Back to top

Image: Bigstock

Dover (DOV) Beats Q2 Earnings & Revenues on Strong Demand

Read MoreHide Full Article

Dover Corporation (DOV - Free Report) is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. The company reported adjusted earnings of $1.30 per share in second-quarter 2018, beating the Zacks Consensus Estimate of $1.21. Earnings also improved 21% year over year mainly driven by strong overall demand environment.

Revenue: Dover posted revenues of $1.80 billion, which came ahead of the Zacks Consensus Estimate for revenues of $1.78 billion. Revenues also increased 3% year over year, driven by organic growth of 3% and a favorable impact from foreign exchange of 2%, partly by a net 2% impact from previous acquisitions and dispositions. Strong overall demand in the second quarter drove revenue increases of 4% in Engineered Systems and 10% in Fluids, offsetting forecasted demand weakness in Refrigeration & Food Equipment.

Bookings: Dover’s bookings at the end of the second quarter were worth $1.86 billion, up from $1.77 billion at the end of second-quarter 2017. Backlog also increased to $1.38 billion at the end of the reported quarter from $1.26 billion at the year-ago quarter end.

Dover Corporation Price and EPS Surprise


Dover Corporation Price and EPS Surprise | Dover Corporation Quote

Outlook:  Dover revised its adjusted earnings per share guidance for full-year 2018 to $4.75-$4.85. Mid-point of the guidance range reflects an increase of 16% over the prior year. This guidance is based on full year revenue growth of 2-3% comprising an organic growth of 3-4%, acquisition growth of 1% and a favorable impact from foreign exchange of 1%, partially offset by a 3% impact from dispositions.

Estimate Trend & Surprise History

Investors should note that the earnings estimate revisions for Dover for the second quarter have moved south ahead of the earnings release. The Zacks Consensus Estimate currently stands at $1.21 for the quarter.

As regards earnings surprise, Dover has outpaced the Zacks Consensus Estimate in each of the past four quarters, with an average beat of 4.69%.

Zacks Rank: Currently, Dover has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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 earnings report later!

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

See More Zacks Research for These Tickers

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

Dover Corporation (DOV) - free report >>

Published in