(Reuters) – Dover Corp on Tuesday forecast annual profit largely below Wall Street expectations and missed second-quarter estimates, as manufacturing and shipment disruptions due to a system upgrade hit the company’s vehicle services business.
Shares of the company were down 3.6% at $146.50 in premarket trading.
The industrial equipment manufacturer expects its full-year adjusted profit per share to range between $8.85 and $9.00, where the mid-point of $8.92 fell short of analysts’ estimates of $8.98 per share, according to Refinitiv IBES data.
The company, however, expects demand seasonality and backlog shipment timing to drive sequential and comparable operating margin improvement in the second half.
Excluding one-off items, it posted a smaller-than-expected profit of $2.05 per share for the second quarter, compared with analysts’ average estimate of $2.2 per share.
Its revenue fell 3% to $2.10 billion from a year earlier, missing analysts’ estimates of $2.20 billion.
Dover, which operates brands such as TWG and Vehicle Service Group (VSG), manufactures consumable supplies, aftermarket parts, software and digital solutions.
(Reporting by Priyamvada C in Bengaluru; Editing by Shweta Agarwal)