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Dover (DOV) to Report Q3 Earnings: What's in the Offing?

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Dover Corporation DOV is set to release third-quarter 2021 results, before the opening bell, on Oct 19.

Q2 Results

In the last reported quarter, Dover’s earnings and sales beat the respective Zacks Consensus Estimate and improved year over year. The company has a trailing four-quarter average earnings surprise of 17.6%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter 2021 earnings per share is currently pegged at $1.87, suggesting growth of 16.8% from the prior-year quarter. The same for total revenues is pinned at $2 billion, indicating a year-over-year increase of 14.6%.

Factors At Play

Dover has been witnessing robust order trends across multiple markets, particularly in the pumps and process solutions, fueling solutions, food retail, marking & coding and automotive aftermarket businesses. Thus, benefits from robust bookings and order backlog across the company’s segments might get reflected in the third quarter’s results. Further, manufacturing activity has been expanding for 15 consecutive months now. This is likely to have contributed to the company’s third-quarter performance.

Dover’s efforts to boost productivity and cost initiatives are anticipated to have driven margins during the quarter under review. It has been executing restructuring programs to better align costs and operations with the current market conditions through targeted facility consolidations, headcount reductions and other measures. These actions are likely to have aided the company’s quarterly performance.

Segmental Estimates

In the Engineered Products segment, demand for engineered products, vehicle service and industrial automation has been strong, which might get reflected in the to-be-reported quarter top-line number. The Zacks Consensus Estimate for the segment’s third-quarter revenues is currently pegged at $439 million, suggesting year-over-year growth of 13.4%. The estimate for operating profit stands at $69 million, calling for an improvement of 6.1% from the prior-year quarter’s figure of $48 million.

The Fueling Solutions segment is likely to have gained from robust growth in systems and software, recovering underground demand and vehicle wash during the July-September quarter. The Zacks Consensus Estimate for the segment’s revenues is pinned at $422 million, suggesting a year-over-year increase of 10.7%. The estimate for the operating profit is pegged at $73 million, suggesting growth of 9%, year over year.

The Imaging & Identification segment’s results are likely to reflect solid demand for the consumables and fast-moving consumer goods solutions. The Zacks Consensus Estimate for the segment’s revenues is pinned at $305 million, indicating a year-over-year rise of 14.6%. The Zacks Consensus Estimate for the segment’s operating profit is estimated at $63 million, suggesting an increase of 21.1% from the prior-year quarter.

In the Refrigeration & Food Equipment segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s third-quarter performance. The Zacks Consensus Estimate for the segment’s quarterly revenues is currently pegged at $437 million, calling for 18.7% growth, year over year. The estimate for operating profit is pegged at $57 million compared with the year-ago quarter’s $40.2 million.

In the Pumps & Process Solutions segment, robust demand for the biopharma connectors and pumps, driven by the vaccine and non-COVID-related pharmaceutical tailwinds are likely to have aided the segment’s September-end quarter performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $420 million, suggesting year-over-year growth of 20.6%. The consensus mark of $118 million for the quarterly operating profit indicates an increase of 31.1% year over year.

Dover Corporation Price and EPS Surprise

Dover Corporation Price and EPS Surprise
Dover Corporation Price and EPS Surprise

Dover Corporation price-eps-surprise | Dover Corporation Quote

What Our Zacks Model Indicates

Our proven model does not predict an earnings beat for Dover this time around. 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’s not the case here.

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

Earnings ESP: The Earnings ESP for Dover is -1.58%.

Zacks Rank: Dover currently carries a Zacks Rank of 4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Share Price Performance

The company’s shares have gained 40.5% over the past year, outperforming the industry’s growth of 11.8%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Stocks to Consider

Here are some Industrial Products stocks, which you might consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Berry Global Group, Inc. BERY has an Earnings ESP of +1.78% and carries a Zacks Rank of 2, at present.

Columbus McKinnon Corporation CMCO has an Earnings ESP of +5.26% and carries a Zacks Rank #2, currently.

Rockwell Automation, Inc. ROK, currently a Zacks #3 Ranked stock, has an Earnings ESP of +2.60%.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dover Corporation (DOV) : Free Stock Analysis Report

Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report

Berry Global Group, Inc. (BERY) : Free Stock Analysis Report

Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report

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