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Dover (DOV) to Report Q4 Earnings: What's in the Cards?

Industrial products maker, Dover CorporationDOV is scheduled to report fourth-quarter 2016 results before the opening bell on Jan 26. In the last reported quarter, adjusted earnings outperformed the Zacks Consensus Estimate by 5 cents. Dover has beaten estimates in three out of the trailing four quarters with an average positive earnings surprise of 0.85%. Let's see how things are shaping up for this announcement.

Key Factors in the Quarter

Recovery in drilling and artificial lift markets, along with consistent solid activity in Printing & Identification platform, synergies from Wayne acquisition and recovery in North American upstream oil & gas markets will help drive Dover's results.

Improvements in early cycle upstream oil and gas markets, strong performance in Printing & Identification and continued sequential growth in Fluids are expected to drive fourth-quarter results. However, the Refrigeration & Food Equipment segment is likely to witness a seasonal decline.

Dover Corp. Price and Consensus

Dover Corp. Price and Consensus | Dover Corp. Quote

We note that Dover's bookings at the end of third-quarter were worth $1.69 billion, which fell roughly 1% from $1.70 billion at the end of third-quarter 2015. This does not augur well for the company's fourth-quarter 2016 performance.

Share Price Performance

In the last one year, Dover has outperformed the Zacks classified Machinery-General subindustry with respect to price performance. While the stock gained 48.9%, the industry recorded growth of 41.3% over the same time frame.

Earnings Whispers

Our proven model does not conclusively show that Dover is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: The Earnings ESP for Dover is 0.00%. This is because the Most Accurate estimate of 84 cents is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Dover currently carries Zacks Rank #3. Although this increases the predictive power of ESP, the company's 0.00% ESP makes surprise prediction uncertain.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions.

Stocks to Consider

Deere & Company DE has a positive Earnings ESP of +13.73% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Alcoa Corporation AA has an Earnings ESP of +8.70% and a Zacks Rank #3.

AGCO Corporation AGCO has an Earnings ESP of +5.63% and a Zacks Rank #3.

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Deere & Co. (DE): Free Stock Analysis Report

Agco Corp. (AGCO): Free Stock Analysis Report

Dover Corp. (DOV): Free Stock Analysis Report

Alcoa Corp. (AA): Free Stock Analysis Report

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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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