Yahoo Finance Dover (DOV) Earnings Meet Estimates in Q1, Increase Y/Y
Dover Corporation DOV reported first-quarter 2023 adjusted earnings per share (EPS) from continuing operations of $1.94, in line with the Zacks Consensus Estimate. The bottom line increased 2% year over year.
On a reported basis, Dover delivered EPS of $1.63 in the quarter, up 4% year over year.
Total revenues in the first quarter increased 1.3% year over year to $2,079 million. The top line surpassed the Zacks Consensus Estimate of $2,071 million. Strong demand and recovery in global supply chains drove top-line growth across the majority of the company’s businesses in the quarter. Solid new order intake also aided growth.
Costs and Margins
Cost of sales rose 1.8% year over year to $1,332 million in the reported quarter. Gross profit increased 0.5% year over year to $747 million. The gross margin was 35.9% compared with the year-ago quarter’s 36.2%.
Selling, general and administrative expenses were down 2.7% to $432 million from the prior-year quarter. Adjusted EBITDA increased 2.7% year over year to $450 million. The adjusted EBITDA margin was 21.6% in the quarter compared with the prior-year quarter’s 21.3%.
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 2% year over year to $498 million in the quarter. The segment’s adjusted EBITDA increased 16.7% year over year to $91 million.
The Clean Energy & Fueling segment’s revenues were $431 million compared with the prior-year quarter’s $458 million. The segment’s adjusted EBITDA was $80.6 million, down from the prior-year quarter’s $81.4 million.
The Imaging & Identification segment’s revenues moved up 4% year over year to $283 million. The segment’s adjusted EBITDA improved 15.6% year over year to $72 million.
The Pumps & Process Solutions segment’s revenues decreased 4.8% year over year to $414 million in the first quarter. The adjusted EBITDA in the segment totaled $126 million compared with the year-ago quarter’s $157 million.
The Climate & Sustainability Technologies segment’s revenues increased to $455 million from $399 million reported in the year-earlier quarter. The segment’s adjusted EBITDA totaled $80 million compared with $60 million in first-quarter 2022.
Bookings and Backlog
Dover’s bookings at the end of the first quarter were worth $2.04 billion compared with the prior-year quarter’s $2.25 billion. Backlog fell 13.2% year over year to $2.97 billion at the end of the reported quarter.
Financial Position
The company had a free cash flow of $193 million in the first quarter against the cash outflow of $27 million in the year-ago quarter. Cash flow from operations amounted to $241 million in the quarter under review compared with the prior-year quarter’s $24 million.
Outlook
The company expects to generate adjusted EPS of $8.85-$9.05 for 2023. It anticipates organic revenue growth of 3-5% for the year.
Price Performance
Dover’s shares have gained 4.6% in the past year compared with the industry’s growth of 11.8%.
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Zacks Rank and Stocks to Consider
Dover currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. WOR, The Manitowoc Company, Inc. MTW and OI Glass Inc. OI. WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.
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