Dover Q3, FY 2016 Outlook Comes In Below The Street

Dover Corporation DOV provided EPS outlook for the third quarter that came in below the estimates. Similarly, the company slashed its full year EPS forecast that came lower than the Street analysts' expectations.

The company expects EPS to be $0.81-$0.83 for the third quarter, which is significantly below the Street estimates of $1.02 a share.

For the full year, Dover reduced its EPS guidance from $3.35-$3.45 to $3.00-$3.05 on revenue drop of 4–5 percent, which included estimate organic revenue fall of 7–8 percent. Previously, the company estimated revenue to fall 3–5 percent including organic revenue drop of 6–8 percent.

The company indicated that its revised down guidance reflected its weak performance apart from other costs of $0.06 a share. A similar charge of $0.06 a share is also expected to be recorded in the fourth quarter.

Dover president and CEO, Robert Livingston, commented, "We also expect the macro global economy to remain soft, later cycle oil & gas exposed businesses to remain weak, and continued margin pressures in Refrigeration & Food Equipment through the end of the year, as we work to streamline and improve our production systems."

On the closure of Wayne Fueling Systems acquisition, the company expects closure in the first quarter of 2017 citing regulatory review in the Great Britain.

The stock traded down by $1.18, or 1.63 percent, to $71.06 in the pre-market trading on Monday.