Dover Q1 Earnings Beat On Strong Demand In Attractive Industrial Markets, Outlook Reaffirmed

Dover Corp DOV reported Q1 2023 revenue growth of 1% Y/Y to $2.08 billion and +3% Y/Y organic, exceeding the consensus of $2.07 billion.
Revenues grew across most of the portfolio in Q1, driven by the recovery in global supply chains and strong demand across several end markets.
At the end of the quarter, the company's order backlog was $2.97 billion versus $3.42 billion a year ago. Booking totaled $2.04 billion versus $2.25 billion in Q1 2022.
Adjusted EPS improved to $1.94 from $1.90 a year ago, beating the consensus of $1.92.
Gross margin contracted by 30 bps Y/Y to 35.9%. Total segment earnings margin expanded 30 bps Y/Y to 20.0%.
Adjusted segment EBITDA was $450.3 million (+3% Y/Y), and the margin expanded by 30 bps to 21.7%.
Dover generated cash from operating activities of $241.3 million, compared to $23.7 million a year ago. Free cash flow was $192.9 million.
2023 Guidance, reaffirmed: Dover expects adjusted EPS of $8.85 - $9.05 vs. consensus of $8.94; and revenue growth of 3% to 5%.
President and CEO, Richard J. Tobin said, "Overall demand conditions in our attractive industrial markets remain solid, and our bookings are healthy. Our elevated backlog levels, especially in some of our longer-cycle businesses, provide good visibility to our full year forecast. We are on track to deliver our full year cash flow target as we liquidate inventory in concert with a normalization of our backlog. We are mindful of the mixed macroeconomic backdrop and are diligently monitoring our customers' plans, with available cost control levers and operational flexibility positioning us to deliver results in various macroeconomic environments. We maintain our full year adjusted EPS guidance."
Price Action: DOV shares closed lower by 2.11% at $145.46 on Tuesday.

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