Dover Corp DOV reported fourth-quarter fiscal 2023 revenue of $2.106 billion, a decline of 1.6% year-over-year, missing the consensus of $2.16 billion. Organic revenue fell 3%.
Adjusted EPS was $2.45, up by 13% Y/Y, beating the consensus of $2.42.
Gross profit increased 2.5% to $785.76 million with a profit margin of 37.3%, up 150 bps.
Operating income for the quarter climbed slightly by 0.50% to $354.47 million, and margin expanded by 35 bps to 16.8%.
Total adjusted segment EBITDA grew 3.34% to $500.54 million, and margin expanded by 113 bps to 23.8%.
Operating cash flow for the quarter totaled $516.35 million compared to $338.64 million. Free cash flow was $455.34 million.
The company ended the quarter with cash and cash equivalents of $398.56 million.
“We reduced production volumes in certain product lines in line with our mid-year forecasts in response to destocking trends that resulted from lead time normalization and higher inventory carrying costs driven by interest rate increases. We believe these proactive actions balanced channel inventories in the majority of our markets with forecasted demand for 2024,” commented Dover’s President and Chief Executive Officer, Richard J. Tobin.
“We expect demand conditions to progressively improve from the fourth quarter exit rate through the year on solid underlying end markets across most of the portfolio, supported by the recent positive year-over-year order momentum,” added Tobin.
2024 Outlook: Dover expects GAAP EPS of $7.90-$8.10 and adjusted EPS of $8.95-$9.15 versus consensus of $9.24.
Dover sees revenue growth of 2%-4% and 1%-3% on an organic basis.
Price Action: DOV shares are trading higher by 1.63% at $152.22 on the last check Thursday.
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