Dover Probably Undervalued, But Where's The Spark?
Stephen Simpson, CFA
Stephen Simpson, CFA
Dover On The Defensive
Stephen Simpson, CFA
Stephen Simpson, CFA
Yesterday, 7:58 AM
- April monthly performance was: +0.8%
- $0.21 in dividends were paid in April
- Top 10 Holdings as of 3/31/2016: Nucor Corp (NUE): 2.38%, Emerson Electric Co (EMR): 2.24%, Illinois Tool Works Inc (ITW): 2.22%, W.W. Grainger Inc (GWW): 2.22%, Genuine Parts Co (GPC): 2.22%, Pentair PLC (PNR): 2.19%, Leggett & Platt Inc (LEG): 2.19%, McCormick & Co Inc Non-Voting (MKC): 2.17%, Air Products & Chemicals Inc (APD): 2.15%, Dover Corp (DOV): 2.15%
Thu, Apr. 21, 6:57 AM
Wed, Apr. 20, 5:30 PM
- ADS, ALK, AZZ, BANC, BBT, BHE, BIIB, BK, BX, CFG, CLS, COL, DAN, DGX, DHI, DHR, DOV, DST, ERIC, FAF, FCS, FITB, GM, GMT, HOMB, IMAX, JAKK, JCI, KCG, KEY, LAD, LAZ, LUV, MAN, MDSO, MDWD, NUE, NVR, NVS, PBCT, PHM, PII, POOL, PPG, PVTB, RS, SHW, SILC, SNA, SON, STC, SWK, SYNT, TCB, TRV, UA, UNP, USG, UTEK, VZ
Mon, Mar. 14, 6:09 PM
- Dover (NYSE:DOV) -2.1% AH after saying its oil and gas related markets have weakened, pushing the company's Q1 financial results "well below prior expectations."
- DOV says it is increasing its restructuring and cost management activities to help mitigate the impact of the historically weak market conditions.
- DOV says sales of its food and refrigeration equipment "remained very solid" in Q1.
Tue, Jan. 26, 8:47 AM
- Earnings from continuing operations of $136.6M vs. $171.8M in the prior year period. Adjusted EPS from continuing operations was $0.81 vs. $1.01 a year ago.
- "Fourth quarter and full year results continued to be impacted by tough business conditions, particularly in oil & gas markets," CEO Robert Livingston said. "Regarding 2016, we are reaffirming EPS to be in the range of $3.85-$4.05. This guidance reflects a lower revenue forecast driven by weaker oil & gas markets."
- Q4 results
Tue, Jan. 26, 7:02 AM
- Dover (NYSE:DOV): Q4 EPS of $0.81 beats by $0.06.
- Revenue of $1.69B (-14.6% Y/Y) beats by $20M.
Mon, Jan. 25, 5:30 PM
Thu, Jan. 7, 8:22 AM
- Dover (NYSE:DOV) has completed the previously announced acquisition of Tokheim's dispenser and system businesses, which will become part of OPW, a business unit within Dover's Fluids segment.
- The company expects the deal to add ~$0.07 to operating EPS in 2016 and $0.21 to operating EPS in 2017.
- Previously: Dover to buy fuel dispenser business for €425M (Sep. 08 2015)
Dec. 15, 2015, 4:45 PM
- Dover (NYSE:DOV) -1.9% AH after issuing downside guidance for FY 2015, seeing EPS of $3.62 from prior guidance of $3.73-$3.80, which may not be comparable to $3.74 analyst consensus estimate.
- DOV cites weaker market conditions and internal restructuring for the reduced outlook; guidance includes ~$0.07/share in acquisition-related costs and incremental restructuring.
- DOV issues in-line guidance for FY 2016, seeing EPS of $3.85-$.05 vs. $4.02 analyst consensus, based on expected full-year revenue growth of 2%-5%, comprised of a flat to 3% decline in organic revenue, acquisition growth of 7% and a 2% impact from currency.
Nov. 20, 2015, 11:30 AM
- Market growth remains challenging whether there is an industrial recession or not, so investors should focus on stocks with strong end markets, particularly Allegion (ALLE +0.3%) and Danaher (DHR +0.5%), Bernstein's Steven Winoker says.
