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Is a Beat in Store for Dover (DOV) This Earnings Season?

Zacks Equity Research

We expect Dover Corporation DOV to beat on earnings expectations when it reports first-quarter 2017 results, before the opening bell on Apr 20.

The company’s earnings missed the Zacks Consensus Estimate in the last quarter. Dover beat estimates in two out of the trailing four quarters, with a negative earnings surprise of 5.02%.

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

Dover Corporation Price and EPS Surprise

 

Dover Corporation Price and EPS Surprise | Dover Corporation Quote

Why a Likely Positive Surprise?

Our proven model shows that Dover has the right combination of the two key ingredients to beat earnings.

Zacks ESP: The Earnings ESP for the stock, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is pegged at +1.67%. This is a major indicator of a likely positive earnings surprise for the company. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Dover carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings.

The combination of Dover’s Zacks Rank #3 and ESP of +1.67% makes us confident of an earnings beat.

What’s in Store in Q1?

Dover is likely to benefit from its acquisition strategy, robust hygienic and pharma markets, and recovery in the North American rig count. Further, Dover’s diligent efforts to divest its businesses will help in reducing exposure to cyclical markets and focus on higher margin growth spaces. Improvements in the early cycle upstream oil and gas markets, and strong performance in Printing & Identification are also expected to drive first-quarter results.

Share Price Performance

Dover underperformed the Zacks categorized Machinery-General sub-industry over the past one year. Dover’s shares gained nearly 17.8% during this period, while the industry recorded growth of 21.6%.



Stocks to Consider

Here are a few stocks which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:

Deere & Company DE has an Earnings ESP of +5.03% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Altra Industrial Motion Corp. AIMC has an Earnings ESP of +5.00% and a Zacks Rank #2.

Parker-Hannifin Corp. PH has an Earnings ESP of +2.16% and a Zacks Rank #2.

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Deere & Company (DE): Free Stock Analysis Report
 
Dover Corporation (DOV): Free Stock Analysis Report
 
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Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
 
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