Really pleased with the margin performance of the quarter, says Dover Corp. CEO Richard Tobin
Really pleased with the margin performance of the quarter, says Dover Corp. CEO Richard Tobin
Dover Corp. President, Chairman, and CEO Richard Tobin joins 'Mad Money' host Jim Cramer to talk quarterly results, its full-year outlook, and more.
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a day ago
- Yahoo
The Top 5 Analyst Questions From Dover's Q1 Earnings Call
Dover's first quarter results drew a positive market response, despite flat revenue performance and a slight miss on Wall Street's top-line expectations. Management pointed to significant operating margin expansion, driven by a favorable product mix, cost discipline, and productivity initiatives. CEO Richard Tobin highlighted 'excellent incremental margin conversion,' with improved profitability across most segments. The company benefited from strong demand in areas like biopharma components and data center cooling solutions, while some end markets—particularly vehicle services and aerospace—faced volume declines due to program timing and external pressures such as tariffs on Chinese imports. Is now the time to buy DOV? Find out in our full research report (it's free). Revenue: $1.87 billion vs analyst estimates of $1.88 billion (flat year on year, 0.7% miss) Adjusted EPS: $2.05 vs analyst estimates of $1.98 (3.4% beat) Adjusted EBITDA: $396.2 million vs analyst estimates of $398.8 million (21.2% margin, 0.7% miss) Management lowered its full-year Adjusted EPS guidance to $9.30 at the midpoint, a 1.1% decrease Operating Margin: 15.9%, up from 13.5% in the same quarter last year Organic Revenue was flat year on year (-3.4% in the same quarter last year) Market Capitalization: $24.09 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeff Sprague (Vertical Research): Asked how new cost actions and pricing are being used to offset tariffs. CEO Richard Tobin explained most tariff costs are being mitigated by price, especially for Chinese imports, but acknowledged some near-term volume risk. Andrew Obin (Bank of America): Inquired about the sustainability of positive bookings trends and the margin impact of volume declines. Tobin said bookings should remain stable, with margin decrementals largely a mechanical effect of lower volume at high incremental margins. Scott Davis (Melius Research): Asked if M&A valuations might decline due to macro uncertainty. Tobin responded that while some deals have been pulled, there is not yet broad evidence of lower valuations, but Dover is actively pursuing proprietary opportunities. Nigel Coe (Wolfe Research): Sought clarity on the volume versus price mix in guidance cuts. Tobin stated the adjustment was a mechanical 1% top-line reduction, with actual mix between price and volume still uncertain due to market dynamics. Joe O'Dea (Wells Fargo): Questioned where Dover's proximity manufacturing provides the most competitive advantage. Tobin noted that businesses manufacturing in the U.S. with less reliance on imported components are best positioned to defend or grow share in a tariff environment. In upcoming quarters, the StockStory team will monitor (1) the effectiveness of Dover's pricing strategies in offsetting tariff-related volume risks, (2) whether growth in biopharma, data center cooling, and clean energy components continues to drive segment mix and profitability, and (3) the pace of structural cost reduction projects like rooftop consolidations. Execution on portfolio realignment and demand trends in capital-exposed end markets will also be important indicators. Dover currently trades at $174.90, up from $166.34 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
CNBC
a day ago
- CNBC
Home Depot eyes a deal — plus, casual dining shines and TikTok ban is delayed once more
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 was modestly lower Friday as investors mull over the latest news from the Israel-Iran conflict and consider the Federal Reserve's next monetary policy move. Fed Governor Christopher Waller said that policymakers could lower interest rates as early as July. "That would be my view, whether the committee would go along with it or not," Waller told CNBC Friday morning. Meanwhile, shares of chip stocks — including Club holdings Broadcom and Nvidia — were under pressure after a Wall Street Journal report indicated that the U.S. may revoke waivers that major semiconductor manufacturers rely on to use American technology in China. Elsewhere on the geopolitical front, top European diplomats were set to hold talks with Iranian officials in Geneva on Friday. It comes after the White House said that President Donald Trump will decide within the next two weeks whether the U.S. will directly join Israel's attacks on Iran's nuclear sites. Home Deal-po?: QXO is not budging on its unsolicited $5 billion cash proposal to acquire GMS Inc. following Club name Home Depot's own bid for the building products distributor, Bloomberg News reported Friday afternoon . A QXO spokesperson told Bloomberg that $5 billion is the company's full offer. On Thursday, The Wall Street Journal reported that Home Depot made a submission for GMS — raising the specter of a bidding war with QXO, the latest venture of billionaire businessman Brad Jacobs, a frequent guest on "Mad Money" over the years. Home Depot and QXO are competing for a bigger share of the construction supply market targeting professional contractors. Home Depot made a massive move in that area last year with its $18 billion acquisition of SRS Distribution. RBC analysts said Home Depot's bid for GMS might be perceived "slightly negatively," arguing