) reported its third-quarter 2012 earnings of $1.30 per share,
beating the Zacks Consensus Estimate of $1.27. Results inched up
10.2% from the prior-year quarter's earnings of $1.18 per share.
COOPER INDS PLC (CBE): Free Stock Analysis
DOVER CORP (DOV): Free Stock Analysis Report
WEATHERFORD INT (WFT): Free Stock Analysis
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On the reported basis, earnings were $1.32 per share compared with
the prior-year quarter's earnings of $1.19. The third-quarter 2012
included a tax benefit of 2 cents while the year-ago quarter
included a tax benefit of 1 cent.
Total revenues were $2.209 billion, improving 3% year over year,
missing the Zacks Consensus Estimate of $2.249 billion. The revenue
increase included an organic growth of 1% and increase from
acquisitions by 4%, partially offset by negative impacts of 2% from
Cost of sales increased 2.2% to $1.36 billion versus $1.33 billion
in the year-ago quarter. Gross profit of the company went up 5%
year over year to $846.9 million. Consequently, gross margin
expanded 60 basis points (bps) to 38.3% in the quarter.
Selling and administrative expenses remained flat at $476.6 million
in the quarter. Operating profit soared 12.4% to $370.4 million.
Operating margin was 16.8%, expanding 140 bps year over year.
Revenues in the
segment dropped 2.2% to $396.5 million. The segment's income,
however, rose 19.2% to $63.7 million, and operating margin jumped
290 bps year over year to 16.1%.
revenues increased 10.1% to $562.3 million in the quarter. The
segment's operating income shot up 11% to $139 million. The
segment's operating margin expanded 20 bps year over year to 24.7%
in the reported quarter.
Revenues in the
segment increased 8.4% to $892.1 million in the quarter. The
segment's income surged 14.9% to $144.2 million. Operating margin
of the segment expanded 100 bps year over year to 16.2%.
Printing & Identification
segment fell 10.6% to $358.1 million from $400.5 million in the
prior-year quarter. The segment reported operating income of $51.4
million, down 13.5% from $59.4 million in last year's quarter,
contracting the operating margin by 40 bps year over year to 14.4%.
Bookings and Backlog
The company ended the third quarter with $2.079 billion worth of
bookings versus $2.068 billion at the end of the third quarter
2011. Backlog of the company increased to $1.540 billion at end of
the reported quarter from $1.449 billion in third quarter 2011.
Free Cash Flow
Dover generated free cash flow of $229.7 million in the reported
quarter compared with $311.6 million in the year-ago quarter.
Outlook for 2012
Dover expects revenue growth of 7% down from the range of 8%-10%.
Organic revenue growth will contribute 3% while acquisitions will
add 4% to the revenue growth. It expects earnings to lie in the
band of $4.55-$4.65 down from the previous range of $4.70-$4.85.
Dover is experiencing revenue challenges in the Handset and
Electronic markets. Moreover, the uncertainty in global economic
condition adds to the woe.
Dover faces stiff competition from
Cooper Industries plc
Weatherford International Ltd.
) among others. The company retains a short-term Zacks #4 Rank
(Sell). We have a long-term Neutral recommendation on the stock.