) reached a new 52-week high of $90.91 on Jun 20, up from its
previous high of $90.63. The new high is based on expected benefits
from growth in bookings and orders, acquisitions and positive
outlook for the global semiconductor market.
Illinois-based Dover is a diversified machinery producer with a
market cap of roughly $15 billion. The company's shares closed at
$90.71 at the end of last Friday's trading session, with a
year-to-date return of about 14.3% and a solid one-year return of
roughly 44.6%, outperforming the S&P 500.
The company's long-term estimated earnings per share growth rate is
10.7%. Average volume of shares traded over the last three months
is approximately 985K.
Dover reported first-quarter 2014 adjusted earnings of $1.01 per
share, up 9% from the prior-year quarter. Solid revenue growth,
strength in bookings and momentum in building helped the
Total revenue also rose 7% year on year to $1.9 billion. The
year-over-year rise includes organic growth of 4% and a
contribution of 3% from acquisitions. Revenue growth was led by
Fluids and Engineered Systems, along with solid growth in the
Dover's total bookings increased 5% year over year to $2 billion in
the first quarter, driven by higher bookings in Fluids (20%),
Engineered Systems (11%), and Refrigeration & Food Equipment
(2%) segments. Backlog also grew 7% year over year with a
book-to-bill ratio of 1.0x.
Dover reaffirmed earnings in the range of $4.60-$4.80 per share for
2014. It also reiterates revenue growth of 6%-7% in fiscal 2014
with organic revenue growth of 3%-4%. The company expects full-year
segment margin of around 18%.
In early 2014, Dover acquired Italy-based MS Printing Solutions
S.r.l. The acquisition will help the Printing & Identification
section in expanding beyond the fast moving consumer goods and
industrial markets and enter into the textile market. Last year,
Dover acquired Italy-based Finder for $145 million to strengthen
the position of Pump Solutions Group in the energy market and
enhance its global footprint.
In addition, Dover has completed spin off of the Knowles
Corporation in Feb 2014. This will simplify Dover's business
profile, enabling it to focus on its key growth spaces - Energy,
Fluids, Refrigeration & Food Equipment, and Engineered Systems.
The company has also realigned its businesses into a new segment
structure organized around its key end-markets to better focus on
growth strategies. The company hopes that the new structure will
provide better opportunities to leverage its scale and capitalize
on productivity initiatives.
Further, the outlook for the global semiconductor market is bright.
The World Semiconductor Trade Statistics (WSTS) predicts the global
semiconductor market to grow 6.5% from 2013 to $325 billion in
2014. The worldwide semiconductor market is projected to be up 3.3%
to $336 billion in 2015.
Moreover, Dover will continue to benefit from bookings and orders
growth in the coming quarters.
Dover currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the same industry are
Atlas Copco AB
Blount International Inc.
). All these have a Zacks Rank #2 (Buy).
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DOVER CORP (DOV): Free Stock Analysis Report
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