Dover Earnings: Despite Topping Analyst Estimates, Shares Fall on Net Income

Dover Corp. (NYSE:DOV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Even though analyst estimates were exceeded, investors were disappointed by the net income drop. Shares are down 1.36%.

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Dover Corp. Earnings Cheat Sheet

Results: Net income decreased -42.54% to $159.9 million (90 cents per diluted share) in the quarter versus a net gain of $278.29 million in the year-earlier quarter.

Revenue: Rose 9.97% to $2.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dover Corp. reported adjusted net income of $1.09 per share. By that measure, the company beat the mean analyst estimate of $1.07. It beat the average revenue estimate of $2 billion.

Quoting Management: Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “Looking ahead, our full year view of 2013 is unchanged from our December 10, 2012 investor day guidance.  We expect full year organic growth of 3% to 5% complemented by acquisition growth of 4%, resulting in revenue growth of 7% to 9%…

…The benefits of leverage on volume coupled with a lower share count from our repurchase program will help us deliver solid earnings growth.  Accordingly, we are reaffirming full year diluted EPS from continuing operations in the range of $5.05 – $5.35.”

Key Stats:

Revenue decreased 9% from $2.21 billion in the previous quarter. Net income decreased 33.67% from $241.05 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.2 to a profit $1.17. For the current year, the average estimate has moved down from a profit of $4.62 to a profit of $4.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)