Flow control equipment manufacturer Flowserve (NYSE: FLS) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
Flowserve missed analysts’ revenue expectations last quarter, reporting revenues of $1.22 billion, up 3.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Flowserve a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Flowserve’s revenue to grow 2.3% year on year, slowing from the 5.2% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Flowserve’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 3.5%, and Graco reported revenues up 2.2%, falling short of estimates by 3.9%. Gorman-Rupp traded up 16.2% following the results while Graco was down 3.9%.
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 15.1% on average over the last month. Flowserve is up 27.9% during the same time and is heading into earnings with an average analyst price target of $96.10 (compared to the current share price of $88.43).
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