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Dover (DOV) Earnings & Sales Beat Estimates in Q4, Up Y/Y

In This Article:

Dover Corporation DOV reported fourth-quarter 2021 adjusted earnings per share (EPS) from continuing operations of $1.78, beating the Zacks Consensus Estimate of $1.66. The bottom line increased 15% year over year on the back of higher revenues and an improved mix of products and services.

On a reported basis, Dover delivered EPS of $2.49 in the quarter, surging 99% year over year.

Total revenues in the fourth quarter increased 12% year over year to $1,989 million. The top line surpassed the Zacks Consensus Estimate of $1,907 million.

Costs and Margins

Cost of sales rose 12% year over year to $1,268 million in the reported quarter. Gross profit increased 11% year over year to $721 million. The gross margin was 36.2% compared with the year-ago quarter’s 36.5%.

Selling, general and administrative expenses rose 8% to $439 million from the prior-year quarter’s figure. Adjusted operating profit increased 15% year over year to $352 million. Adjusted operating margin was 18% in the quarter compared with the prior-year quarter’s 17%.

Dover Corporation Price, Consensus and EPS Surprise

Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote

Segmental Performance

The Engineered Products segment’s revenues were up 17.5% year over year to $463 million in the quarter. The segment’s adjusted operating income dropped 5% year over year to $58 million.

The Clean Energy & Fueling segment’s revenues came in at $411 million compared with the prior-year quarter’s $409 million. The segment’s adjusted operating income was $61 million, down 15.5% year over year.

The Imaging & Identification segment’s revenues moved up 1.6% year over year to $292 million. The segment’s adjusted operating income rose 3.6% year over year to $60 million.

The Pumps & Process Solutions segment’s revenues rallied 29% year over year to $447 million in the fourth quarter. The adjusted operating income in the segment totaled $142 million compared with the year-ago quarter’s $85 million.

The Climate & Sustainability Technologies segment’s revenues increased to $376 million from $342 million reported in the year-earlier quarter. The segment’s adjusted operating income totaled $30 million compared with $28 million in fourth-quarter 2020.

Bookings and Backlog

Dover’s bookings at the end of the fourth quarter were worth $2.38 billion compared with the prior-year quarter’s $1.94 billion. Backlog surged 88% year over year to $3.24 billion at the end of the reported quarter.

Financial Position

The company generated free cash flow of $277 million in the fourth quarter compared with $376 million in the year-ago quarter. Cash flow from operations amounted to $327 million in the quarter under review compared with the prior-year quarter’s $418 million.

Dover completed three bolt-on acquisitions in the Clean Energy & Fueling segment for a total consideration of $945.9 million during the fourth quarter.