Back to top

Image: Bigstock

Understanding Dover (DOV) Reliance on International Revenue

Read MoreHide Full Article

Did you analyze how Dover Corporation (DOV - Free Report) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While analyzing DOV's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

For the quarter, the company's total revenue amounted to $2.05 billion, experiencing a decline of 5.9% year over year. Next, we'll explore the breakdown of DOV's international revenue to understand the importance of its overseas business operations.

Decoding DOV's International Revenue Trends

Of the total revenue, $433.47 million came from Europe during the last fiscal quarter, accounting for 21.15%. This represented a surprise of +2.17% as analysts had expected the region to contribute $424.27 million to the total revenue. In comparison, the region contributed $397.29 million, or 21.29%, and $411.38 million, or 18.89%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other Americas contributed $168.11 million in revenue, making up 8.20% of the total revenue. When compared to the consensus estimate of $172.34 million, this meant a surprise of -2.46%. Looking back, Other Americas contributed $159.9 million, or 8.57%, in the previous quarter, and $201.87 million, or 9.27%, in the same quarter of the previous year.

Other International generated $87.74 million in revenues for the company in the last quarter, constituting 4.28% of the total. This represented a surprise of +25.64% compared to the $69.83 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other International accounted for $77.02 million (4.13%), and in the year-ago quarter, it contributed $67.78 million (3.11%) to the total revenue.

Asia accounted for 10.42% of the company's total revenue during the quarter, translating to $213.55 million. Revenues from this region represented a surprise of -0.71%, with Wall Street analysts collectively expecting $215.08 million. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $208.73 million (11.19%) and $200.46 million (9.20%) to the total revenue, respectively.

Prospective Revenues in International Markets

Wall Street analysts expect Dover to report $2.07 billion in total revenue for the current fiscal quarter, indicating an increase of 4.3% from the year-ago quarter. Europe, Other Americas, Other International and Asia are expected to contribute 19.7% ($407.44 million), 8.8% ($182.1 million), 4.8% ($99.56 million) and 10.6% ($219.75 million) to the total revenue, respectively.

For the full year, the company is expected to generate $8.08 billion in total revenue, down 1.3% from the previous year. Revenues from Europe, Other Americas, Other International and Asia are expected to constitute 20.4% ($1.65 billion), 8.5% ($689.7 million), 4.1% ($330.4 million) and 10.7% ($863.28 million) of the total, respectively.

Final Thoughts

Dover's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Dover currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Dover's Stock Price Movement in Recent Times

The stock has witnessed an increase of 1.8% over the past month versus the Zacks S&P 500 composite's an increase of 4.9%. In the same interval, the Zacks Industrial Products sector, to which Dover belongs, has registered an increase of 8.8%. Over the past three months, the company's shares saw an increase of 7.3%, while the S&P 500 increased by 16%. In comparison, the sector experienced an increase of 21.6% during this timeframe.

See More Zacks Research for These Tickers


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


Dover Corporation (DOV) - free report >>

Published in