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Dover expands with European cryogenic component deal

EditorNatashya Angelica
Published 07/18/2024, 04:45 PM
DOV
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DOWNERS GROVE, Ill. - Dover (NYSE:DOV), a diversified global manufacturer, announced today the acquisition of Demaco Holland B.V., a provider of cryogenic flow control components. Demaco will integrate into the OPW Clean Energy Solutions (CES) business within Dover's Clean Energy & Fueling segment.

Demaco, recognized for its engineered products such as vacuum jacketed piping and valves, serves various industries including clean energy, scientific research, and diversified industrial applications. The acquisition is set to enhance OPW CES's product offerings and strengthen its position in the cryogenic gas flow control market, particularly in Europe and Asia.

Kevin Long, President of OPW, highlighted the significance of the acquisition, stating, "This acquisition marks a significant milestone in the OPW CES business unit's expansion strategy, enhancing our capabilities and broadening our product offerings to meet the growing demands of our industrial gas and clean energy customers worldwide."

Dover, which operates in various sectors including Engineered Products, Clean Energy & Fueling, and Climate & Sustainability Technologies, reported an annual revenue of over $8 billion. With approximately 25,000 employees, the company emphasizes its entrepreneurial culture and collaborative customer relations.

The press release included forward-looking statements regarding the anticipated effects of the transaction. However, it also acknowledged risks and uncertainties that could affect future results, referring to filings with the Securities and Exchange Commission for more detailed risk factors.

The acquisition is part of Dover's strategy to lead in its markets by expanding its global scale and operational agility. The addition of Demaco is expected to solidify Dover's offerings in the clean energy sector, providing a wider range of technological solutions to its global customer base.

The information in this article is based on a press release statement from Dover Corporation (NYSE:DOV).

In other recent news, Dover Corp ., a diversified global manufacturer, has seen its shares target revised upwards by Mizuho Securities, with the firm raising its price target to $185 from the previous $185.

This comes on the back of a strong start to the year for Dover, with positive orders and increased momentum. Mizuho has also revised its earnings per share (EPS) estimates for Dover for the years 2024 and 2025, raising them by 5 cents to $9.10 and $9.75, respectively, from the previous $9.05 and $9.70.

Dover recently reported first-quarter earnings that surpassed analyst estimates, with an adjusted EPS at $1.95, which is $0.08 higher than expected. The company's revenue for the quarter also exceeded expectations, coming in at $2.09 billion against the consensus estimate of $2.04 billion.

In light of these recent developments, Dover has narrowed its full-year adjusted EPS guidance to the higher end of the range, forecasting GAAP EPS between $10.78 and $10.93 and adjusted EPS between $9.00 and $9.15.

This guidance is based on anticipated full-year revenue growth of 2% to 4%, with organic growth contributing 1% to 3%. The midpoint of the adjusted EPS guidance range is $9.075, which is slightly below the current analyst consensus of $9.15. However, Dover's management remains confident in the company's full-year outlook.

InvestingPro Insights

Dover Corporation's (NYSE:DOV) recent acquisition of Demaco Holland B.V. aligns with its robust financial performance and strategic growth initiatives. An InvestingPro Tip highlights Dover's impressive track record of raising its dividend for 54 consecutive years, showcasing the company's commitment to delivering shareholder value through consistent financial returns. Moreover, Dover's stock is noted for trading at a low P/E ratio relative to near-term earnings growth, suggesting that the company may be undervalued given its growth prospects.

InvestingPro Data further supports Dover's financial stability, with a solid market capitalization of 25.66 billion USD and a P/E ratio of 17.91. The company's Price / Book ratio stands at 4.97, reflecting the market's valuation of Dover's assets relative to its share price. With a Gross Profit Margin of 36.97% over the last twelve months as of Q1 2024, Dover demonstrates its ability to maintain profitability and operational efficiency.

For those interested in a deeper dive into Dover's financial health and market potential, InvestingPro provides additional analysis and metrics. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to an array of InvestingPro Tips. With 9 additional tips listed on InvestingPro for Dover, investors can make more informed decisions by considering various aspects of the company's performance and market positioning.

The strategic acquisition of Demaco is likely to contribute positively to Dover's already robust revenue streams and reinforce its presence in the clean energy and fueling sectors. As the company continues to execute its growth strategy, investors and stakeholders can look to Dover's strong financial indicators and market performance as a sign of its potential for sustained success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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