NYSE$DOV

Dover Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Dover's financial performance was encouraging, with margin performance offsetting negative product mix through productivity and disciplined pricing.

Dover reported Q3 2023 revenue of $2.2 billion, in line with the prior year. GAAP net earnings increased 1% to $290 million, with GAAP diluted EPS up 3% to $2.06. Adjusted net earnings rose 2% to $331 million, and adjusted diluted EPS increased 4% to $2.35.

  • Consolidated segment margin reached a record-high level, driven by cost containment and solid execution.
  • Revenue and order rates improved sequentially due to improving activity across several end markets.
  • Backlog continued to normalize as lead times improved and longer-dated orders were shipped.
  • Portfolio moves, including the acquisition of FW Murphy and the sale of De-Sta-Co, continued the shift towards higher-growth and higher-return businesses.

Headline financials

Total Revenue

$2.15B

Previous: $2.16B-0.2%
EPS (adj)

$2.35

Previous: $2.26+4.0%
Bookings

$2.01B

Previous: $2.06B-2.8%
Capital Expenditures

-$132M

Previous: -$166M+20.8%
Free Cash Flow

$158M

Previous: $120M+31.8%
Net Income

$290M

Previous: $286M+1.3%
Operating Income

$373M

Previous: $370M+0.6%
Gross Profit

$793M

Previous: $773M+2.6%
Cash & Equivalents

$284M

Previous: $306M-7.3%
Total Assets

$10.8B

Previous: $10.7B+1.1%
Stock-Based Comp

$6.69M

Previous: $6.33M+5.7%

Revenue & EPS history

Dover · Revenue · Quarterly

$2.15B

Q3 2023-0.2%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Dover · $2.15B total across 5 segments · Q3 2023

  • Engineered Products
    $504M-2.4%
  • Climate & Sustainability Tech
    $476M+2.9%
  • Clean Energy & Fueling
    $467M+0.6%
  • Pumps & Process Solutions
    $431M-0.5%
  • Imaging & Identification
    $276M-2.2%

Forward guidance

Dover expects to generate GAAP EPS in the range of $7.51 to $7.61 (adjusted EPS of $8.75 to $8.85), based on approximately flat full year revenue growth (all-in and organic).

Headwinds

  • Biopharma demand and automotive production curtailment are expected to be headwinds.
  • Higher carrying costs of channel inventory due to higher interest rates will weigh on near-term volumes.
  • Elevated transaction and integration costs are expected in Q4 related to recent and ongoing deal activity.
  • Aims to optimize pricing, margin, and cash flow generation instead of maximizing volume in Q4.
  • Shifting to a more conservative outlook for the remainder of the year to reflect changes in certain market conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.9%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.7%

Avg return

30 days after

58%

41 / 71 earnings

Positive

+12.1%

Q4 2018

Best reaction

-8.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.3%+3.7%-2.9%
Q4 2025-3.4%+2.7%+9.5%
Q3 2025+8.2%+7.2%+9.5%
Q2 2025-1.9%-1.7%-5.4%
Q1 2025+2.0%+2.3%+6.9%
Q4 2024+4.1%+2.8%+0.7%
Q3 2024-2.5%+0.1%+6.8%
Q2 2024+5.0%+4.6%+4.7%
Q1 2024+5.1%+4.6%+7.4%
Q4 2023+6.0%+7.4%+11.7%
Q3 2023-2.8%-4.1%+3.5%
Q2 2023-3.5%-4.2%-7.1%
Q1 2023-0.6%+0.7%-5.8%
Q4 2022+9.3%+11.4%+5.6%
Q3 2022+2.9%+4.9%+14.9%
Q2 2022+2.3%+1.2%+9.7%
Q1 2022-8.1%-10.6%-15.9%
Q4 2021-1.7%-0.1%-6.4%
Q3 2021+1.2%+1.5%+5.9%
Q2 2021+8.0%+8.1%+13.5%
Q1 2021+6.0%+5.5%+5.4%
Q4 2020-2.1%+0.3%+3.6%
Q3 2020+0.9%+3.1%+10.6%
Q2 2020+2.2%+2.7%+6.2%
Q1 2020+0.4%+5.8%+5.7%
Q4 2019-2.2%+0.1%-11.7%
Q3 2019+6.7%+8.7%+14.2%
Q4 2018+12.1%+10.6%+14.2%
Q3 2018+0.2%+0.5%+6.6%
Q2 2018+8.2%+6.8%+13.2%
Q1 2018-1.5%-4.6%+4.1%
Q4 2017+2.4%-0.4%-5.6%
Q3 2017+1.5%+2.5%+0.7%
Q2 2017-2.7%-1.1%-1.6%
Q1 2017+0.1%+2.5%+4.9%
Q4 2016-2.1%-4.6%-1.7%
Q3 2016+1.0%+2.1%+3.9%
Q2 2016-2.4%-1.0%+1.8%
Q1 2016-0.7%
Q4 2015+4.2%
Q3 2015+7.2%
Q2 2015-2.6%
Q1 2015-1.5%
Q4 2014-3.3%
Q3 2014+3.4%
Q2 2014-0.3%
Q1 2014+3.2%
Q4 2013-3.5%
Q3 2013+0.7%
Q2 2013+6.1%
Q1 2013-5.0%
Q4 2012-2.0%
Q3 2012+1.3%
Q2 2012+4.6%
Q1 2012-4.1%
Q4 2010+1.0%
Q4 2011+1.0%
Q3 2011+0.4%
Q2 2011+0.4%
Q1 2011+3.4%
Q3 2010-2.5%
Q2 2010+5.4%
Q1 2009+6.7%
Q1 2010-0.3%
Q4 2009+1.2%
Q4 2007+1.2%
Q3 2009-3.8%
Q3 2008-3.8%
Q4 2008-5.5%
Q2 2009-5.5%
Q2 2008-5.5%

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