Loading...
•
Sep 30, 2023
Dover Q3 2023 Earnings Report
Dover's financial performance was encouraging, with margin performance offsetting negative product mix through productivity and disciplined pricing.
Key Takeaways
Dover reported Q3 2023 revenue of $2.2 billion, in line with the prior year. GAAP net earnings increased 1% to $290 million, with GAAP diluted EPS up 3% to $2.06. Adjusted net earnings rose 2% to $331 million, and adjusted diluted EPS increased 4% to $2.35.
Consolidated segment margin reached a record-high level, driven by cost containment and solid execution.
Revenue and order rates improved sequentially due to improving activity across several end markets.
Backlog continued to normalize as lead times improved and longer-dated orders were shipped.
Portfolio moves, including the acquisition of FW Murphy and the sale of De-Sta-Co, continued the shift towards higher-growth and higher-return businesses.
Dover
Dover
Dover Revenue by Segment
Revenue by Segment
Engineered Products Revenue
CapyFin.comClean Energy & Fueling Revenue
CapyFin.comImaging & Identification Revenue
CapyFin.comPumps & Process Solutions Revenue
CapyFin.comClimate & Sustainability Tech Revenue
CapyFin.com Forward Guidance
Dover expects to generate GAAP EPS in the range of $7.51 to $7.61 (adjusted EPS of $8.75 to $8.85), based on approximately flat full year revenue growth (all-in and organic).
Challenges Ahead
- Biopharma demand and automotive production curtailment are expected to be headwinds.
- Higher carrying costs of channel inventory due to higher interest rates will weigh on near-term volumes.
- Elevated transaction and integration costs are expected in Q4 related to recent and ongoing deal activity.
- Aims to optimize pricing, margin, and cash flow generation instead of maximizing volume in Q4.
- Shifting to a more conservative outlook for the remainder of the year to reflect changes in certain market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income