The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dover met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins expanded, net margins dropped.
Dover booked revenue of $2.01 billion. The 13 analysts polled by S&P Capital IQ looked for revenue of $2.00 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $1.83 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 $1.09. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.07 per share. GAAP EPS of $0.89 for Q4 were 40% lower than the prior-year quarter's $1.49 per share. (The prior-year quarter included $0.44 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.4%, 80 basis points worse than the prior-year quarter. Operating margin was 15.1%, 80 basis points better than the prior-year quarter. Net margin was 7.9%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $8.76 billion. The average EPS estimate is $5.24.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 288 members out of 300 rating the stock outperform, and 12 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give Dover a green thumbs-up, and 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 $70.22.
Looking for alternatives to Dover? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." 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. TMFDisclosureHere