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

Dover Corporation DOV will release third-quarter 2022 results on Oct 20, before the opening bell.

Q2 Results

In the last reported quarter, Dover’s earnings beat the Zacks Consensus Estimate, while sales missed the same. DOV reported a year-over-year improvement in both its top and the bottom line. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 5.1%.

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

Q3 Estimates

The Zacks Consensus Estimate for third-quarter 2022 earnings per share is currently pegged at $2.20, suggesting growth of 11% from the prior-year quarter’s levels. The same for total revenues is pinned at $2.16 billion, indicating an increase of 7% from the prior-year tally. Our estimates for the quarter’s revenues are pegged at $2.17 billion and for earnings, at $2.20.

Price Performance

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Dover’s shares have declined 28.3% in the past year compared with the industry’s decrease of 19.7%.

Factors at Play

Dover is witnessing robust bookings and order backlog across its segments owing to strong demand and shipment levels, which are likely to have benefited third-quarter performance. Benefits from recent acquisitions are also likely to have contributed to DOV’s performance in the to-be-reported quarter.

The margins has been gaining from strong volume, an improved price-cost spread and tight cost controls for a while, offsetting the negative impact of supply-chain constraints, input inflation and production disruptions. This will likely drive DOV’s profitability in the third quarter.

Segmental Estimates

In the Engineered Products segment, demand for engineered products, vehicle service and industrial automation continues to be strong, with strength in North America, particularly, which might get reflected in the September quarter’s top line. The Zacks Consensus Estimate for the segment’s third-quarter revenues is currently pegged at $492 million, suggesting growth of 10% from the prior-year quarter’s reading. The consensus estimate for the segment’s adjusted EBITDA is pegged at $89 million, implying an increase from the prior-year quarter’s $75 million.

The Clean Energy and Fueling Solutions segment is likely to have gained from growth in below-ground, fuel transport, vehicle wash and industrial gases as well as benefits from recent acquisitions during the quarter under review. The Zacks Consensus Estimate for the segment’s revenues is pegged at $471 million, suggesting a rise of 15% from the year-earlier actuals. The estimate for the segment’s adjusted EBITDA is pegged at $109 million, calling for 25% growth from the year-ago reported number.

The Imaging & Identification segment’s results will likely reflect the recovery in component shortages from second-quarter COVID shutdowns in China, with demand improvement in textiles. The Zacks Consensus Estimate for the segment’s revenues is pinned at $593 million, indicating in-line results with last year’s quarter. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is estimated at $70 million, suggesting a decline of 7% from the prior-year quarter’s levels.

In the Pumps & Process Solutions segment, robust demand for industrial pumps and polymer processing activity is likely to have aided the segment’s third-quarter performance. The customers’ demand shift from COVID vaccine production to alternative therapies is expected to have aided its biopharma business. The Zacks Consensus Estimate for the segment’s revenues is pegged at $444 million, suggesting growth of 1% from the prior-year tally. The consensus mark for the segment’s third-quarter adjusted EBITDA is pegged at $142 million, indicating a decline of 11% from the year-earlier tally.

In the Climate and Sustainability Technologies segment, strong order rates in the food retail business and large backlogs are likely to have aided the segment’s third-quarter performance. Its heat exchanger and beverage packaging business is also seeing strong order rates. The Zacks Consensus Estimate for the segment’s quarterly revenues is currently pegged at $454 million, projecting 6% growth from the year-earlier reported figure. The consensus estimate for the segment’s adjusted EBITDA is pegged at $75 million, hinting at growth from the year-ago quarter’s $57 million.

What Our Zacks Model Indicates

Our proven model doesn’t conclusively 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 as you can see below.

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 -0.23%.

Zacks Rank: Dover currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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 beat on earnings in their upcoming releases.

RBC Bearings RBC currently has an Earnings ESP of +3.22% and a Zacks Rank of 1. The Zacks Consensus Estimate for third-quarter 2022 earnings has moved up 5% in the past 60 days to $1.72 per share. The estimate suggests growth of 102% from the prior-year tally. RBC has a trailing four-quarter earnings surprise of 9.4%, on average.

The Zacks Consensus Estimate for ROLL’s quarterly revenues is pegged at $363 million, which indicates an increase of 126% from the prior-year quarter’s levels.

Mueller Water Products MWA currently has an Earnings ESP of +17.65% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter’s reported figure. The consensus estimate has gone up 8% over the past 60 days.

The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.

O-I Glass Inc. OI currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 3% in the past 60 days and is currently pegged at 61 cents per share. The projection indicates 5.2% growth from the year-earlier reading.

The Zacks Consensus Estimate for OI’s quarterly revenues is pegged at $1.71 billion, which indicates an improvement of 6.27% from the prior-year reported number. OI has a trailing four-quarter earnings surprise of 17.4%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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