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In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in its bottom line, whereas the top line fell year over year. The company has a trailing four-quarter negative surprise of 1.7%, on average.
The Zacks Consensus Estimate for DOV’s first-quarter 2024 earnings per share is pegged at $1.91, suggesting a dip of 1.6% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.06 billion, indicating a fall of 1.2% from the prior-year quarter’s reported figure.
Price Performance
Dover’s shares have gained 16.2% in the past year compared with the industry’s growth of 29%.
Image Source: Zacks Investment Research
Factors at Play
DOV has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited its first-quarter performance. Gains from the recent acquisitions are also likely to have contributed to Dover’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the quarter under review.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the March-end quarter’s top-line results. However, lower shipments in vehicle service in Europe and Asia are likely to have offset the gains. We expect organic sales to have a negative impact of 2.5% for the quarter. Our model predicts currency translation to have an unfavorable impact of 0.3% on the segment’s sales.
The Zacks Consensus Estimate for the segment’s first-quarter 2024 revenues is pegged at $483 million, suggesting a fall of 2.9% from the prior-year quarter’s actual. The consensus estimate for the segment’s adjusted EBITDA is pegged at $88 million.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays in Europe/Asia. The Zacks Consensus Estimate for the segment’s revenues is pegged at $416 million for the quarter to be reported, suggesting a decline of 3.4% from the year-earlier actual.
The consensus estimate for the segment’s adjusted EBITDA is pegged at $83.4 million. We expect the unfavorable impacts of currency translation to weigh 1.3% year over year on the segment’s results.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers, and spares, as well as continued strength in consumables. We expect organic sales of the segment to grow 1% year over year in the quarter. The Zacks Consensus Estimate for the segment’s revenues is pinned at $282 million, suggesting a slight decrease from the $283 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pegged at $64 million.
Dover’s Pumps & Process Solutions segment has been facing softness in the biopharma business. This is likely to have impacted the segment’s performance in the to-be-reported quarter. Our model predicts a year-over-year fall of 4.5% for the segment’s organic sales. We expect currency translation to have a year-over-year negative impact of 0.1% in the quarter.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $414 million, suggesting a 0.1% fall from the prior-year quarter’s reported figure. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $121 million.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s first-quarter performance. Margins are likely to have gained on higher volumes. However, increased costs and the impacts of currency translations are likely to have partially offset the tailwind. We anticipate the segment’s organic sales to grow 7.3% year over year in the to-be-reported quarter. However, our model predicts currency translation to have a year-over-year negative impact of 0.6% on the segment’s top line.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $486 million, implying 6.8% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $91 million.
Here’s What the Zacks Model Predicts
Our proven model does not conclusively predict an earnings beat for Dover this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of -2.27%.
Zacks Rank: Dover currently carries a Zacks Rank # 3.
Stocks That Warrant a Look
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
The consensus estimate for Eaton’s earnings for the first quarter of 2024 is pegged at $2.28 per share. ETN currently carries a Zacks Rank of 2. It has a trailing four-quarter average surprise of 4.8%
Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its first-quarter 2024 on May 2, has an Earnings ESP of +1.82% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Ingersoll Rand’s first-quarter 2024 earnings is pegged at 69 cents per share. It has a trailing four-quarter average surprise of 15.9%.
Crane Company (CR - Free Report) is scheduled to release its first-quarter 2024 results on Apr 22. It has an Earnings ESP of +0.28% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for CR’s first-quarter earnings is pegged at $1.12 per share. It has a trailing four-quarter average surprise of 25.1%.
Image: Bigstock
Dover (DOV) to Report Q1 Earnings: What's in the Offing?
Dover Corporation (DOV - Free Report) will release first-quarter 2024 results on Apr 25, before the opening bell.
Q4 Results
In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in its bottom line, whereas the top line fell year over year. The company has a trailing four-quarter negative surprise of 1.7%, on average.
