Dover (DOV) to Report Q4 Earnings: What's in the Offing?

Dover Corporation DOV is set to release fourth-quarter 2019 results, before the opening bell on Jan 30.

A Sneak Peak at Q3 results

Dover reported better-than-expected third-quarter results, wherein earnings and revenues beat their respective Zacks Consensus Estimates and improved year over year. The company delivered a positive earnings surprise in all of the trailing four quarters, the average beat being 6.7%.

Which Way Are Estimates Trending?

The Zacks Consensus Estimate for Dover’s fourth-quarter earnings is currently pinned at $1.46, reflecting year-over-year growth of 2.1%. The same for total revenues is pegged at $1,804 million, indicating a decline of 0.2% from the prior-year quarter. The Zacks Consensus Estimate for the December-end quarter’s earnings moved north over the past 30 days.

Let’s see how things are shaping up prior to this announcement.

Dover Corporation Price and EPS Surprise

Dover Corporation Price and EPS Surprise

Dover Corporation price-eps-surprise | Dover Corporation Quote

Earnings Whisper

Our proven model predicts 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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Dover has an Earnings ESP of +1.72%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at $1.48 and $1.46, respectively.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Factors Setting the Tone

Dover’s fourth-quarter 2019 results are likely to reflect benefits from solid order backlog. Impressive performance of the Engineered Systems segment, benefits from cost-containment actions, as well as footprint-optimization projects and retail refrigeration are expected to have mitigated the impact of soft demand in the Refrigeration & Food Equipment segment.

Coming to the segments, the Zacks Consensus Estimate for Dover’s Fluids segment net sales is pegged at $729 million for the quarter, suggesting a year-over-year fall of 7.2%. The segment continues to benefit from retail fueling, margin improvement and acquisitions.

The Zacks Consensus Estimate for the Engineered Systems segment’s revenues is currently pinned at $731 million, suggesting an increase of 4.8% from the prior-year quarter’s $697 million. Strength in digital printing and large order backlog looks good for the segment growth.
 
Moreover, the Zacks Consensus Estimate for the Refrigeration and Food Equipment segment’s net sales is $337 million for the quarter under review, suggesting year-over-year growth of 3%. However, the segment’s fourth-quarter revenues and margin will likely reflect the impact of dismal retail refrigeration markets, and lower shipment in Asia.

The company has executed restructuring programs to better align costs and operations with the current market conditions through targeted facility consolidations, headcount reduction and other measures. These actions are likely to have aided the company’s October-December quarter margins.

Price Performance

In a year’s time, shares of Dover have gained 47.8%, outperforming the industry’s growth of 28.5%.

Other Stocks Poised to Beat Earnings Estimates

Here are a few other Industrial Products stocks which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.

Lindsay Corporation LNN has an Earnings ESP of +8.07% and sports a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Valmont Industries, Inc. VMI currently carries a Zacks Rank #2 and has an Earnings ESP of +2.93%.

Lincoln Electric Holdings, Inc. LECO, another Zacks #3 Ranked stock, has an Earnings ESP of +1.01%.

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