), an industrial conglomerate producing a wide range of specialized
industrial products and manufacturing equipment, is slated to
report second-quarter fiscal 2014 results on Jul 17. In the last
quarter, it posted a negative surprise of 0.98%. Let's see how
things are shaping up for this announcement.
Factors Influencing this Quarter
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. This will help boost revenues in the
Dover expects 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%.
Dover's expansion has been mainly driven by acquisitions. Its
acquisition of Italy-based MS Printing Solutions will help Dover in
expanding beyond the fast moving consumer goods and industrial
markets and enter into the textile market. Moreover, 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 the spin-off of Knowles
Corporation and the sale of its DEK Printing Machines unit. This
will simplify Dover's business profile, enabling it to focus on its
key growth spaces - Energy, Fluids, Refrigeration & Food
Equipment, and Engineered Systems.
Our proven model does not conclusively show that Dover is likely to
beat earnings estimates this quarter. This is because a stock needs
to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
Dover has an earnings ESP of 0.00%. This is because the Most
Accurate estimate stands at $1.28 per share, in line with the Zacks
Zacks Rank #3 (Hold):
Dover has a Zacks Rank #3 which when combined with a 0.00% ESP
makes surprise prediction difficult.
Stocks that Warrant a Look
Here are other companies you may want to consider as our model
shows that these have the right combination of elements to post an
) has an earnings ESP of +0.67% and a Zacks Rank #1 (Strong Buy).
) has an earnings ESP of +0.89% and a Zacks Rank #2 (Buy).
) has an earnings ESP of +1.12% and a Zacks Rank #3 (Hold).
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