Earnings Outlook For Dover

Dover DOV releases its next round of earnings this Tuesday, July 20. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Dover reporting earnings of $1.83 per share on sales of $1.89 billion. In the same quarter last year, Dover reported earnings per share of $1.13 on revenue of $1.50 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be up 61.95%. Sales would be up 26.08% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Dover were trading at $154.95 as of July 16. Over the last 52-week period, shares are up 46.93%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Dover is scheduled to hold the call at 10:00:00 ET and can be accessed here.