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Dover (DOV) Boosts Portfolio With Criteria Labs Acquisition

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Dover Corporation (DOV - Free Report) announced the acquisition of Criteria Labs, Inc., which would be integrated into DOV's Microwave Products Group (“MPG”) within the Engineered Products segment. This move will enable MPG to develop more compact and lightweight designs while maintaining performance and durability. 

Criteria Labs is a pioneer in radio frequency devices and microelectronic engineering solutions for high-reliability applications. The company is primarily based in Austin, TX, where it operates a massive clean room dedicated to space test engineering, assembly and packaging. Criteria Labs' facility in Penrose, CO, specializes in electronic component tape and reel packaging. 

The acquisition of Criteria Labs will improve MPG's ability to achieve stringent Size, Weight and Power (SWaP) specifications. SWap specifications are critical for electronic warfare and communications systems.

The Engineered Products segment accounts for around 23% of Dover’s revenues. In the second quarter of 2024, the Engineered Products segment’s revenues rose 8.7% year over year to $515 million. The reported figure surpassed our expectation of $491 million. The segment’s adjusted EBITDA grew 33.9% year over year to $107.6 million. The figure missed our estimate of $111 million.

DOV reported second-quarter 2024 adjusted earnings per share from continuing operations of $2.36, beating the Zacks Consensus Estimate of $2.21. The bottom line increased 15% year over year.
Total revenues in the second quarter increased 3.7% year over year to $2.18 billion. The top line surpassed the Zacks Consensus Estimate of $2.15 billion. Organic growth was 4.8% in the quarter.

Price Performance

DOV shares have gained 31.6% in the past year compared with the industry’s growth of 24.3%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

Dover currently has a Zacks Rank #3 (Hold). 

Some better-ranked stocks from the Industrial Products sector are Crane Company (CR - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Cintas Corporation (CTAS - Free Report) . These three companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Crane’s 2024 earnings is pegged at $5.07 per share. The consensus estimate for 2024 earnings has moved north by 6% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 11.2%. CR shares have gained 75.2% in a year.

Applied Industrial has an average trailing four-quarter earnings surprise of 7.4%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $10.15 per share, which indicates year-over-year growth of 4.1%. Estimates have been constant in the past 60 days. The company’s shares have gained 36% in a year.

The Zacks Consensus Estimate for Cintas’ 2024 earnings is pegged at $16.64 per share. The consensus estimate for 2024 earnings has moved north by 1% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 4%. CTAS shares have gained 60.4% in a year.

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