Dover Corporation (NYSE:DOV) shares fell 2.8% to US$114 in the week since its latest full-year results. Revenues of US$7.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.61, missing estimates by 2.0%. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Dover after the latest results.
After the latest results, the eleven analysts covering Dover are now predicting revenues of US$7.31b in 2020. If met, this would reflect an okay 2.4% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to soar 23% to US$5.76. Before this earnings report, analysts had been forecasting revenues of US$7.35b and earnings per share (EPS) of US$5.47 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$120, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Dover at US$132 per share, while the most bearish prices it at US$93.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
In addition, we can look to Dover's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. One thing stands out from these estimates, which is that analysts are forecasting Dover to grow faster in the future than it has in the past, with revenues expected to grow 2.4%. If achieved, this would be a much better result than the 0.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 1.6% per year. Although Dover's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around Dover's earnings potential next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Dover going out to 2024, and you can see them free on our platform here..
You can also view our analysis of Dover's balance sheet, and whether we think Dover is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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