The 10-second takeaway
For the quarter ended March 31 (Q1), Dover beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased.
Gross margin shrank, operating margin grew, and net margin contracted.
Dover notched revenue of $2.06 billion. The 11 analysts polled by S&P Capital IQ hoped for a top line of $2 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.05. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $1.05 for Q1 were 1.9% higher than the prior-year quarter's $1.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.8%, 150 basis points worse than the prior-year quarter. Operating margin was 14.5%, 20 basis points better than the prior-year quarter. Net margin was 9.5%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $8.76 billion. The average EPS estimate is $4.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 273 members rating the stock outperform and 16 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Dover a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dover is outperform, with an average price target of $70.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Dover. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Dover to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.