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What's in Store for Dover (DOV) This Earnings Season?

Dover CorporationDOV is scheduled to report third-quarter 2015 results on Oct 20, before the market opens.

Last quarter, this industrial products maker posted a positive earnings surprise. Let's see how things are shaping up prior to this announcement.

Factors to Consider This Quarter

Dover has faced significant headwinds in the energy-related markets. In Energy, Dover remains cautious and expects persistent decline in demand levels to negatively impact its performance. Moreover, Dover's growth will be hurt by lower oil prices and foreign exchange volatility. Increased charges, decline in rig count as well as lower order activity also remain threats.

So far in 2015, Dover's bookings and backlog have decreased. Weak energy macros, softer capital spending in retail refrigeration and industrial businesses in Engineered Systems will impact bookings in the near term. The company also expects order activity to be lower for cases and systems within the Refrigeration & Food Equipment segment which will hurt overall bookings and backlog.

What Our Model Indicates

Our proven model shows that Dover is not likely to beat estimates this quarter. This is because 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. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: Dover's Earnings ESP is -0.94%. This is because the Most Accurate Estimate of $1.05 is lower than the Zacks Consensus Estimate of $1.06.

Zacks Rank: Dover's Zacks Rank #4 (Sell) when combined with a negative ESP makes surprise prediction unlikely. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

ABB Ltd. ABB with an Earnings ESP of +3.57% and a Zacks Rank #3.

Ball Corp. BLL has an earnings ESP of +2.11% and holds a Zacks Rank #3.

Xylem Inc. XYL with an Earnings ESP of +2.08% and a Zacks Rank #3.

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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

DOVER CORP (DOV): Free Stock Analysis Report

BALL CORP (BLL): Free Stock Analysis Report

ABB LTD-ADR (ABB): Free Stock Analysis Report

XYLEM INC (XYL): 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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