Yahoo Finance Dover Corporation (NYSE:DOV) Q1 2024 Earnings Call Transcript
Dover Corporation (NYSE:DOV) Q1 2024 Earnings Call Transcript April 25, 2024
Dover Corporation beats earnings expectations. Reported EPS is $1.95, expectations were $1.88. Dover Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning, and welcome to Dover's First Quarter 2024 Earnings Conference Call. Speaking today are Richard J. Tobin, President and Chief Executive Officer; Brad Cerepak, Senior Vice President and Chief Financial Officer; and Jack Dickens, Senior Director, Investor Relations. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions] As a reminder, ladies and gentlemen, this conference call is being recorded and your participation implies consent to our recording of this call. If you do not agree with these terms, please disconnect at this time. Thank you. I would now like to turn the call over to Mr. Jack Dickens. Please go ahead, sir.
Jack Dickens: Thank you, Natalie. Good morning, everyone and thank you for joining our call. An audio version of this call will be available on our website through May 16, and a replay link of the webcast will be archived for 90 days. Our comments today will include forward-looking statements based on current expectations. Actual results and events could differ from those statements due to a number of risks and uncertainties, which are discussed in our SEC filings. We assume no obligation to update our forward-looking statements. With that, I will turn this call over to Rich.
Richard Tobin: Thanks, Jack. Let's go to Slide 3. First quarter results were in line with our expectations, strong performance across several of our end markets together with improving order and shipment trends in biopharma components and growth platforms, we're able to offset the counter cyclicality in some of our long cycle portfolio in what was expected to be our toughest comparable quarter this year. It is clear that our operating posture that we took in the second half of 2023 to proactively curtail production has had its intended effect. Customer and channel inventories are now largely in balance with prevailing demand conditions and level set to normalize lead times. As a result, order momentum in the quarter was strong and broad based particularly in our shorter cycle end markets building off an exit rate from last and bolstering our confidence in our full year outlook.
We remain active on capital deployment. During the quarter, we closed two synergistic bolt-on acquisitions that add attractive digital and reoccurring revenue streams to our retail fueling and car wash platforms. The De-Sta-Co divestiture closed at the end of March as part of our ongoing portfolio evolution. We also launched a $500 million accelerated share repurchase program at the end of February to return excess capital to our shareholders. Our strong cash flow generation along with the proceeds from the De-Sta-Co sale provide ample capacity for further capital deployment in 2024. We're off to a solid start to the year and the setup for the end of the year is encouraging. Our order rate momentum and healthy underlying demand conditions support the outlook for volume and margin improvement as we progress through the year.
We are narrowing our full year adjusted EPS guidance towards the higher end of the range and we'll continue to evaluate our full year targets as the year progresses, especially if demand trends continue. Let's go to Slide 4. Quarterly revenue was up 1% in the quarter, booking were up 3% organically year-over-year and up 12% sequentially in the quarter reflecting growing order rate moment across much of the portfolio. Of note, after seven quarters of bookings decline, as a result of the post-COVID backlogs, we have now seen positive bookings growth in two straight quarters and expect this positive trend to continue for the rest of the year. Segment margins were 19.7% down 30 basis points. We expect to return to positive year-over-year accretion from here on mix and volume leverage.
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