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Jun 30, 2023
Dover Q2 2023 Earnings Report
Dover's second quarter results met expectations, with strong performance in high-growth businesses offset by transient manufacturing and shipment disruptions in the vehicle services group.
Key Takeaways
Dover reported Q2 2023 revenue of $2.1 billion, a decrease of 3% (-3% organic). GAAP net earnings of $242 million decreased 16%, and GAAP diluted EPS of $1.72 was down 14%. On an adjusted basis, net earnings of $288 million decreased 7% and adjusted diluted EPS of $2.05 was down 4%.
Outperformance in high-growth businesses was offset by transient manufacturing and shipment disruptions in the vehicle services group caused by an ERP system upgrade, reducing top line and EPS by approximately $50 million and $0.10, respectively.
Order activity in shorter-cycle end markets remained solid amid normalizing lead times, and long-cycle and secular-growth-exposed businesses maintained strong shipment levels.
Order backlog continued to normalize but remains elevated.
Company expects roll forward of cost reduction actions, demand seasonality and backlog shipment timing to drive sequential and comparable operating margin improvement in the second half.
Revenue by Segment
Forward Guidance
In 2023, Dover expects to generate GAAP EPS in the range of $7.68 to $7.83 (adjusted EPS of $8.85 to $9.00), based on full year revenue growth of 2% to 4% (all-in and organic).
Positive Outlook
- Underlying demand remains good across the portfolio.
- A significant volume of business is already in the backlog.
- Flexible business model.
- Proven execution playbook.
- Revenue growth of 2% to 4%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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