Dover Q3 Profit Up, Revises Full-year View - Update

(RTTNews) - Dover Corp. (DOV), a diversified manufacturer of specialized products and components, Thursday reported a higher third quarter profit, as revenues grew 7 percent, with organic growth across all segments.

The company raised the lower end of its full-year earnings outlook, while lowered the upper end, and revised revenue growth expectations to the low-end of its prior range.

In the third quarter, the company's net earnings rose to $269.11 million or $1.56 per share from $241.05 million or $1.31 per share in the previous year.

Earnings from continuing operations were $1.53 per share, compared to $1.27 per share in the prior-year period.

Earnings per share from continuing operations included Knowles spin-off costs of $0.06 earnings per share, discrete tax benefits of $0.03 earnings per share, and other one-time gains of $0.02 recognized in the latest-quarter.

Excluding these items, adjusted earnings per share from continuing operations for the third quarter of 2013 was $1.54, while the company posted $1.25 per share a year earlier.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.50 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 7 percent to $2.25 billion from $2.10 billion in the prior year. Sixteen analysts were looking for revenue of $2.31 billion for the quarter. The revenue was driven by organic growth of 3 percent and an increase of 4 percent from acquisitions.

For full-year 2013, the firm now expects earnings per share to the range of $5.57 to $5.64, compared to prior estimate of $5.56 to $5.71 per share.

The revised earnings per share guidance includes incurred spin-off costs, discrete tax benefits, and one-time gains. It does not include any prospective Knowles spin off costs in the fourth quarter, the company said.

The company also revised its organic growth expectations to the low-end of its prior range, and now expect full year growth of about 3 percent. Dover said its acquisition growth remains unchanged at 4 percent, resulting in total full-year revenue growth of about 7 percent.

Earlier, the firm expected full-year organic revenue growth of 3 to 5 percent, complemented by acquisition growth of 4 percent, resulting in total revenue growth of 7 to 9 percent.

Analysts expect the company to report earnings of $5.30 per share, on revenues of $8.75 billion for 2013. DOV is currently trading at $86.06, down 2.56 percent.