How Wall Street Views Dover Corporation’s 2Q16 Earnings

Shannon Black - Author

Jul. 1 2016, Published 3:46 p.m. ET

Dover Corporation to declare 2Q16 results

The diversified industrials (RGI) company Dover Corporation (DOV) is expected to declare its 2Q16 earnings on July 19, 2016. The earnings release will contain details on the company’s operating performance for the period between April 1–June 30, 2016.

Among its peers in the industrials sector (XLI), Danaher Corporation (DHR) will release its earnings on July 25, Illinois Tool Works (ITW) will release its results on July 20, and Ingersoll Rand (IR) will release its earnings on July 26.

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Market expectations for Dover’s 2Q16 results

Wall Street analysts estimate that Dover Corporation’s earnings per share will drop by 10.3% over 2Q15 to $0.87. A drop in earnings would likely be the result of the company’s sluggish Energy segment, as margins declined steadily in 2015.

The Energy segment’s margins fell from 12.1% in 1Q15 to 9.7% in 4Q15 and then to 4% in 1Q16. Margins for the Energy segment are expected to be around 8%, which is lower than the 2Q15 Energy segment margins of 11.2%.

Management’s guidance for 2016 results

In 1Q16, Dover Corporation’s (DOV) management downgraded its sales guidance, citing weaker fundamentals in the oil and gas markets (USO). For fiscal 2016, sales are now expected to decline by 2%–5% compared to the previous guidance of an increase in revenues by 1%–4%.

The company also guided its diluted EPS (earnings per share) from the previous $3.85–$4.05 range to the new range of $3.51–$3.66. Free cash flows have been maintained at 11% of total revenues.


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