Dover Q3 Profit Rises; Narrows 2013 EPS View - Quick Facts

(RTTNews) - Dover Corp. (DOV) reported that net earnings for the third quarter of 2013 rose to $269.1 million or $1.56 per share, from $241.0 million, or $1.31 per share in the same quarter last year.

Earnings from continuing operations were $263.7 million, or $1.53 per share compared to $233.3 million, or $1.27 per share, in the prior year period. Earnings per share from continuing operations included Knowles spin-off costs of $0.06 earnings per share, discrete tax benefits of $0.03 earnings per share, and other one-time gains of $0.02 recognized in the latest-quarter.

Excluding these items, adjusted earnings per share from continuing operations for the third quarter of 2013 was $1.54, reflecting an increase of 23% over an adjusted earnings per share of $1.25 in the prior year period. Analysts polled by Thomson Reuters expected the company to report earnings of $1.50 per share for the quarter. Analysts' estimates typically exclude special items. Revenues for the quarter grew to $2.25 billion from $2.10 billion in the prior year quarter. Sixteen analysts had consensus revenue estimate of $2.31 billion for the quarter. The revenue increase was driven by organic growth of 3% and an increase of 4% from acquisitions.

Dover's President and Chief Executive Officer, Robert Livingston, said, "I am pleased with our strong third quarter results, which were driven by broad-based organic growth across all segments. These results reflect the impact of our global growth initiatives and our recent acquisitions. Particularly strong were our drilling and downstream markets within Energy, our refrigeration & food equipment markets, and Printing & Identification."

While its overall third quarter performance was strong, the company said market conditions proved to be softer than anticipated. As a result, it revised its organic growth expectations to the low-end of our prior range, and now expect full year growth of about 3%. The company said its acquisition growth remains unchanged at 4%, resulting in total full-year revenue growth of approximately 7%.

Earlier, the firm expected full-year organic revenue growth of 3% to 5%, complemented by acquisition growth of 4%, resulting in total revenue growth of 7% to 9%.

The company said it narrowed its 2013 earnings per share guidance to the range of $5.57 to $5.64, compared to prior estimate of $5.56 - $5.71 per share. The revised earnings per share guidance includes incurred spin-off costs, discrete tax benefits, and one-time gains. It does not include any prospective Knowles spin off costs in the fourth quarter.

Analysts expect the company to report earnings of $5.30 per share and revenues of $8.75 billion for fiscal 2013.