Back to top

Image: Bigstock

Dover (DOV) to Report Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

Dover Corporation (DOV - Free Report) will release fourth-quarter 2023 results on Feb 1, before the opening bell.

Q3 Results

In the last reported quarter, Dover’s earnings were in line with the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in its bottom line, whereas the top line remained flat year over year. The company has a trailing four-quarter negative surprise of 1.69%, on average.

Dover Corporation Price and EPS Surprise

Dover Corporation Price and EPS Surprise

Dover Corporation price-eps-surprise | Dover Corporation Quote

Q4 Estimates

The Zacks Consensus Estimate for DOV’s fourth-quarter 2023 earnings per share is pegged at $2.45, suggesting growth of 13.4% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.18 billion, indicating an increase of 1.9% from the prior-year quarter’s reported figure.

Price Performance

Dover’s shares have gained 6.2% in the past year compared with industry’s growth of 16.6%.

Zacks Investment Research
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 fourth-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 December-end quarter top-line results. We expect organic sales growth of 12.3% 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 1.3% on the segment’s sales.

The Zacks Consensus Estimate for the segment’s fourth-quarter 2023 revenues is pegged at $583 million, suggesting growth of 11.1% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $124.1 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. However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays in Europe/Asia. The Zacks Consensus Estimate for the segment’s revenues is pegged at $456 million for the quarter to be reported, suggesting a decline of 1.2% from the year-earlier actual.

The consensus estimate for the segment’s adjusted EBITDA is pegged at $97.2 million. We expect unfavorable impacts of currency translation to weigh 1.3% 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 $279 million, suggesting a decrease from the $292 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pegged at $75.4 million. We expect organic sales of the segment to fall 1.6% 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 fourth-quarter performance. Our model predicts year-over-year growth of 0.1% for the segment’s organic sales. We expect currency translation to have a year-over-year negative impact of 1.2% in the quarter.

The Zacks Consensus Estimate for the segment’s revenues is pegged at $422 million, suggesting growth of 1% from the prior-year quarter’s reported figure. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $116.3 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 fourth-quarter performance. Margins are likely to have gained on higher volumes. However, higher costs and impacts of currency translations are likely to have partially offset the tailwind. We anticipate the segment’s organic sales to fall 0.3% year over year in the to-be-reported quarter. Our model predicts currency translation to have a year-over-year negative impact of 0.4% on the segment’s top line.

The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $439 million, implying a 0.6% fall from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $68.8 million.

Here’s What Zacks Model Predicts

Our proven model doesn’t conclusively predict 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. But that is not the case here, as you can see below.

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 -1.98%.

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

Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Kubota Corporation (KUBTY - Free Report) , scheduled to release earnings on Feb 13, has an Earnings ESP of +2.64%.

The Zacks Consensus Estimate for KUBTY’s earnings for the fourth quarter is pegged at 72 cents per share. It currently flaunts a Zacks Rank of 1. The consensus estimate for the quarterly earnings has moved 7% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 31.2%.

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

Reliance Steel & Aluminum Co. (RS - Free Report) , set to release earnings on Feb 15, has an Earnings ESP of +3.35% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for RS’ fourth-quarter earnings is pegged at $3.88 per share. Earnings estimates have been unchanged in the past 60 days. The company has an average trailing four-quarter earnings surprise of 10.6%.

Ingersoll Rand Inc. (IR - Free Report) , scheduled to release earnings on Feb 15, currently has an Earnings ESP of +0.98% and a Zacks Rank of 3.

The consensus estimate for Ingersoll Rand’s earnings for the fourth quarter is pegged at 76 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 16.1%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dover Corporation (DOV) - free report >>

Reliance, Inc. (RS) - free report >>

Ingersoll Rand Inc. (IR) - free report >>

Kubota Corp. (KUBTY) - free report >>

Published in