Dover Corp. (DOV) upped its quarterly dividend by 1.5 cents to 27.5 cents. This marks the fifty-fifth consecutive year of the company’s dividend hike and translates to a 6% increase from the prior dividend of 26 cents. The increased dividend will be paid on September 15, 2010, to stockholders of record as on August 31, 2010.
The company’s dividend hikes for fifty five years in a row is the fourth longest record of consecutive annual dividend increases amongst all listed companies. The last dividend hike of 4% to 26 cents was announced on August 6, 2009.
Dover continues to focus on strengthening its balance sheet and improving cash flow. The company’s debt-to-capital ratio was a manageable 31.5% as of June 30, 2010, compared with 32.9% as of March 31, 2009.
As of June 30, 2010, Dover had $738.8 million of cash and cash equivalents on its balance sheet compared with $690.3 million as of March 31, 2010. Cash from operating activities in second-quarter 2010 was $231.2 million, higher than $192.4 million in the prior-year quarter. In the first six months of 2010, Dover paid $97.3 million in dividends.
The company’s performance in the second quarter was impressive. Dover’s earnings per share were 91 cents, compared with 54 cents in the year-earlier period, outperforming the Zacks Consensus Estimate of 78 cents.
Dover recorded revenues of $1.8 billion in the quarter beating the Zacks Consensus Estimate of $1.7 billion. Revenues improved 29% year over year. Revenue increases across all segments led to the overall revenue climb with refrigeration equipment, electronic technologies, fluid management and product ID leading the charge.
Management expects revenues to grow in the range of 16%–18% for fiscal 2010, comprising organic revenue growth of 13%–15% and growth of 3% from acquisitions. Management’s projection is based on the solid first half of 2010 along with a strong book-to-bill. The Zacks Consensus Estimate for revenue currently stands at $6.8 billion, suggesting a growth rate of 18%, which is at the upper end of Dover’s guidance range.
Management also estimates earnings in the range of $3.05–$3.25 per share based on better revenue expectation, solid first half of 2010 and continued focus on margin improvement. The Zacks Consensus Estimate for Dover’s earnings is pegged at $3.23 per share, closer to the upper end of its guidance.
Solid performance and bookings across all segments along with the ability to generate strong cash flow, continued focus on margin improvement and shareholder value position Dover to post better results in the upcoming quarters. Moreover, the company continues to pursue strategic acquisitions to improve its product offering and complement its organic growth strategy. We maintain our Outperform rating and the Zacks #2 Rank (Buy) on Dover.
DOVER CORP (DOV): Free Stock Analysis Report
Zacks Investment Research
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Dover continues to focus on strengthening its balance sheet and improving cash flow. The company’s debt-to-capital ratio was a manageable 31.5% as of June 30, 2010, compared with 32.9% as of March 31, 2009.
As of June 30, 2010, Dover had $738.8 million of cash and cash equivalents on its balance sheet compared with $690.3 million as of March 31, 2010. Cash from operating activities in second-quarter 2010 was $231.2 million, higher than $192.4 million in the prior-year quarter. In the first six months of 2010, Dover paid $97.3 million in dividends.
The company’s performance in the second quarter was impressive. Dover’s earnings per share were 91 cents, compared with 54 cents in the year-earlier period, outperforming the Zacks Consensus Estimate of 78 cents.
Dover recorded revenues of $1.8 billion in the quarter beating the Zacks Consensus Estimate of $1.7 billion. Revenues improved 29% year over year. Revenue increases across all segments led to the overall revenue climb with refrigeration equipment, electronic technologies, fluid management and product ID leading the charge.
Management expects revenues to grow in the range of 16%–18% for fiscal 2010, comprising organic revenue growth of 13%–15% and growth of 3% from acquisitions. Management’s projection is based on the solid first half of 2010 along with a strong book-to-bill. The Zacks Consensus Estimate for revenue currently stands at $6.8 billion, suggesting a growth rate of 18%, which is at the upper end of Dover’s guidance range.
Management also estimates earnings in the range of $3.05–$3.25 per share based on better revenue expectation, solid first half of 2010 and continued focus on margin improvement. The Zacks Consensus Estimate for Dover’s earnings is pegged at $3.23 per share, closer to the upper end of its guidance.
Solid performance and bookings across all segments along with the ability to generate strong cash flow, continued focus on margin improvement and shareholder value position Dover to post better results in the upcoming quarters. Moreover, the company continues to pursue strategic acquisitions to improve its product offering and complement its organic growth strategy. We maintain our Outperform rating and the Zacks #2 Rank (Buy) on Dover.
DOVER CORP (DOV): Free Stock Analysis Report
Zacks Investment Research
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