Dover Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Dover (NYSE:DOV) will unveil its latest earnings on Wednesday, October 17, 2012. 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.

Dover Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.28 per share, a rise of 6.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.34. Between one and three months ago, the average estimate moved down. It also has dropped from $1.31 during the last month. Analysts are projecting profit to rise by 10.1% compared to last year’s $4.69.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of $1.15 a share versus the estimate of profit of $1.14 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit fell 14.3% to $214.1 million ($1.15 a share) from $249.8 million ($1.32 a share) the year earlier, but exceeded analyst expectations. Revenue remained stable at $2.16 billion.

Stock Price Performance: Between September 13, 2012 and October 11, 2012, the stock price dropped $4.54 (-7.6%), from $59.79 to $55.25. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 7.1% (+$3.79) over that span. It saw one of its worst periods between June 19, 2012 and June 28, 2012 when shares fell for eight straight days, dropping 8.1% (-$4.56) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.26 billion in revenue this quarter, a rise of 2.7% from the year-ago quarter. Analysts are forecasting total revenue of $8.6 billion for the year, a rise of 8.2% from last year’s revenue of $7.95 billion.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 40.3% in the fourth quarter of the last fiscal year and 0.6% in the first quarter before dropping in the second quarter.

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 5.3% in the the first quarter after dropping in the second quarter.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.54 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.69 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.7% to $1.26 billion while assets decreased 1% to $3.21 billion.

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

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