Dover Corporation (DOV) on April 21, 2016 announced that for the first quarter ended March 31, 2016, revenue was $1.6 billion, a decrease of 5% from the prior year. Organic revenue declined 7% and foreign exchange had an unfavorable impact of 1%. Acquisition revenue, net of dispositions, provided 3% growth in the quarter. Earnings from continuing operations were $99.4 million, a decrease of 15% as compared to $117.2 million for the prior year period. Diluted earnings per share from continuing operations (“EPS”) for the first quarter ended March 31, 2016 were $0.64, compared to $0.72 EPS in the prior year period, representing a decrease of 11%. EPS from continuing operations for the first quarter of 2016 included discrete tax benefits of $0.05 and a gain on a disposition of $0.07. Excluding these items, adjusted EPS from continuing operations for the first quarter of 2016 was $0.52, a decrease of 28% over a comparative EPS of $0.72 in the prior year period. EPS for the first quarter ended March 31, 2016 and 2015 includes restructuring costs of $0.07 EPS and $0.10 EPS, respectively.
Robert A. Livingston, Dover’s President and Chief Executive Officer, said, “Our first quarter results were well below our initial expectations, driven by significant further reductions in activity and capital spending within our US oil & gas related end-markets. These conditions primarily impacted our Energy results, and to a lesser extent our Fluids results. The markets served by Engineered Systems and Refrigeration & Food Equipment remained solid, resulting in organic growth of 3% in each segment.
“In response to these historically weak oil & gas markets, we have lowered our full year revenue growth expectations for our Energy and Fluids segments, resulting in reduced EPS guidance for the full year. We have also increased our restructuring activities, and expect full year restructuring costs to be approximately $40 million, an increase of $20 million over our prior forecast. Substantially all of these actions and costs will occur by the end of the second quarter.
Dover Corporation earnings per share showed a decreasing trend of -18.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 391%.Analysts project EPS growth over the next 5 years at 9.5%. It has EPS annual growth over the past 5 fiscal years of 2.7% when sales grew 2.6. It reported -5.4% sales drop, and -11.3% EPS decline in the last quarter.
The stock is trading at $66.75, up 32.88% from 52-week low of $50.91. The stock trades down -10.92% from its peak of $76.91 and -0.09% below the consensus price target of $66.69. Its volume clocked up at 1.06 million shares which is lower than the average volume of 1.34 million shares. Its market capitalization currently stands at $10.35B.
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