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Dover (DOV) Beats Earnings Estimates in Q2, Raises '24 View

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Dover Corporation (DOV - Free Report) has reported second-quarter 2024 adjusted earnings per share (EPS) from continuing operations of $2.36, beating the Zacks Consensus Estimate of $2.21. The bottom line increased 15% year over year.

On a reported basis, Dover has delivered an EPS of $2.04 in the quarter, up 19% year over year.

Total revenues in the second quarter increased 3.7% year over year to $2.18 billion. The top line surpassed the Zacks Consensus Estimate of $2.15 billion. Organic growth was 4.8% in the quarter.

Dover Corporation Price, Consensus and EPS Surprise

 

Dover Corporation Price, Consensus and EPS Surprise

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

Costs & Margins

Cost of sales grew 1.1% year over year to $1.36 billion in the reported quarter. Gross profit was up 8.2% year over year to $821 million. The gross margin was 37.7% compared with the year-ago quarter’s 36.1%.

Selling, general and administrative expenses rose 4.1% to $452 million from the prior-year quarter. Adjusted EBITDA improved 12.5% year over year to $518 million. The adjusted EBITDA margin was 23.8% in the quarter compared with the prior-year quarter’s 21.9%.

Segmental Performance

The Engineered Products segment’s revenues rose 8.7% year over year to $515 million in the quarter. The reported figure surpassed our expectation of $491 million. The segment’s adjusted EBITDA grew 33.9% year over year to $107.6 million. The figure missed our estimate of $111 million.

The Clean Energy & Fueling segment’s revenues were $463 million compared with the prior-year quarter’s $441 million. The figure topped our estimate of $448 million. The segment’s adjusted EBITDA was $95 million, up from the prior-year quarter’s $91 million. The figure topped our estimate of $83.9 million.

The Imaging & Identification segment’s revenues moved up 5.7% year over year to $288 million. The reported figure exceeded our expectation of $279 million. The segment’s adjusted EBITDA was $79 million, up from the year-ago quarter’s $65 million. The figure beat our estimate of $78 million.

The Pumps & Process Solutions segment’s revenues remained  flat year over year at $466 million in the second quarter. The figure missed our estimate of $506 million. The adjusted EBITDA of the segment totaled $150 million compared with the year-ago quarter’s $141 million. The reported figure was lower than our expectation of $160 million.

The Climate & Sustainability Technologies segment’s revenues decreased to $437 million from the $449 million reported in the year-earlier quarter. We predicted revenues of $442 million for this segment. The segment’s adjusted EBITDA totaled $86 million compared with $83 million in second-quarter 2023. The figure missed our estimate of $89.9 million.

Bookings

Dover’s bookings at the end of the second quarter were worth $2.18 billion compared with the prior-year quarter’s $1.89 billion. Total booking exceeded our estimate of $1.95 billion.

Financial Position

The company had a free cash inflow of $163 million in the second quarter compared with the year-ago quarter’s $155 million. Cash flow from operations amounted to $204 million in the quarter under review compared with the prior-year quarter’s $195 million.

Outlook

Backed by a strong second-quarter performance, the company raised its 2024 outlook. It has raised the adjusted EPS view to $9.05-$9.20 for 2024 from $9.00-$9.15. The company anticipates year-over-year revenue growth of 3-4%, modified from the previously announced 2-4%.

Price Performance

DOV shares have gained 21.7% in the past year compared with the industry’s growth of 18.6%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank

Dover currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Q2 Performance

Graco Inc. (GGG - Free Report) reported adjusted earnings per share (EPS) of 77 cents in second-quarter 2024, which surpassed the Zacks Consensus Estimate of 76 cents. The bottom improved 1% year over year.

Revenues fell 1% year over year to $553 million due to lower revenues generated from the Industrial and Process segments. The top line missed the Zacks Consensus Estimate of $561 million.

Manufacturing Stocks Awaiting Results

Ingersoll Rand Inc. (IR - Free Report) is scheduled to release its second-quarter 2024 results on Jul 31. The Zacks Consensus Estimate for IR’s second-quarter 2024 earnings is pegged at 77 cents per share, suggesting year-over-year growth of 13.2%.

The Zacks Consensus Estimate for the company’s top line is pegged at $1.78 billion, suggesting an increase of 5.6% from the prior year’s actual. IR has a trailing four-quarter average surprise of 12.9%.

Crane Company (CR - Free Report) , scheduled to release second-quarter 2024 results on Jul 29, has a trailing four-quarter average surprise of 15.2%. The Zacks Consensus Estimate for CR’s second-quarter 2024 earnings is pegged at $1.24 per share, suggesting year-over-year growth of 12.7%.

The Zacks Consensus Estimate for the company’s top line is pegged at $572.8 million, indicating an increase of 12.4% from the prior-year reported figure.


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