Dover Corp Earnings: Keeping the Profitability Streak Alive

S&P 500 (NYSE:SPY) component Dover Corp (NYSE:DOV) reported its results 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 Corp Earnings Cheat Sheet

Results: Net income for the machine industrial rose to $241 million ($1.31 per share) vs. $172.3 million (91 cents per share) in the same quarter a year earlier. This marks a rise of 39.9% from the year-earlier quarter.

Revenue: Rose 0.2% to $2.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dover Corp fell in line with the mean analyst estimate of $1.31 per share. Analysts were expecting revenue of $2.19 billion.

Quoting Management: Commenting on the third quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “The third quarter demonstrated the strength of our businesses as we leveraged modest revenue growth with 18% segment margin and delivered $1.32 EPS. The margin performance was especially encouraging because it was broad-based, as Communication Technologies, Printing & Identification and Engineered Systems all showed significant sequential improvement, while Energy remained very strong.”

Key Stats:

The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the second quarter, it topped the mark by one cent, and in the first quarter, it was ahead by 4 cents.

Net income has increased 8.7% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 40.3% from the year-earlier quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.23 per share, a drop from $1.26. For the fiscal year, the average estimate has moved down from $4.93 a share to $4.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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