Dover Updates 2012 & 2013 Outlook - Analyst Blog
14 Dezember 2012 - 7:00PM
Zacks
Dover Corporation (DOV) recently updated its
outlook for fiscal 2012 and 2013 and highlighted its growth
initiatives for the next three years.
Dover has trimmed its fiscal 2012 EPS guidance to a range of
$4.36 to $4.46 from the earlier guidance of $4.55-$4.65 per share.
The reduction of 19 cents stems from an 18 cents reduction from
discontinuing non-core businesses, 2 cents pertaining to cost
related to the recent Anthony acquisition, offset by a 1 cent
accretion from share repurchase activity in the fourth
quarter.
Compared with the prior-year adjusted earnings of $4.46 per
share, fiscal 2012 guidance represents an annual growth of 2% to
5%. Revenue is expected to be around $8.1 billion for the
year.
The company has also initiated guidance for fiscal 2013 with
earnings in the range of $5.05 to $5.35 per share. The midpoint of
fiscal 2013 guidance stands at $5.20 per share, up 18% from the
fiscal 2012 guidance’s midpoint of $4.41.
The guidance is based on organic revenue growth of 3% to 5%
and acquisition growth of 4%, leading to full-year revenue growth
of 7% to 9%. Segment margin is expected to expand 30 to 70 basis
points from 2012, driven by productivity benefits and continued
cost management.
The company is committed to achieving its targeted annual
organic sales growth of 4% to 6% in the next three years, aided by
accretive acquisitions. Including the Anthony acquisition, growth
rate is expected to be 5-7%. The company continues to focus on its
five key growth spaces – communication components, energy, product
ID, refrigeration and food equipment, and fluid solutions.
In 2012, these areas contributed to 77% of Dover’s revenue and
79% of operating earnings. The company expects to deliver segment
margin expansion of 50 basis points annually. Free cash flow is
expected to be around 10% of revenues and projected to reach the $1
billion mark in 2015.
The company also remains committed to returning cash to its
shareholders through dividends and share buybacks. The company has
a commendable record of raising dividends for the last 57
consecutive years.
Dover recently announced that its board has authorized an
additional $1 billion share repurchase program to be completed over
the next 12 to 18 months. Dover also announced its intent to divest
certain non-core businesses, which cater to the electronic assembly
and test markets.
Dover recently acquired Anthony International – a manufacturer
of glass doors for commercial refrigerators – for $602.5 million.
The acquisition will expand Dover’s product portfolio and enhance
its service offerings. Dover will also be able to leverage
Anthony's geographic footprint to grow its international
presence.
The acquisition adds significantly to its Engineered Systems
portfolio. In addition, growth initiatives and new product
offerings in the Fluids and Refrigeration spaces will add to the
growth profile of the Engineered Systems segment.
In the Communication Technologies segment, rising demand among
customers for improved audio products in their mobile devices
provide significant opportunities for growth and new market
penetration. In the Energy segment, the company sees significant
opportunities to expand globally in production and downstream
offerings. New product launches, expansion of core businesses and
printing positions will help drive growth in the Printing &
Identification segment.
New York-based Dover is an industrial conglomerate producing a
wide range of specialized industrial products and manufacturing
equipment. Dover competes with companies like Cooper
Industries plc (CBE), Ingersoll-Rand Plc
(IR) and Weatherford International Ltd. (WFT). The
company retains a short-term Zacks #3 Rank (Hold).
(CBE): ETF Research Reports
DOVER CORP (DOV): Free Stock Analysis Report
INGERSOLL RAND (IR): Free Stock Analysis Report
WEATHERFORD INT (WFT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Cooper (NYSE:CBE)
Historical Stock Chart
Von Aug 2024 bis Sep 2024
Cooper (NYSE:CBE)
Historical Stock Chart
Von Sep 2023 bis Sep 2024