Dover CorporationDOV has trimmed its 2015 sales and earnings guidance citing continued weak fundamentals in the North American oil & gas markets, and generally weaker capital spending in retail refrigeration and certain industrial end-markets. The company now expects earnings per share in the range of $3.75 to $3.90, compared with its prior expectation of $4.20 to $4.40. Dover's shares went down 1.23% on the announcement.
Sales are now projected to decline 8% to 9% for the year. This includes organic revenue growth of -7% to -8%, a negative impact from foreign currency of 4% and growth from acquisitions of 3%. Dover had earlier projected revenue decline of 4% to 6% for 2015.
Dover witnessed significant headwinds in energy-related markets which hampered its first-quarter 2015 results. Going forward, the company's results will continue to bear the brunt of weak demand and significant customer inventory reductions in the North American Energy markets. The company cautions that second-quarter results have been impacted by reduced activity related to customer capital spending in retail refrigeration, oil & gas related pump markets and in industrial businesses within Engineered Systems.
Dover also anticipates capital spending in these markets to remain subdued for the balance of the year. Considering all these factors the company has lowered its guidance for the year. However, despite challenging end markers, the company continues to focus on cost and productivity initiatives and investment for future growth.
Dover is slated to release its second-quarter results before the opening bell on Jul 21, 2015. The estimates for Dover have moved downward in the past 60 days. The Zacks Consensus Estimate for 2015 decreased 1% to $4.17 per share and for 2016 the same declined 0.2% to $4.68 per share.
Dover currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.