Dover Corporation DOV has reported first-quarter 2024 adjusted earnings per share (EPS) from continuing operations of $1.95, beating the Zacks Consensus Estimate of $1.88. The bottom line increased 1% year over year.

On a reported basis, Dover has delivered an EPS of $4.52 in the quarter compared with $1.63 in the year-ago quarter.

Total revenues in the first quarter increased 0.7% year over year to around $2.1billion. The top line surpassed the Zacks Consensus Estimate of $2 billion. Organic growth was a negative 1.3% in the quarter.

Dover Corporation Price, Consensus and EPS Surprise

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

Costs & Margins

Cost of sales rose 0.3% year over year to $1.3 billion in the reported quarter. Gross profit increased 1.4% year over year to $757 million. The gross margin was 36.2% compared with the year-ago quarter’s 35.9%.

Selling, general and administrative expenses rose 7.2% to $463 million from the prior-year quarter. Adjusted EBITDA increased 0.1% year over year to $450.5 million. The adjusted EBITDA margin was 21.5% in the quarter compared with the prior-year quarter’s 21.7%.

Segmental Performance

The Engineered Products segment’s revenues rose 9.2% year over year to $543 million in the quarter. The reported figure surpassed our expectation of $483 million. The segment’s adjusted EBITDA increased 20.8% year over year to $110 million. The figure beat our estimate of $88 million.

The Clean Energy & Fueling segment’s revenues were $445 million compared with the prior-year quarter’s $431 million. The figure topped our estimate of $416 million. The segment’s adjusted EBITDA was $77.5 million, down from the prior-year quarter’s $81 million. The figure missed our estimate of $83 million.

The Imaging & Identification segment’s revenues moved down 2.2% year over year to $277 million. The reported figure missed our expectation of $282 million. The segment’s adjusted EBITDA improved 2.6% year over year to $74 million. The figure topped our estimate of $64 million.

The Pumps & Process Solutions segment’s revenues increased 12.5% year over year to $466 million in the first quarter and topped our estimate of $414 million. The adjusted EBITDA in the segment totaled $131 million compared with the year-ago quarter’s $126 million. The reported figure beat our projection of $121 million.

The Climate & Sustainability Technologies segment’s revenues fell to $364 million from $455 million in the year-earlier quarter. We predicted revenues of $486 million for this segment. The segment’s adjusted EBITDA totaled $58 million compared with $80 million in first-quarter 2023. The figure lagged our estimate of $91 million.



Bookings

Dover’s bookings at the end of the first quarter were worth $2.21 billion compared with the prior-year quarter’s $2.12 billion. Total bookings surpassed our estimate of $2.12 billion.

Financial Position

The company had a free cash flow of $122 million in the first quarter compared with $193 million in the year-ago quarter. Cash flow from operations amounted to $167 million in the quarter under review compared with the prior-year quarter’s $241 million.

Outlook

Dover expects adjusted EPS between $9.00 and $9.15 for 2024, modified from the previously announced $8.95-$9.15. It anticipates year-over-year revenue growth of 2-4%.

Price Performance

DOV shares have gained 19.5% in the past year compared with the industry’s growth of 33.1%. Zacks Investment Research

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Zacks Rank & Stocks to Consider

Dover currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies AIT, Chart Industries, Inc. GTLS and Cadre Holdings, Inc. CDRE. AIT currently sports a Zacks Rank #1 (Strong Buy), and GTLS and CDRE carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.49 per share, which indicates year-over-year growth of 7.8%. Estimates have moved north by 1% in the past 60 days. The company’s shares have gained 35.4% in the past year.

The Zacks Consensus Estimate for Chart Industries’ 2024 earnings is pegged at $11.98 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 93.6%. The company has a trailing four-quarter average earnings surprise of 75.9%. GTLS shares have gained 12.2% in the past year.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.18 per share. The consensus estimate for 2024 earnings has moved 7% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 53.1% in the past year.

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