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DOV

Dover (DOV) Beats on Q3 Earnings, Revenues Lag

Dover CorporationDOV is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. The company mainly delivers innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.

Dover witnessed significant headwinds in energy-related markets during first half of 2015 similar to the other players in the Industrial Products sector. The company slashed its full-year 2015 outlook citing continued weak fundamentals in the North American oil & gas markets. Dover also remains cautious about reduced activity related to customer capital spending in retail refrigeration, oil & gas related pump markets and in industrial businesses within Engineered Systems.

We have highlighted some of the key stats from this just revealed announcement below:

Estimate Trend & Surprise History

Investors should note that the earnings estimate revisions for Dover has been revised downward during last 30 days.

Dover has a varied earnings surprise history. Overall, the company posted a positive average earnings surprise of 1.25% in the last four trailing quarters.

Earnings

Dover posted earnings of $1.14 per share in the third quarter of 2015, beating the Zacks Consensus Estimate of $1.06. However, earnings declined 13% year over year. Investors should note that these figures take out special items.

Revenue

Dover posted revenues of $1.79 billion, fell short the Zacks Consensus Estimate for revenues of 1.81 billion. Revenues declined 11% year over year during third quarter.

Key Stats

Dover's bookings at the end of third quarter were worth $1.70 billion, which fell roughly 11.6% from $1.92 billion at the end of third-quarter 2014. Backlog also declined to $1.04 billion at the end of the reported quarter from $1.30 billion at the year-ago quarter end.

Dover lowered its 2015 guidance due to sluggish global market conditions. The company now expects full-year revenue to decline 10% to 11%, a two point reduction from the previous guidance of 8% to 9%. Within this revenue forecast, organic growth is anticipated to decline 9% to 10%, completed acquisitions will provide approximately 3% growth and foreign exchange is expected to be a 4% headwind. In total, full year adjusted earnings per share is expected to be in the range of $3.73 to $3.80, slashed from the prior outlook of $3.75 to $3.90.

Zacks Rank

Currently, Dover has a Zacks Rank #4 (Sell), but that could change following Dover's earnings report which was just released.

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's earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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