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Dover (DOV) Miss Q4 Earnings, Sales Tops, Affirms View

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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's acquisition strategy, supply chain rationalization, improved capital allocation discipline and restructuring actions remain tailwinds. Further, recovery in drilling and artificial lift markets, along with consistent solid activity in Printing & Identification platform and recovery in North American upstream oil & gas markets will help drive Dover's results. However, generally weaker capital spending across several industrial end markets, continued weakness in longer cycle oil and gas exposed markets, and persistent headwinds in its retail refrigeration business related to production inefficiencies are expected to affect Dover's results.

We have highlighted some of the key stats from this just revealed fourth-quarter earnings announcement below:

Estimate Trend & Surprise History

Investors should note that the earnings estimate revisions for Dover have moved north ahead of the earnings release. The Zacks Consensus Estimate has gone up 12% over the last 30 days and currently stands at 84 cents for the fourth quarter.

As regards earnings surprise, Dover has outpaced the Zacks Consensus Estimate in three out of the past four quarters, resulting in an average positive surprise of 0.85%.

Dover Corporation Price and EPS Surprise

Dover Corporation Price and EPS Surprise | Dover Corporation Quote

Earnings

Dover missed on fourth quarter 2016 earnings. The Zacks Consensus Estimate called for EPS of 84 cents, while the company reported EPS of 71 cents. Investors should note that these figures take out special items.

Revenue

Dover posted revenues of $1.778 billion, which came ahead of the Zacks Consensus Estimate for revenues of $1.703 billion. Revenues also increased 8% year over year, driven by acquisition growth of 11%, partly offset by an organic revenue decline of 2%, a 3% impact from dispositions, and an unfavorable impact from foreign exchange of 1%.

Key Stats

Dover's bookings at the end of fourth quarter were worth $6.80 billion, in line with the end of fourth-quarter 2015. Backlog declined to $1.08 billion at the end of the reported quarter from $1 billion at the year-ago quarter end.

Dover reaffirms its earnings per share guidance range of $3.40-$3.60 (excluding one time items) for full-year 2017. The company also restated its full-year revenue growth guidance range of 10%-12%, including organic growth of 3% to 5% and acquisition growth of approximately 10%, partially offset by a 1% impact from dispositions and a 2% headwind from foreign exchange.

Zacks Rank

Currently, Dover has a Zacks Rank #3 (Hold), 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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