Dover Corporation DOV is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. The company mainly delivers innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.
Dover anticipates first-quarter results to be significantly lower than its earlier expectations due to weakness in the oil and gas-related end markets. In fact, Dover has been facing substantial headwinds in the energy-related markets. Meanwhile, reduced demand and a decline in customer inventory in the company’s North American Energy markets as well as lower customer capital spending in the retail refrigeration and oil & gas-related pump markets continue to mar its results.
We have highlighted some of the key stats from this just revealed announcement below:
Estimate Trend & Surprise History
Investors should note that the earnings estimate revisions for Dover has been revised downward during last 30 days.
Dover has outpaced the Zacks Consensus Estimate in two out of the past four quarters, resulting in an average positive surprise of 2.80%.
Earnings
Dover missed on first quarter 2016 earnings. The Zacks Consensus Estimate called for EPS of 59 cents, while the company reported EPS of 52 cents. Investors should note that these figures take out special items.
Revenue
Dover posted revenues of $1.62 billion, surpassing the Zacks Consensus Estimate for revenues of $1.58 billion. However, revenues declined 5% year over year impacted by an organic revenue decline and an unfavorable impact from foreign exchange.
Key Stats
Dover’s bookings at the end of first quarter were worth $1.68 billion, which fell roughly 4% from $1.75 billion at the end of first-quarter 2015. Backlog also declined to $1.07 billion at the end of the reported quarter from $1.19 billion at the year-ago quarter end.
Dover narrowed its full year 2016 earnings per share guidance range to $3.57 to $3.72 (excluding one time items) from the prior band of $3.85 to $4.05. The company also expects full year revenue to decline 2% to 5%, a three point reduction from the previous forecast. The guidance cut came on the back of weak oil & gas markets.
Zacks Rank
Currently, Dover has a Zacks Rank #3 (Hold), but that could change following Dover’s earnings report which was just released.
Market Reaction
Dover’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Dover’s earnings report later!
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DOVER CORP (DOV): Free Stock Analysis Report
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