Flowserve (FLS) Reports Earnings Tomorrow: What To Expect

Flow control equipment manufacturer Flowserve (NYSE:FLS) will be reporting earnings this Tuesday afternoon. Here’s what investors should know.

Flowserve missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $1.19 billion, up 2.7% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is Flowserve a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Flowserve’s revenue to grow 6.6% year on year to $1.21 billion, improving from the 3.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.Flowserve Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Flowserve has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Flowserve’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 2.8%, missing analysts’ expectations by 1%, and Graco reported revenues up 4.7%, falling short of estimates by 3%. Graco’s stock price was unchanged following the results.

Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.7% on average over the last month. Flowserve’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $66.50 (compared to the current share price of $53.40).

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