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Dover (DOV) Beats on Q1 Earnings & Sales, Ups '17 Outlook
April 20, 2017

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Dover Corporation (DOV - Free Report) is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. The company mainly delivers innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.

Dover is likely to benefit from its acquisition strategy, robust hygienic and pharma markets, and recovery in the North American rig count. Further, Dover’s diligent efforts to divest its businesses will help in reducing exposure to cyclical markets and focus on higher margin growth spaces. Improvements in the early cycle upstream oil and gas markets, and strong performance in Printing & Identification are also expected to drive first-quarter results. However, generally weaker capital spending across several industrial end markets and persistent headwinds in its retail refrigeration business are expected to affect Dover’s results.

We have highlighted some of the key stats from this just revealed first-quarter earnings announcement below:

Estimate Trend & Surprise History

Investors should note that the earnings estimate revisions for Dover have moved north ahead of the earnings release. The Zacks Consensus Estimate has gone up 3.3% over the last 30 days and currently stands at 62 cents for the first quarter.

As regards earnings surprise, Dover has outpaced the Zacks Consensus Estimate in two out of the past four quarters, resulting in an average negative surprise of 5.02%.

Dover Corporation Price and EPS Surprise

 

Dover Corporation Price and EPS Surprise | Dover Corporation Quote

Earnings

Dover posted earnings of 70 cents per share in the first quarter of 2017, beating the Zacks Consensus Estimate of 62 cents. Investors should note that these figures take out special items.

Revenue

Dover posted revenues of $1.813 billion, which came ahead of the Zacks Consensus Estimate for revenues of $1.770 billion. Revenues also increased 11.8% year over year, driven by acquisition growth of 12% and organic growth of 4%, partly offset by a 3% impact from dispositions, and an unfavorable impact from foreign exchange of 1%.

Key Stats

Dover’s bookings at the end of the first quarter were worth $2.03 billion, up from $1.68 billion at the end of first-quarter 2016. Backlog also increased to $1.29 billion at the end of the reported quarter from $1.07 billion at the year-ago quarter end.

Dover raised its revenue and EPS guidance for full year 2017 driven by solid first quarter performance, higher expectations in Energy, and overall strong bookings activity. The company now guides earnings per share in range of $4.05 to $4.20, up from the prior band $3.40–$3.60 (excluding one time items) for 2017. The company also expects its full-year revenue growth guidance range of 11% to 13% compared with the previous outlook of 10%–12%. The revenue growth guidance comprised of organic growth of 4% to 6% and acquisition growth of approximately 10%, partially offset by a 2% impact from the dispositions and a 1% headwind from foreign exchange.

Zacks Rank

Currently, Dover has a Zacks Rank #3 (Hold), but that could change following Dover’s earnings report which was just released.

Market Reaction

Dover’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this Dover’s earnings report later!

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