it could further gross-margin dilution and delay share repurchases because the company's debt load remains above its targeted levels in the wake of the SRS deal. Casual shining: Darden Restaurants' fourth-quarter earnings report Friday showed that consumers are still opening their wallets for casual dining despite high levels of economic uncertainty — an encouraging sign for portfolio name Texas Roadhouse . Darden's leading chains — Olive Garden and LongHorn Steakhouse — saw same-store sales rise 6.9% and 6.7% for the quarter, respectively. LongHorn Steakhouse, a direct competitor to the Texas Roadhouse chain, reported a 9.3% increase in total sales, which includes the performance of 16 new locations. "Consumers are figuring out that casual dining is a great value. And so, they're coming to casual dining more," said Darden CEO Rick Cardenas "We're seeing that across our brands and some of the industry. And so, without commenting on what's happened in other places, we think that's a big part of it. Consumers want to go out and spend their hard-earned money. And we think we're taking some wallet share from fast food and fast casual." Added Darden CFO Raj Vennam: "Pretty much every household income is growing in casual dining except for the ones below $50,000." For its full-year fiscal 2026, Darden expects total inflation in the range of 2.5% to 3% — including both labor and commodities like food — and same-store sales between 2% and 3.5%. Executives also doubled down on their commitment to affordability, saying they expect menu price hikes this fiscal year will "still likely be below total inflation." In general, what we heard from Darden, particularly on the overall consumer interest in casual dining, bodes well for Texas Roadhouse. It comes after analysts at UBS were upbeat on the Club name in a note earlier this month . We took some profits on Texas Roadhouse in May to lock in some big gains on our purchases in April during the tariff-driven market turmoil. While the stock is up less than 2% since that trim, it is our best-performing name this week, gaining around 6%. Clock keeps ticking: Trump signed an executive order Thursday granting another 90-day extension to the deadline for ByteDance, the Chinese parent company of TikTok, to divest the social media app's U.S. operations to an American entity. This is the third time Trump has extended the divestiture timeline for the short-form video platform, which is the chief competitor for Club name Meta . The deadline for ByteDance to complete the sale or face a ban in the U.S. is now set for Sept. 17. From an investment perspective, it would be a clear-cut positive for Meta's stock if its main rival in the U.S. went dark — forcing its users and advertisers to redirect their attention and dollars elsewhere. But, at this point, we're not holding our breath for it to happen, given Trump's stated desire to "save it." Meta's actions suggest that CEO Mark Zuckerberg isn't betting on that happening, either. Instead, the Facebook and Instagram parent is putting its full financial force behind its AI investments to keep attracting and retaining users, and to further improve revenue and profits in its core advertising business. As we recently wrote , the AI-first tech giant keeps improving its AI tools for advertisers to create personalized ads with diverse text, backgrounds and images at a low cost. To stay ahead, Zuckerberg is on the hunt for top AI talent. CNBC reported Thursday that Meta is planning to hire AI investors Daniel Gross and Nat Friedman and partially buy out their venture capital fund, NFDG, which has invested in AI startups like Perplexity. Thursday's news comes after Meta recently invested $14.8 billion for a 49% stake in data-labeling company Scale AI. And, according to a Bloomberg News report Friday , Meta held discussions with Perplexity about a potential takeover before making its Scale AI offer. Ultimately, Meta's AI advancements and top experts in the field will allow it to better compete should TikTok remain as a competitor in the U.S. Meta stock is down about 1.6% Friday, to roughly $684 per share. It's up around 17% year to date. Up next: Starting after the close Friday and continuing into next week, Club name Eli Lilly will be presenting a slew of trial data at the American Diabetes Association's annual conference. Meanwhile, there are no Club holdings reporting earnings next week, though we'll be keeping an eye on results from the likes of FedEx and Micron . KB Home also has earnings in what will be a busy week of housing news, most notably the National Association of Realtors' existing home sales report on Monday morning. The biggest economic event of the week is the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) index, which is due out Friday morning. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CNBC
2 days ago
- CNBC
Here's our guide on how to research stocks — and keep track of the ones you own
