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Highlights
- Dover Corporation (NYSE:DOV) reported revenue of US$2.0 billion, 15% higher YoY.
- Halliburton Company (NYSE:HAL) revenue increased 30% YoY to US$3.86 billion.
- Dover has raised the full-year 2021 guidance; It posted US$2.63 billion in cash and cash equivalents after retiring US$500 million senior notes.
Dover Corporation (NYSE:DOV) and Halliburton Company (NYSE:HAL) reported solid third-quarter revenue growth on Tuesday, driven by robust demand for products and services.
The DOV stock was up 1.80% at US$169.785, while the HAL stock was traded at US$25.595, down 1.60%, at 10:03 am ET from their previous closing prices.
Dover Corporation
Dover’s revenue jumped 15% to US$2.0 billion in Q3 2021 from US$1.75 billion in the comparable period of the previous year.
Its net earnings rose to US$264 million, a 32% growth YoY, and GAAP earnings per share diluted was up 31% to US$1.81 against US$1.38 per share diluted in the September quarter of 2020.
Segment-wise:
Engineered Products generated US$448 million, Fueling Solutions US$410 million, Imaging & Identification US$293 million, Pumps & Process Solutions US$438 million, and Refrigeration & Food Equipment contributed US$429 million, taking the total revenue to US$2.0 billion.
Its Non-GAAP free cash flow was US$303 million, accounting for 15% of revenue and 115% of the net earnings in the third quarter of 2021.
DOV’s consolidated bookings for the September quarter of 2021 were worth US$2.29 billion compared to US$1.8 billion in the same quarter in 2020.
President and CEO Richard J. Tobin credited the solid results to the teams’ efforts and continued demand despite ongoing supply and labor issues in the market.
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Dover has revised the full-year 2021 revenue guidance. It now expects the EPS raised to be in the range of US$6.64 to US$6.69 (US$7.45 - US$7.50 on an adjusted basis) for full-year 2021.
Dover is a diversified industrial manufacturer and solution provider. Its products include loaders for waste collection, pumps for fluid transportation, commercial refrigerators for groceries, and services include digital printing, marking, and coding for fast-moving consumer goods etc.
The Illinois-based company has a market capitalization of US$24.78 billion and a P/E ratio of 28.4. DOV has paid an annualized dividend of US$2.0, and its dividend yield is US$1.21%.
Its stock closed at US$166.79 on Oct 18, 2021, with a share volume of 1,031,605.
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Source - pixabay
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Halliburton Company
It reported total revenue of US$3.86 billion compared to US$2.98 in Q3 of 2020. The operating income increased to US$446 million from US$142 million for the same period a year ago.
Its net income was US$236 million for the third quarter of 2021, compared to a net loss of US$17 million for the corresponding quarter of 2020. The earnings per share diluted was US$0.26 against a loss per share diluted of US$0.02 for the September quarter of 2020.
Segment-wise:
The Completion and Production segment generated revenue of US$2.1 billion, a 4% increase YoY, and Drilling and Evaluation made US$1.7 billion, a 4% growth from the previous year.
North America contributed US$1.6 billion, and its international revenue was US$2.2 billion.
Its current cash and cash equivalent were US$2.63 billion as of September 30, 2021.
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For Q3, 2021, the free cash flow was US$469 million, and cash flow from operating activities was US$617 million. In addition, the company retired 2021 senior notes worth US$500 million in Q3.
Halliburton was founded in 1919 in Houston, Texas and currently has around 40,000 employees in over 70 countries. The oil-field services provider helps its customers throughout the lifecycle of the oil reservoir, starting from locating and managing geological data to production.
Its market capitalization is US$22.65 billion, and the P/E ratio is 159. The dividend yield is 0.69%, with an annualized dividend yield of US$0.18.
The stock closed at US$26.01 with a share volume of 15,290,320 on Oct 18, 2021.
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Bottomline
These two industrial-sector companies saw considerable growth in Q3, driven by robust demand. While Dover has raised the guidance, Halliburton reduced its debt. The industrial sector is expected to improve by leaps and bounds as the economy improves further. However, investors should carefully analyze the industry and the companies before investing in stocks.
