Earnings Beat: Dover Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Investors in Dover Corporation (NYSE:DOV) had a good week, as its shares rose 2.3% to close at US$185 following the release of its second-quarter results. The result was positive overall - although revenues of US$2.2b were in line with what the analysts predicted, Dover surprised by delivering a statutory profit of US$2.04 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Dover

Taking into account the latest results, Dover's 15 analysts currently expect revenues in 2024 to be US$8.67b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$10.87, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$8.63b and earnings per share (EPS) of US$10.79 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$201, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Dover, with the most bullish analyst valuing it at US$223 and the most bearish at US$186 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Dover's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. Compare this to the 172 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.5% per year. Factoring in the forecast slowdown in growth, it looks like Dover is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Dover going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Dover (1 is a bit unpleasant) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com