Dover Corp Earnings: Snaps Strong Streak with Profit Drop

S&P 500 (NYSE:SPY) component Dover Corp (NYSE:DOV) reported its results for the second quarter. Dover operates a portfolio of manufacturing companies providing innovative components and equipment, specialty systems, and support services for a variety of applications to global customers.

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Dover Corp Earnings Cheat Sheet

Results: Net income for the machine industrial fell to $214.1 million ($1.15 per share) vs. $249.8 million ($1.32 per share) a year earlier. This is a decline of 14.3% from the year-earlier quarter.

Revenue: Rose 8.1% to $2.16 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dover Corp was about in line with expectations as the mean analyst estimate of $1.14 per share. Analysts were expecting revenue of $2.19 billion.

Quoting Management: Commenting on the second quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “Our strong positions in the energy, handset and refrigeration & food equipment markets enabled us to offset significant macroeconomic headwinds, most notably a weak European economy. While our second quarter results were less than we expected, business activity remains solid in most of our businesses as evidenced by our 0.99 book-to-bill.” “I was especially encouraged with increasing order rates for our new products connected with OEM handset launches. The continuation of this activity, coupled with our solid outlook for our businesses serving the oil production, downstream energy, fast moving consumer goods and U.S. industrial markets, give me confidence that we will be able to deliver a stronger second half of 2012.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 8 cents in the third quarter of the last fiscal year.

Last quarter’s profit decrease interrupts a two-quarter streak of profit increases. Net income rose 0.6% in the first quarter and 40.3% in the fourth quarter of the last fiscal year.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is $1.34 per share, a drop from $1.39. Over the past sixty days, the average estimate for the fiscal year has reached $4.75 abs per share, a decline from $4.92.

Competitors to Watch: Illinois Tool Works Inc., Danaher Corporation, Spectrum Control, Inc., Actuant Corporation, SPX Corporation, Gardner Denver, Inc., 3M Company, IDEX Corporation, The LGL Group, Inc., and AMETEK, Inc.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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