Dover Gears Up to Report Q1 Earnings: What to Expect From the Stock?

Dover Corporation DOV is set to release first-quarter 2025 results on April 24, before the opening bell.The Zacks Consensus Estimate for DOV’s revenues is pegged at $1.88 billion, indicating a 9.9% decline from the year-ago reported figure.The consensus estimate for earnings is pegged at $2.01 per share, which implies year-over-year growth of 3.1%. The estimate has moved down 0.5% in the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)  Image Source: Zacks Investment Research Dover’s Solid Earnings Surprise HistoryDOV’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, as seen in the chart below. Dover has an average earnings surprise of 5.3%.  Image Source: Zacks Investment Research What the Zacks Model Unveils for DOV StockOur model does not predict 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. That is not the case here, as you can see below.You can uncover the best stocks before they are reported with our Earnings ESP Filter.Earnings ESP: Dover has an Earnings ESP of -0.41%.Zacks Rank: DOV currently carries a Zacks Rank of 3.Factors to Note Regarding Dover’s Q1 PerformanceDOV has been witnessing robust bookings across its segments on strong demand and shipment levels, which are likely to have benefited its first-quarter performance. Gains from the recent acquisitions are expected to have aided. However, the impacts 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 and defense business.Dover’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 get reflected in DOV’s earnings results.Q1 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 1.5% on the segment’s revenues, which will somewhat be offset by a 15.6% 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 $288 million, indicating a decline of 13.9% from the prior-year quarter’s actual.The estimate for the Engineered Products segment’s adjusted EBITDA is pegged at $58.9 million, indicating a 12.5% decline from the prior-year 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 $469 million, indicating growth of 5.4% from the year-earlier actual. Organic growth is projected at 3.1% and acquisitions are expected to contribute 2.6% to sales growth. Unfavorable impacts of currency translation are expected to have a negative 0.2% impact on the segment’s results.The estimate for the Clean Energy and Fueling Solutions segment’s adjusted EBITDA is pegged at $93 million, indicating a 20.1% increase from the year-ago quarter’s actual, driven by pricing actions and productivity initiatives.The Imaging and 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 0.5% for the quarter. Acquisitions are expected to add 0.5%, which is likely to be offset by an unfavorable 1.3% impact of foreign currency. Our prediction for the segment’s revenues is $276 million, indicating a 0.3% dip from the prior-year quarter’s actual.We project the segment’s adjusted EBITDA to be $75 million, which is 2.3% higher than the first-quarter 2024 reported figure, aided by pricing initiatives and cost controls.Dover’s Pumps and 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 2.8% for the segment’s organic sales. The contribution from the FW Murphy acquisition is expected to be 3.3%, while currency translation is anticipated to have a year-over-year positive impact of 0.2%.We anticipate the segment’s revenues to increase 6.3% year over year to $495 million. The consensus mark for the segment’s first-quarter adjusted EBITDA is pegged at $141 million, implying 8% 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 down 1.2% year over year. Our model predicts acquisitions to have a year-over-year positive impact of 0.3% on the top line. We expect quarterly revenues to be $360 million, implying a 1.2% decline from the year-earlier figure. The estimate for the segment’s adjusted EBITDA is pegged at $65 million, whereas it reported $58 million in the first quarter of 2024.DOV Stock’s Price PerformanceDover’s shares have lost 7.3% in the past year compared with the industry’s 14.4% decline.  Image Source: Zacks Investment Research Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.Tenaris S.A. TS is expected to release first-quarter 2025 results on April 30. It has an Earnings ESP of +17.98% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Tenaris’ earnings is pegged at 89 cents per share, which indicates a year-over-year decline of 29.9%. TS has a trailing four-quarter average surprise of 10.9%.Illinois Tool Works Inc. ITW, anticipated to release its first-quarter 2025 on April 30, has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for Illinois Tool Works’ first-quarter 2025 earnings is pegged at $2.34 per share, suggesting a year-over-year decline of 4.1%. ITW has a trailing four-quarter average surprise of 3.6%.Emerson Electric Co. EMR, expected to release earnings soon, currently has an Earnings ESP of +1.96% and a Zacks Rank of 3.The consensus estimate for Emerson Electric’s earnings for the second quarter of fiscal 2025 is pegged at $1.42 per share, indicating year-over-year growth of 4.4%. EMR has a trailing four-quarter average surprise of 4.3%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Tenaris S.A. (TS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks