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Dover (DOV) Earnings Beat Estimates in Q4, Revenues Rise Y/Y

Dover Corporation DOV has reported fourth-quarter 2022 adjusted earnings per share (EPS) from continuing operations of $2.16, beating the Zacks Consensus Estimate of $2.15. The bottom line increased 21% year over year. Healthy demand and robust backlog rates, coupled with improving price-cost dynamics helped offset the impacts of the ongoing input shortages, inflationary cost pressure and foreign currency translation.

On a reported basis, Dover delivered earnings of $1.87 per share in the quarter, down 25% year over year.

Total revenues in the fourth quarter increased 7.5% year over year to $2,139 million. The top line surpassed the Zacks Consensus Estimate of $2,108 million. Organic growth was 9% in the quarter.

Costs and Margins

Cost of sales rose 8.3% year over year to $1,373 million in the reported quarter. Gross profit was up 6.2% year over year to $766 million. The gross margin was 35.8% compared with the year-ago quarter’s 36.2%.

Selling, general and administrative expenses were down 5.7% to $414 million from the prior-year quarter. Adjusted EBITDA increased 15% year over year to $484 million. The adjusted EBITDA margin was 22.6% in the quarter compared with the prior-year quarter’s 21.2%.

Dover Corporation Price, Consensus and EPS Surprise

 

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Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote

Segmental Performance

The Engineered Products segment’s revenues were up 13.4% year over year to $525 million in the quarter. The segment’s adjusted EBITDA increased 57.1% year over year to $110 million.

The Clean Energy & Fueling segment’s revenues were $462 million compared with the prior-year quarter’s $411 million. The segment’s adjusted EBITDA was $98 million, up 21.3% from the prior-year quarter’s $80 million.

The Imaging & Identification segment’s revenues inched up 0.3% year over year to $293 million. The segment’s adjusted EBITDA rose 10.8% year over year to $77 million.

The Pumps & Process Solutions segment’s revenues decreased 6.5% year over year to $418 million in the fourth quarter. The adjusted EBITDA of the segment totaled $131 million, an 18.1% drop from the year-ago quarter’s figure of $160 million.

The Climate & Sustainability Technologies segment’s revenues increased to $442 million from $376 million reported in the year-ago quarter. The segment’s adjusted EBITDA totaled $68 million, a 61.9% improvement from the $42 million reported in fourth-quarter 2021.

Bookings and Backlog

Dover’s bookings at the end of the fourth quarter were worth $1.92 billion compared with the prior-year quarter’s $2.38 billion. Backlog decreased 6.8% year over year to $3.02 billion at the end of the reported quarter.

Financial Position

The company generated free cash flow of $284 million in the fourth quarter of 2022 compared with the year-ago quarter’s $277 million. Cash flow from operations amounted to $339 million in the quarter under review compared with the prior-year quarter’s $327 million.

2022 Performance

Dover reported an adjusted EPS of $8.45 in 2022 compared with $7.63 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $8.44. Including one-time items, the bottom line was at $7.42, down 4% from the $7.74 reported in 2021.

Sales were up 7.6% year over year to $8.5 billion from the prior-year figure of $7.9 billion. The top line surpassed the Zacks Consensus Estimate of $8.48 billion.

Outlook

Dover expects adjusted EPS between $8.85 and $9.05 for 2023. It expects revenue growth of 3-5%.

Price Performance

Dover’s shares have declined 15.7% in the past year compared with the industry’s fall of 3.9%.

 

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Zacks Rank and Stocks to Consider

Dover currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, O-I Glass, Inc. OI, and Deere & Company DE. KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 9% in the past 60 days. KNBE’s shares have gained 4% in a year.

O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 41% in the last year.

The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.

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KnowBe4, Inc. (KNBE) : Free Stock Analysis Report

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