, as well as continued strength in consumables. The Zacks Consensus Estimate for the segment’s revenues is pinned at $286 million, suggesting an increase from the $282 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is estimated to be $72.1 million. We expect organic sales of the segment to grow 4% year over year in the quarter.
Robust demand for industrial pumps and polymer processing activity is likely to have aided the Pumps & Process Solutions segment’s third-quarter performance. Our model predicts year-over-year growth of 2.8% for the segment’s organic sales. We expect currency translation to have a year-over-year negative impact of 0.1% in the quarter.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $447 million, suggesting growth of 3.1% from the prior-year quarter’s reported figure. The consensus mark for the segment’s second-quarter adjusted EBITDA is pegged at $144.8 million.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s third-quarter performance. We anticipate the segment’s organic sales to grow 8.1% year over year in the to-be-reported quarter.
Our model predicts currency translation to have a year-over-year negative impact of 0.9% on the segment’s top line. Margins are likely to have gained on higher volumes. However, higher costs and impacts from currency translations are likely to have partially offset the tailwind.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $471 million, implying 1.9% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $85.8 million.
Here’s What Our Zacks Model Predicts
Our model predicts an earnings beat for Dover this season. 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. That is precisely the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of +0.23%.
Zacks Rank: Dover currently carries a Zacks Rank # 3.
Other Stocks to Consider
Here are some Other stocks with the right combination of elements to post an earnings beat in their upcoming releases.
ESAB Corporation (ESAB - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.81% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ESAB’s third-quarter earnings is pegged at 92 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 13.6%.
H&E Equipment Services, Inc. (HEES - Free Report) , expected to release earnings on Oct 10, has an Earnings ESP of +14.79% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for HEES’ earnings for the third quarter is pegged at $1.31 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 24.1%.
Ingersoll Rand Inc. (IR - Free Report) , expected to release earnings on Nov 1, has an Earnings ESP of +1.00%. IR currently carries a Zacks Rank of 3.
The consensus estimate for Ingersoll Rand’s earnings for the third quarter is pegged at 70 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.