Dover Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Dover (NYSE:DOV) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. 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.

Dover Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.07 per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.12. Between one and three months ago, the average estimate moved down. It has risen from $1.05 during the last month. Analysts are projecting profit to rise by 6.3% versus last year to $4.53.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of $1.30 per share against a mean estimate of net income of $1.27 per share.

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A Look Back: In the third quarter, profit rose 39.9% to $241 million ($1.31 a share) from $172.3 million (91 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 0.2% to $2.21 billion from $2.2 billion.

Here’s how Dover traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

DOV

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.57 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.54 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 2.2% to $3.28 billion while liabilities rose by 1.1% to $1.28 billion.

Key Stats:

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 16.6% for the last four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 0% in the second quarter after increasing in the third quarter.

Wall St. Revenue Expectations: Analysts are projecting no change in revenue from the year-earlier quarter to $2 billion.

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