Here's our Club Mailbag email investingclubmailbag@ — so you send your questions directly to Jim Cramer and his team of analysts. We can't offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. When Jim Cramer says that investors need to do the homework, what is the homework and where do you find it? -Maxine G. This is a crucial question for all investors to ask. You are correct that we preach "buy and homework," as opposed to the "buy and hold" mantra that many long-term investors tout. In this piece, we'll provide some tips to get you started with the homework, but it's important to remember that the homework never ends. Think of it like investigative journalism. You know there is a story there — in this case, a potential investment opportunity — but the magnitude of the story (or opportunity) isn't going to reveal itself until you've turned over as many stones as possible, and then a few more. Put another way, the homework is not a task that needs to be accomplished, but rather an ongoing journey that requires you to stay on your toes and constantly reconsider your investment thesis as new information is revealed. So, where do you find the homework? In an education article a few years ago , we discussed in great detail five types of information that investors can use to conduct the homework: 1) company filings 2) earnings calls 3) earnings estimates 4) geopolitical and macroeconomic news 5) industry-specific news. The information covered in that article is as relevant today as it was back in 2022, so we'd strongly encourage members to click the above link and go read it — whether it's a refresher for longtime members, or for the first time for those who have joined the Club more recently. Rather than rehash everything we covered in that piece, we wanted to use this space to highlight a few additional tools for members to consider because even our own homework process has evolved since we wrote it. One we've recently become fans of is the smartphone app called Quartr , which provides a convenient location to listen to earnings calls and Wall Street conferences, as well as the ability to read transcripts in real-time. It also provides analyst estimates across a few different metrics, which, as mentioned above, is an important part of the homework process. On the app, you're able to "follow" the companies in your portfolio and their close competitors, so all their activities are in one place. We also think it's important to consider podcasts as a source of investment information. While we won't highlight any one specific podcast — there are so many, and arguably more important than the podcast host itself is the guest — we view them as great sources of information because the interviews tend to be in a long, free-flowing format compared with what you might get elsewhere. This gives industry experts and/or executives the opportunity to delve deeper than they may be able to in other settings, which gives us a deeper understanding of the topic or company in question. A recent example where this helped us was when Club holding Meta Platforms announced a collaboration with the defense startup Anduril to develop headsets for the U.S. Army. The day of that announcement, we saw that Anduril founder and CEO Palmer Luckey appeared on a podcast where he talked extensively about its work with Meta, providing background on their relationship and their ambitions. It helped shape our understanding, and we even quoted what Luckey said in our analysis article the next day . When evaluating an investment opportunity or keeping tabs on the stock once it's in your portfolio, you'll want to do more than read the news and analyze the qualitative aspects of the investment. It is also important to crunch some numbers to determine the company's financial health and valuation. We previously put together a five-part series on how to analyze an earnings report . In a separate story, we provided three ways to evaluate a company's debt level to judge the riskiness of buying its stock. We've done a few explainers on valuation in the past, too. For example, we have discussed the two primary ways that investors value stocks and the role that interest rates play in both. We have also explained how to calculate your own price-to-earnings (PE) and price-to-earnings-growth (PEG) ratios . And relatedly, we more recently did a deeper dive into the importance of a PEG ratio . For many investors, layering in some technical analysis is also part of their investment process — though, as we've noted in the past, our primary focus is on the business fundamentals. While we may take a position when the fundamentals are strong and the technicals are weak, we would never look to invest in a company in which the fundamentals are lacking, no matter the technical setup. In our view, technical analysis works until it doesn't, whereas fundamental analysis works until the fundamentals change — and if you're doing the homework, you'll know when that happens. We've provided some technical analysis in the past . If you go back and revisit that article, keep in mind that the technical setup is always changing. So, at this point, think more about the lessons and the tools used in that piece, rather than keying into any level that may have come up on those charts, which represent only a snapshot in time. Finally, if you're considering an investment because of its dividend yield, you'll want to be sure that the payout is actually sustainable. We explained how to do that in a previous story. In the end, the homework is a continuous process; Jim's recommendation is one hour of homework per week for each stock you own. While we've provided a number of useful tools and considerations here — and in the articles linked throughout this commentary — investors can also be rewarded for constantly thinking outside the box and looking for information in every possible place it may be available. This includes simply walking into a location of the company you're interested in and asking some questions, which has become known as the " scuttlebutt " method. The concept was popularized by Philip Fisher's book "Common Stocks and Uncommon Profits," and it's all about seeing the operations in real life, speaking with store employees, managers, customers, suppliers, competitors, and so on. (Jim Cramer's Charitable Trust is long META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
