Dover to Report Q4 Earnings: What's in the Cards for the Stock?

Dover Corporation DOV is set to release fourth-quarter 2024 results on Jan. 30, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for DOV’s revenues is pegged at $1.98 billion, indicating a 6.2% decline from the year-ago figure.The consensus estimate for earnings is pegged at $2.08 per share, which indicates a year-over-year decline of 15.1%. The estimate has remained unchanged in the past 60 days. Image Source: Zacks Investment ResearchDover’s Earnings Surprise HistoryDOV’s earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, as seen in the chart below. DOV has an average earnings surprise of 4%.Image Source: Zacks Investment ResearchWhat the Zacks Model Unveils for DOV StockOur model predicts an earnings beat for Dover this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Earnings ESP: Dover has an Earnings ESP of +0.10%.Zacks Rank: DOV currently carries a Zacks Rank of 3.Factors to Note Regarding Dover’s Q4 PerformanceDOV has been witnessing robust bookings across its segments on strong demand and shipment levels, which are likely to have benefited its fourth-quarter performance. Gains from the recent acquisitions are expected to aid results. However, the impact of divestitures and headwinds in European heat pumps and can-making equipment businesses are expected to have negated these gains. The company has also been facing reduced volumes in its aerospace & defense business.The company’s margins have been gaining from a robust volume, an improved price-cost spread and tight cost controls for a while. However, the negative impacts of supply-chain constraints and input inflation have been acting as headwinds. These are likely to reflect on DOV’s earnings results .Q4 Segment Projections for DoverIn the Engineered Products segment, ongoing strong demand in the waste handling and vehicle service businesses and improved production performance are expected to have been offset by weak demand in the aerospace and defense business. We expect organic sales to have a positive impact of 11.8% on the segment’s revenues, which will be somewhat offset by a 17.3% impact from the divestiture of the De-Sta-Co business (that occurred in the first quarter of 2024). Our estimate for the segment’s revenues is pegged at $310 million, indicating a decline of 5.5% from the prior-year quarter’s actual. The estimate for the Engineered Products segment’s adjusted EBITDA is pegged at $65.9 million, indicating a 9% decline from the last year’s quarter. The Clean Energy and Fueling Solutions segment is likely to have gained from strong demand in North America in the above-ground retail fueling equipment and the clean energy solutions business. We expect the segment’s revenues to be $473 million, indicating growth of 5.3% from the year-earlier actual. Organic growth is projected at 1.8% and acquisitions are expected to contribute 3.8% to the sales growth. Unfavorable impacts of currency translation are expected to have a negative 0.3% impact on the segment’s results. The estimate for the Clean Energy and Fueling Solutions segment’s adjusted EBITDA is pegged at $98 million, indicating a 13% increase from the year-ago quarter, driven by pricing actions and productivity initiatives.The Imaging & Identification segment's results are expected to reflect strong demand for marking and coding equipment in the United States and Europe. We expect the segment’s organic sales to be 2.9% for the quarter. Acquisitions are expected to add 0.5%, which is likely to be offset by an unfavorable 1.2% impact of foreign currency. Our prediction for the segment’s revenues is $292 million, indicating a 2% rise from the prior-year quarter. We project the segment’s adjusted EBITDA to be $80 million, which is 4% higher than the fourth-quarter 2023 figure, aided by pricing initiatives and cost controls.Dover’s Pumps & Process Solutions segment’s results are likely to reflect positive demand trends in thermal connectors and precision components and ongoing recovery in biopharma. However, weak demand in the polymer processing equipment business is likely to have offset some of these gains. Our model predicts year-over-year growth of 3.7% for the segment’s organic sales. The contribution from the FW Murphy acquisition is expected to be around 5.8% while currency translation is anticipated to have a year-over-year positive impact of 0.2%.We anticipate the segment’s revenues to increase 9.8% year over year to $488.3 million. The consensus mark for the segment’s fourth-quarter adjusted EBITDA is pegged at $148.3 million, implying 11% year-over-year growth. In the Climate and Sustainability Technologies segment, ongoing momentum in demand in food retail systems is expected to have been offset by headwinds in beverage can-making and European and APAC heat exchangers. We anticipate the segment’s organic sales to be up 0.8% year over year. Our model predicts acquisitions to have a year-over-year negative impact of 1.7% on the top line. This reflects the sale of a minority interest in the walk-in cooler business. We expect quarterly revenues to be $395.6 million, implying a 0.7% decline from the year-earlier figure. The estimate for the segment’s adjusted EBITDA is pegged at $74 million compared with $78.6 million reported in the fourth quarter of 2023.Dover Stock’s Price PerformanceDover’s shares have gained 32.8% in the past year compared with the industry’s 15.2% growth.Image Source: Zacks Investment ResearchOther Stocks That Warrant a LookHere are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.Flowserve Corporation FLS is expected to release its fourth-quarter 2024 results soon. It has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for FLS’ earnings is pegged at 77 cents per share, which indicates year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 10.8%.Northwest Pipe Company NWPX, expected to release its fourth-quarter 2024 results soon, has an Earnings ESP of +9.49% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for Northwest Pipe’s fourth-quarter 2024 earnings is pegged at 91 cents per share, indicating year-over-year growth of 68.5%. It has a trailing four-quarter average surprise of 32.5%.Allegion plc ALLE, expected to release earnings soon, currently has an Earnings ESP of +1.34% and a Zacks Rank of 3.The consensus estimate for Allegion’s earnings for the fourth quarter of 2024 is pegged at $1.74 per share, indicating year-over-year growth of 3.6%. ALLE has a trailing four-quarter average surprise of 9.9%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Northwest Pipe Company (NWPX): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks