NEW YORK (TheStreet) -- Shares of Dover Corp. (DOV) - Get Dover Corporation Report rose 2.08% to $71.21 in afternoon trading Monday ahead of the industrial products maker's fourth-quarter earnings report on Tuesday before the market open.
The consensus estimate calls for Caterpillar to post earnings of 94 cents a share on revenue of $2.04 billion. In the fourth quarter last year, the company reported EPS of $1.28, which matched the consensus estimate of $1.28, according to analysts polled by Thomson Reuters. Revenue totaled $2.209 billion, which surpassed analysts' expectations of $2.174 billion.
In the third quarter of 2014, Caterpillar reported EPS of $1.35, which beat the consensus estimate of $1.31. Revenue totaled $2.092 billion, which surpassed analysts' expectations of $2.044 billion.
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Separately, TheStreet Ratings team rates DOVER CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOVER CORP (DOV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DOV's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Machinery industry and the overall market, DOVER CORP's return on equity exceeds that of both the industry average and the S&P 500.
- 41.98% is the gross profit margin for DOVER CORP which we consider to be strong. Regardless of DOV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DOV's net profit margin of 11.07% compares favorably to the industry average.
- You can view the full analysis from the report here: DOV Ratings Report