We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors Setting the Tone for Dover's (DOV) Q3 Earnings
Read MoreHide Full Article
Dover Corporation (DOV - Free Report) is set to release third-quarter 2019 results, before the opening bell on Oct 17. The company’s results for the Sep-end quarter are likely to reflect benefit from solid backlog, improved performance in the Engineered Systems and Fluids segments, cost-reduction initiatives, as well as restructuring programs.
In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate. The company delivered a positive earnings surprise in all of the trailing four quarters, the average beat being 6.91%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Dover’s third-quarter 2019 results are likely to reflect benefits from solid order backlog. Impressive performance of the Engineered Systems and Fluids segments, benefits from cost-containment actions, as well as footprint optimization projects and retail refrigeration are expected to have mitigated the impact of weak demand in the Refrigeration & Food Equipment segment.
The Zacks Consensus Estimate for Dover’s to-be-reported quarter’s earnings is currently pinned at $1.53, reflecting year-over-year growth of 12.5%. The Zacks Consensus Estimate for total sales of $1,815 million for the quarter indicates an improvement of 3.9% from the prior-year quarter.
Coming to the segments, the Zacks Consensus Estimate for Dover’s Fluids segment net sales is pegged at $725 million for the quarter, representing an expected year-over-year increase of 5%. The company completed the acquisition of All-Flo Pump Co in the June-end quarter, which is likely to have aided the Fluids segment margins in the July-September quarter.
The Zacks Consensus Estimate for the Engineered Systems segment’s revenues is currently pinned at $702 million, a projected increase of 4.5% from the prior-year quarter’s $672 million.
Moreover, the Zacks Consensus Estimate for the Refrigeration and Food Equipment segment’s net sales is $395 million for the quarter under review, suggesting year-over-year growth of 2.3%. Nevertheless, the segment’s third-quarter revenues and margin will likely reflect the impact of dismal retail refrigeration markets, and lower shipment in Asia.
The company has executed restructuring programs to better align costs and operations with the current market conditions through targeted facility consolidations, headcount reduction and other measures. These actions are likely to have aided the company’s third-quarter margins.
Our proven model does not conclusively show that Dover is likely to beat on earnings in this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Earnings ESP: The Earnings ESP for Dover is -0.66%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.52 and $1.53, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dover currently carries a Zacks Rank of 3, which increases the predictive power of ESP. But we also need to have a positive earnings ESP to be sure of an earnings beat.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
In a year’s time, shares of Dover have gained 18.7%, outperforming the industry’s growth of 9.8%.
Stocks to Consider
Here are a few Industrial Products stocks which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Northwest Pipe Company (NWPX - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +19.23%.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +2.40% and holds a Zacks Rank of 3, at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Factors Setting the Tone for Dover's (DOV) Q3 Earnings
Dover Corporation (DOV - Free Report) is set to release third-quarter 2019 results, before the opening bell on Oct 17. The company’s results for the Sep-end quarter are likely to reflect benefit from solid backlog, improved performance in the Engineered Systems and Fluids segments, cost-reduction initiatives, as well as restructuring programs.
In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate. The company delivered a positive earnings surprise in all of the trailing four quarters, the average beat being 6.91%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Dover’s third-quarter 2019 results are likely to reflect benefits from solid order backlog. Impressive performance of the Engineered Systems and Fluids segments, benefits from cost-containment actions, as well as footprint optimization projects and retail refrigeration are expected to have mitigated the impact of weak demand in the Refrigeration & Food Equipment segment.
The Zacks Consensus Estimate for Dover’s to-be-reported quarter’s earnings is currently pinned at $1.53, reflecting year-over-year growth of 12.5%. The Zacks Consensus Estimate for total sales of $1,815 million for the quarter indicates an improvement of 3.9% from the prior-year quarter.
Coming to the segments, the Zacks Consensus Estimate for Dover’s Fluids segment net sales is pegged at $725 million for the quarter, representing an expected year-over-year increase of 5%. The company completed the acquisition of All-Flo Pump Co in the June-end quarter, which is likely to have aided the Fluids segment margins in the July-September quarter.
The Zacks Consensus Estimate for the Engineered Systems segment’s revenues is currently pinned at $702 million, a projected increase of 4.5% from the prior-year quarter’s $672 million.
Moreover, the Zacks Consensus Estimate for the Refrigeration and Food Equipment segment’s net sales is $395 million for the quarter under review, suggesting year-over-year growth of 2.3%. Nevertheless, the segment’s third-quarter revenues and margin will likely reflect the impact of dismal retail refrigeration markets, and lower shipment in Asia.
The company has executed restructuring programs to better align costs and operations with the current market conditions through targeted facility consolidations, headcount reduction and other measures. These actions are likely to have aided the company’s third-quarter margins.
Dover Corporation Price and EPS Surprise
Dover Corporation price-eps-surprise | Dover Corporation Quote
Earnings Whispers
Our proven model does not conclusively show that Dover is likely to beat on earnings in this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Earnings ESP: The Earnings ESP for Dover is -0.66%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.52 and $1.53, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dover currently carries a Zacks Rank of 3, which increases the predictive power of ESP. But we also need to have a positive earnings ESP to be sure of an earnings beat.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
In a year’s time, shares of Dover have gained 18.7%, outperforming the industry’s growth of 9.8%.
Stocks to Consider
Here are a few Industrial Products stocks which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Cintas Corporation (CTAS - Free Report) has an Earnings ESP of +0.16% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northwest Pipe Company (NWPX - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +19.23%.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +2.40% and holds a Zacks Rank of 3, at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>