Dover Corporation DOV reported first-quarter 2019 adjusted earnings per share from continuing operations of $1.24. The figure improved 37.7% from the prior-year quarter’s 90 cents. Earnings beat the Zacks Consensus Estimate of $1.12, delivering positive surprise of 10.7%.
On a reported basis, Dover posted earnings per share of 72 cents in the quarter, up 2.8% year over year. Earnings included acquisition-related amortization costs of 18 cents and rightsizing costs of 2 cents.
Total revenues in the reported quarter came in at $1,725 million, reflecting year-over-year increase of 5.3%. Revenues also beat the Zacks Consensus Estimate of $1,687 million, backed by organic growth of 8.3% and acquisition growth of 0.5%. This was partly offset by a 3.4% unfavorable foreign-exchange impact.
Costs and Margins
Cost of sales grew 6.4% to $1,101 million in the first quarter. Gross profit increased 3.4% year over year to $623 million.
Selling, general and administrative expenses slipped 6.2% to $408 million from $435 million reported in the prior-year quarter. Operating profit marginally improved to $168 million from the year-ago quarter’s reported tally of $167 million.
Dover Corporation Price, Consensus and EPS Surprise
Dover Corporation Price, Consensus and EPS Surprise | Dover Corporation Quote
The Engineered Systems segment revenues improved 2.4% to $687 million from $671 million recorded in the year-ago quarter. The segment’s income increased 20.5% year over year to $123 million.
The Fluids segment revenues were up 12% year over year to $703 million in the quarter. The segment’s income declined 22.3% year over year to $52 million. Excluding the loss on sale of assets related to Finder, segment’s income surged 47.7% year over year.
The Refrigeration & Food Equipment segment’s revenues edged down 1.1% to $334 million from the year-ago quarter’s reported figure of $338 million. The segment’s operating income also dropped 17.2% year over year to $24 million.
Bookings and Backlog
Dover’s bookings at the end of the first quarter were worth $1.78 billion, down from $1.82 billion recorded at the end of first-quarter 2018. Backlog increased 6% year over year to $1.42 billion at the end of the reported quarter.
Dover generated a negative free cash flow of $12.5 million during the Mar-end quarter compared with $29 million in the prior-year quarter. Cash flow from operations came in at $24.5 million in the first quarter compared with $15.5 million reported in the year-ago period.
Dover maintained its adjusted earnings per share guidance of $5.65-$5.85 for full-year 2019.
Share Price Performance
Over the past year, Dover has gained around 0.8% compared with the industry’s growth of 5.9%.
Zacks Rank and Stocks to Consider
Dover currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. BOOM, Lawson Products, Inc. LAWS and DXP Enterprises, Inc. DXPE, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have rallied 128.3%, in the past year.
Lawson Products has an outstanding projected earnings growth rate of 102.5% for the current year. The stock has appreciated 23.3% in a year’s time.
DXP Enterprises has an expected earnings growth rate of 21.6% for 2019. The company’s shares have gained 18.6%, over the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Is your investment advisor fumbling your financial future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.” Click to get your free report.
Dover Corporation (DOV) : Free Stock Analysis Report
DXP Enterprises, Inc. (DXPE) : Free Stock Analysis Report
DMC Global Inc. (BOOM) : Free Stock Analysis Report
Lawson Products, Inc. (LAWS) : Free Stock Analysis Report
To read this article on Zacks.com click here.