S&P 500 (NYSE:SPY) component Dover Corp (NYSE:DOV) reported net income above Wall Street’s expectations for the second quarter. Dover Corporation operates a portfolio of manufacturing companies providing innovative components and equipment, specialty systems and support services for a variety of applications to global customers.
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Dover Earnings Cheat Sheet for the Second Quarter
Results: Net income for the diversified machinery company rose to $249.8 million ($1.31 per share) vs. $169.9 million (90 cents per share) in the same quarter a year earlier. This marks a rise of 47.1% from the year earlier quarter.
Revenue: Rose 21% to $2.2 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: DOV beat the mean analyst estimate of $1.15 per share. It beat the average revenue estimate of $2.09 billion.
Quoting Management: Commenting on the second quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “I was pleased with Dover’s second quarter performance, as quarterly revenue, earnings, margin, bookings and backlogall increased over the prior year. Revenue growth of 21% was largely driven by strength in our energy markets and a continued recovery in selected infrastructure markets served by Industrial Products.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 25.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 28.5% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 80.3% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by 12 cents in the fourth quarter of the last fiscal year, and by 8 cents in the third quarter of the last fiscal year.
Margins rose in the first quarter after falling the quarter before. Gross margin rose 0.5 percentage point to 39% from the quarter earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 0.4 percentage point to 38.2% from the year earlier quarter.
Competitors to Watch: Illinois Tool Works Inc. (NYSE:ITW), Danaher Corporation (NYSE:DHR), Spectrum Control, Inc. (NASDAQ:SPEC), Actuant Corporation (NYSE:ATU), SPX Corporation (NYSE:SPW), Gardner Denver, Inc. (NYSE:GDI), 3M Company (NYSE:MMM), IDEX Corporation (NYSE:IEX), The LGL Group, Inc. (AMEX:LGL), and AMETEK, Inc. (NYSE:AME).
(Source: Xignite Financials)