Dover Corporation (DOV Quick QuoteDOV - Free Report) is slated to report fourth-quarter earnings results on Jan 30, before the opening bell. Dover is expected to report year-over-year growth in both its top and bottom lines, as per our projections. The strong bookings trends, along with consistent rig count additions and higher-than-expected well completions, have poised the company for a stellar fourth quarter. Moreover, solid outlook for Dover’s Engineered Systems and Fluid segments will drive the quarter’s performance.

 

In third-quarter 2017, Dover reported adjusted earnings per share of $1.16, which surged 40% year over year. Total revenues increased 17% year over year to $2 billion in the quarter backed by acquisitions, organic growth and favorable impact from foreign, partly offset by an impact from dispositions. The company beat the Zacks Consensus Estimate on both counts.

 

 

Shares of Dover have gained 25.3% in the past six months, outperforming the industry’s growth of 18.0%.

 

However, despite the company beating the Zacks Consensus Estimate for earnings in three of the trailing four quarters, it has an average negative earnings surprise history of 1.22%.

 

 

The Energy segment grew sequentially for the fifth consecutive quarter in third quarter-2017, delivering year-over-year growth for the third straight quarter. We believe this feat will be repeated in the fourth quarter given that the Zacks Consensus Estimate for revenues of $649 million for the segment displays a sequential increase of 0.5% and year-over-year growth of 4%. Revenue growth continues to be driven by significant improvement in early-cycle oil and gas fundamentals, particularly U.S. rig count and well completions. The Zacks Consensus Estimate for the segment’s operating earnings is pegged at $54 million, a 75% projected increase year over year.

 

In the Engineered Systems segment, Dover’s Printing & Identification platform will consistently deliver solid performance, backed by continued strong growth in digital printing and solid activity in marking and coding markets. The estimate for the segment’s revenues for the fourth quarter is pegged at $649 million, a 4% projected year-over-year growth. The segment’s operating earnings is projected at $102 million, a 5% annual growth.

 

The Zacks Consensus Estimate for revenues for Dover’s Refrigeration and Food Equipment segment is pegged at $363 million, a 3% year-over-year decline. Results in the segment remain affected by persistent softness in the commercial cooking equipment markets. The segment’s earnings will fall 65% year over year to $41.6 million, as projected by the Zacks Consensus model, due to the decline in sales as well as higher raw material costs.

 

For the Fluids segment, the Zacks Consensus Estimate for revenues is pegged at $622 million, a projected 29% year-over-year rise on acquisition growth.  The retail fueling integration continues to be on track and the segment continues to witness strong sequential margin improvement. The Zacks Consensus Estimate for the segment’s operating earnings is $90 million, a substantial improvement of 160% year over year and a 3% sequential rise.

 

Dover’s bookings at the end of the third quarter were worth $1.94 billion, up 15% year over year. Backlog increased 18% to $1.27 billion at the end of the reported quarter. Backed by strong bookings growth, the company is poised for a solid fourth quarter. The Zacks Consensus Estimate for revenues for Dover is at $1.99 billion, a 12% year-over-year growth.

 

Based on the latest Zacks Consensus Estimate, we expect Dover to report earnings of $1.04 per share in the fourth quarter. This would mark growth of 37% from the 76 cents per share posted in the year-ago quarter.

 

Currently, Dover carries a Zacks Rank #3 (Hold).

 

 

Here are a few industrial products stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

 

Deere & Company (DE Quick QuoteDE - Free Report) has an Earnings ESP of +3.29% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Deere’s shares have surged 56% in the past year.

 

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 

iRobot Corporation (IRBT Quick QuoteIRBT - Free Report) has an Earnings ESP of +17.65% and a Zacks Rank #1. Its shares have gone up 47% in a year’s time.

 

The Earnings ESP for Donaldson Company, Inc. (DCI Quick QuoteDCI - Free Report) is +3.45%. It carries a Zacks Rank #2 (Buy). Shares of Donaldson Company have gone up 18% in a year’s time.

 

 

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