- Dover Corp (NYSE:DOV) reported first-quarter FY22 revenue growth of 9.9% year-over-year to $2.05 billion and +9% organic, beating the consensus of $2.03 billion.
- Adjusted EPS improved to $1.90 from $1.81 in 1Q21, beating the consensus of $1.83.
- Gross margin contracted by 240 bps to 36.2%. Total segment margin declined to 16.5% from 19% in 1Q21.
- Operating income declined by 4.2% Y/Y to $299.35 million, and the margin contracted by 210 bps to 14.6%.
- SG&A expenses increased by 8.5% Y/Y to $443.84 million, and as a percentage of revenue, it was 21.6% versus 21.9% last year.
- Total segment adjusted EBITDA was $426.08 million (+0.4% Y/Y), and the margin contracted by 190 bps to 20.8%.
- Dover generated cash from operating activities for Q1 of $23.68 million, compared to $177.18 million a year ago. Free cash outflow was $26.69 million.
- At the end of the quarter, the company's backlog was $3.42 billion, up 54.4% Y/Y. Booking totaled $2.25 billion (-3.5% Y/Y).
- FY22 Guidance, reaffirmed: Dover expects adjusted EPS of $8.45 - $8.65 vs. consensus of $8.57; and revenue growth of 8% - 10% and 7% - 9% on an organic basis.
- Price Action: DOV shares are trading lower by 7.79% at $143.41 on the last check Thursday.