Dover Corporation Price and EPS Surprise
Dover Corporation price-eps-surprise | Dover Corporation Quote
Q1 Estimates
The Zacks Consensus Estimate for DOV’s first-quarter 2024 earnings per share is pegged at $1.91, suggesting a dip of 1.6% from the prior-year quarter’s reported level. The same for total revenues is pinned at $2.06 billion, indicating a fall of 1.2% from the prior-year quarter’s reported figure.
Price Performance
Dover’s shares have gained 16.2% in the past year compared with the industry’s growth of 29%.
Image Source: Zacks Investment Research
Factors at Play
DOV has been witnessing robust bookings and order backlogs across its segments on strong demand and shipment levels, which are likely to have benefited its first-quarter performance. Gains from the recent acquisitions are also likely to have contributed to Dover’s performance in the to-be-reported quarter.
The company’s margins have been gaining from a strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impacts of supply-chain constraints, input inflation and production disruptions. These are likely to have driven DOV’s profitability in the quarter under review.
Segmental Estimates
In the Engineered Products segment, the demand for engineered products, vehicle service and industrial automation has been strong, which is expected to get reflected in the March-end quarter’s top-line results. However, lower shipments in vehicle service in Europe and Asia are likely to have offset the gains. We expect organic sales to have a negative impact of 2.5% for the quarter. Our model predicts currency translation to have an unfavorable impact of 0.3% on the segment’s sales.
The Zacks Consensus Estimate for the segment’s first-quarter 2024 revenues is pegged at $483 million, suggesting a fall of 2.9% from the prior-year quarter’s actual. The consensus estimate for the segment’s adjusted EBITDA is pegged at $88 million.
The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gasses in the quarter under review. However, it is expected to have been slightly hampered by subdued demand for above-ground fueling due to customer construction delays in Europe/Asia. The Zacks Consensus Estimate for the segment’s revenues is pegged at $416 million for the quarter to be reported, suggesting a decline of 3.4% from the year-earlier actual.
The consensus estimate for the segment’s adjusted EBITDA is pegged at $83.4 million. We expect the unfavorable impacts of currency translation to weigh 1.3% year over year on the segment’s results.
The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding printers, and spares, as well as continued strength in consumables. We expect organic sales of the segment to grow 1% year over year in the quarter. The Zacks Consensus Estimate for the segment’s revenues is pinned at $282 million, suggesting a slight decrease from the $283 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pegged at $64 million.
Dover’s Pumps & Process Solutions segment has been facing softness in the biopharma business. This is likely to have impacted the segment’s performance in the to-be-reported quarter. Our model predicts a year-over-year fall of 4.5% for the segment’s organic sales. We expect currency translation to have a year-over-year negative impact of 0.1% in the quarter.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $414 million, suggesting a 0.1% fall from the prior-year quarter’s reported figure. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $121 million.
In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s first-quarter performance. Margins are likely to have gained on higher volumes. However, increased costs and the impacts of currency translations are likely to have partially offset the tailwind. We anticipate the segment’s organic sales to grow 7.3% year over year in the to-be-reported quarter. However, our model predicts currency translation to have a year-over-year negative impact of 0.6% on the segment’s top line.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $486 million, implying 6.8% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $91 million.
Here’s What the Zacks Model Predicts
Our proven model does not conclusively predict an earnings beat for Dover this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Dover has an Earnings ESP of -2.27%.
Zacks Rank: Dover currently carries a Zacks Rank # 3.
Stocks That Warrant a Look
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Eaton Corporation plc (ETN - Free Report) , expected to release earnings soon, has an Earnings ESP of +1.95%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Eaton’s earnings for the first quarter of 2024 is pegged at $2.28 per share. ETN currently carries a Zacks Rank of 2. It has a trailing four-quarter average surprise of 4.8%
Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its first-quarter 2024 on May 2, has an Earnings ESP of +1.82% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Ingersoll Rand’s first-quarter 2024 earnings is pegged at 69 cents per share. It has a trailing four-quarter average surprise of 15.9%.
Crane Company (CR - Free Report) is scheduled to release its first-quarter 2024 results on Apr 22. It has an Earnings ESP of +0.28% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for CR’s first-quarter earnings is pegged at $1.12 per share. It has a trailing four-quarter average surprise of 25.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.