- Other stocks in a lower but still generally favorable tier include General Electric (GE +0.8%), Honeywell (HON +0.9%), Ingersoll-Rand (IR +0.9%) and 3M (MMM +0.7%), as these companies are exposed to favorable end markets but also to meaningfully weak markets, the analyst says.
- Aside from their portfolio transformations, DHR and GE have benefited and should continue to benefit from their above-average growth profiles in the current low-growth environment, Winoker says.
- Energy-heavy Dover (DOV +0.2%), Pentair (PNR +0.4%) and Emerson Electric (EMR +0.2%) remain the most challenged, according to Winoker, while Eaton (ETN +1.1%), Rockwell Automation (ROK +0.5%) and Tyco (TYC -0.2%) have a mix of tailwinds and headwinds, with the former more challenged on hydraulics/trucks and the latter two on energy.
- Winoker sees limited downside for DOV, which is highly linked to crude oil prices but is performing well in the ~80% of its portfolio not linked to oil.
- Earlier: Low expectations are no longer enough for multi-industry stocks, analyst says (Nov. 19)
Oct. 22, 2015, 8:49 AM
Oct. 20, 2015, 7:00 AM
- Dover (NYSE:DOV): Q3 EPS of $1.14 beats by $0.07.
- Revenue of $1.79B (-14.4% Y/Y) misses by $20M.
Oct. 19, 2015, 5:30 PM
Sep. 8, 2015, 7:57 AM
- Dover Corp. (NYSE:DOV) agrees to acquire part of French gasoline station equipment provider Tokheim Group's fuel dispenser and systems businesses for €425M ($473.5M) to expand its fluids division.
- Tokheim's sales and service divisions are not a part of the deal and will become a stand-alone company remaining with current owners Motion Equity Partners.
- DOV expects the deal to add ~$0.07 to operating EPS in 2016 and $0.21 to operating EPS in 2017.
Sep. 3, 2015, 3:12 PM
- How bad a year has it been for multi-industry stocks? Year-to-date underperformance relative to the S&P 500 is among the poorest in a decade and has gotten worse in recent weeks, say Goldman analyst Joe Ritchie and team. The negative news is no secret: Broad industrial de-stock, softening oil capex, the strong dollar, and the troubles in China. Because of this, the team remains Neutral on the beaten-up sector, but does have a few names investors should steer clear of:
- With de-stock keeping U.S. industrial growth in a "headlock," the implications are particularly negative for Sell-rated Emerson Electric (NYSE:EMR), WW Grainger (NYSE:GWW), and Neutral-rated Parker-Hannifin (NYSE:PH) and Rockwell Automation (NYSE:ROK).
- With oil capex going from bad to worse, and oil lower for longer, the Street is underestimating the impact of price declines for Dover (NYSE:DOV), Emerson, and Flowserve (NYSE:FLS). On the flip side, lower input costs should be a boon to Buy-rated Illinois Tool Works (NYSE:ITW) and Neutral-rated 3M (NYSE:MMM).
- The weaker China backdrop is most negative for Emerson, and Neutral-rated Eaton (NYSE:ETN) and Colfax (NYSE:CFX). Though Buy-rated Honeywell (NYSE:HON) and ITT Corp (NYSE:ITT) have exposure, growth is more insulated due to their market share gains.
- Source: Barron's Ben Levinsohn
- ETFs: XHB, ITB, XLI, PHO, IYT, ITA, VIS, PPA, XTN, XAR, FIDU, PKB, IYJ, FXR, UXI, PRN, RGI, SIJ, PSCI, AIRR
Aug. 31, 2015, 7:40 AM
- Bernstein upgrades Dover (NYSE:DOV) to Outperform from Market Perform, stating that the company's "oil related headwinds" have bottomed, its non-energy businesses should rebound, and its free cash flow generation is "solid."
- The research firm also believes that Dover's restructuring will bolster its margins, despite the stock falling 31% over the past year. Price target has been raised to $73 from $70.
Dover Corp. manufactures and offers innovative equipment, components, and specialty systems. It's also provides supporting engineering, testing, and other similar services. It operates its business through four segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. The... More
Sector: Industrial Goods
Industry: Diversified Machinery
Country: United States
Other News & PR