Dover Corp Earnings Cheat Sheet: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

S&P 500 (NYSE:SPY) component Dover Corp (NYSE:DOV) reported net income above Wall Street’s expectations for the third quarter. Dover 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 Third Quarter

Results: Net income from continuing operations rose to $228.6 million ($1.21 per share) vs. $219 million ($1.16 per share) in the same quarter a year earlier. This marks a rise of 4% from the year earlier quarter.

Revenue: Rose 22% to $2.2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DOV reported adjusted net income of $1.20 per share. By that measure, the company beat the mean estimate of $1.12 per share. Analysts were expecting revenue of $2.19 billion.

Quoting Management: Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “I am pleased Dover delivered strong third quarter performance driven by solid organic growth supported by acquisitions. Quarterly revenue, earnings, bookings and backlogall increased over the prior year. Revenue growth of 22% was largely driven by continued strength in our energy-related markets, our strong position in the handset market and improved results in the refrigeration equipment and Product ID markets.”

Key Stats:

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 22.3%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 25.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 47% and in the first quarter, the figure rose 80.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 2 cents in the first quarter, and by 12 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.16 a share to $1.09 over the last sixty days. The average estimate for the fiscal year is $4.47 per share, down from $4.57 ninety days ago.

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).

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(Source: Xignite Financials)

 

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