Dover Shares Dip Premarket After Mixed Q1: Lowers 2025 EPS Guidance

Dover Corporation DOV shares are trading lower by over 4.8% premarket after the company reported first-quarter results on Thursday.

According to the company’s earnings release:

• Revenue was $1.87 billion, down 1% year over year (Y/Y) and slightly below the consensus of $1.88 billion. 
• Segment earnings margin expanded 230 bps Y/Y to 22.0%. Total adjusted segment EBITDA margin expanded to 24.0% from 21.6% a year ago.
• Margin improved aided by the favorable mix of high margin, high growth platforms and strict cost containment and productivity actions.
• Booking fell 1% Y/Y to $1.99 billion in the quarter. Adjusted EPS was $2.05, up 19% Y/Y, beating the consensus of $1.98.
• Operating cash flow for the quarter totaled $157.5 million, and free cash flow was $109.3 million.

2025 Outlook: Dover lowered the adjusted EPS outlook to $9.20-$9.40 (from $9.30–$9.50) vs. consensus of $9.25.

Meanwhile, the company reiterated total revenue growth guidance at 2%-4%, which translates to a range of $7.90 billion-$8.06 billion (vs consensus of $8.01 billion).

Dover CEO Richard J. Tobin noted the company’s “particular strength” in secular-growth-exposed markets in single-use biopharma components, thermal connectors, and CO2 systems.’

”We tend to manufacture in the same regions in which we sell, with our cost and revenue bases largely aligned. And we currently have an advantaged capital position that serves as a healthy insurance policy while allowing us to opportunistically play offense in capital deployment decisions,” he added.

Investors can gain exposure to the stock via ProShares S&P Kensho Smart Factories ETF MAKX and First Trust Capital Strength ETF FTCS.

Price Action: Dover shares are down 3.46 at $160.60 premarket at the last check Thursday.

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