Dover Earnings: Softer Quarter, but Plenty of Signs of Long-Term Strength in Key Secular Trends

Narrow-moat-rated Dover had a bit of a rougher quarter, as all but one of its segments fell below our expectations from a top-line perspective. Nonetheless, we see no reason to alter our long-term thesis. Consequently, we maintain our $174 fair value estimate. Second-quarter sales of $2.1 billion were off about 6% from what we were hoping to see. Similarly, at the operating level, three of the five segments missed the mark from what we penciled in, though the discrepancy in operating income was even smaller.