Does a Halfway Breakup Go Far Enough?
A spinoff of Dover’s energy unit won't end fluctuations in earnings.
Photographer: SUSANA GONZÁLEZ/Bloomberg
Dover Corp. is slimming down, but it's still a conglomerate.
The industrial company on Friday for the first time gave 2018 guidance excluding the Apergy energy business it plans to spin off next month. Dover expects adjusted earnings per share of $4.70 to $4.85 this year, with the midpoint of that range in line with Robert W. Baird & Co. analyst Mircea Dobre's back-of-the-envelope estimate. Dover increased its organic revenue outlook for its fluids unit, which sells gas-station fuel pumps and systems that make pellets for the pharmaceutical industry. But the company said sales for its refrigeration and food-equipment segment may end up flat relative to last year, excluding the impact of currency swings and M&A, compared with a previous call for growth of as much as 4 percent.