The 10-second takeaway
For the quarter ended June 30 (Q2), Dover beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Dover chalked up revenue of $2.23 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $2.19 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.36. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.29 per share. Non-GAAP EPS of $1.36 for Q2 were 18% higher than the prior-year quarter's $1.15 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $1.91 for Q2 were 65% higher than the prior-year quarter's $1.16 per share. (The prior-year quarter included $0.01 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%, 40 basis points better than the prior-year quarter. Operating margin was 15.7%, 30 basis points better than the prior-year quarter. Net margin was 14.8%, 490 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.30 billion. On the bottom line, the average EPS estimate is $1.49.
Next year's average estimate for revenue is $8.71 billion. The average EPS estimate is $5.24.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 300 members out of 312 rating the stock outperform, and 12 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 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 $85.16.
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