The manufacturer of industrial products, Dover Corporation DOV trimmed its 2015 earnings per share guidance to approximately $3.62 from the previously provided range of $3.73 to $3.80 due to weaker market conditions. The negative impact of completed acquisitions and incremental restructuring charges also led to the slash.
The revised forecast includes an expected impact of 3 cents per share from recently completed acquisitions, including purchase accounting and deal-related costs, as well as an estimated 4 cents per share impact from incremental restructuring.
The company has also initiated its 2016 earnings per share guidance in the range of $3.85 to $4.05. The guidance is based on expectation of full-year revenue growth in the range of 2% to 5%, which comprises organic revenue decline of 3% to 0%, acquisition growth of 7% and a 2% impact from currency.
Dover expects to benefit from restructuring activities in 2016. Further, recent acquisitions and benefits from share repurchase will also be significant growth drivers in 2016. However, difficult market conditions, especially in oil & gas and markets as well as a challenging fourth quarter will remain headwinds for the company in the near term.
Meanwhile, Dover intends to remain focused on expanding its business in the key markets that offer significant growth potential and will lead to organic and inorganic growth at all segments. Moreover, the company strives to innovate its products as per customer needs in order to gain market share. However, unstable oil prices and foreign exchange volatility remain matters of concern for Dover.
Illinois-based Dover is an industrial conglomerate producing wide range of specialized industrial products and manufacturing equipment. It operates through four major operating segments: Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment.
Dover currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Albany International Corp. AIN, Brady Corp. BRC and Codexis, Inc. CDXS. All these stocks carry a Zacks Rank #1 (Strong Buy).
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