Flow control equipment manufacturer Flowserve (NYSE: FLS) will be reporting results this Wednesday after market hours. Here’s what to expect.
Flowserve missed analysts’ revenue expectations last quarter, reporting revenues of $1.07 billion, down 6.7% year on year. It was a slower quarter for the company, with full-year EPS guidance meeting analysts’ expectations.
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 decline 2.5% year on year, a reversal from the 2.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 3.9%, missing analysts’ expectations by 1.5%, and Graco reported revenues up 3.3%, falling short of estimates by 3%. Gorman-Rupp traded up 1.2% following the results while Graco was also up 5.2%.
Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Flowserve is down 1.7% during the same time and is heading into earnings with an average analyst price target of $88.50 (compared to the current share price of $72.03).
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