Flow control equipment manufacturer Flowserve (NYSE:FLS) will be reporting results tomorrow after market hours. Here’s what investors should know.
Flowserve met analysts’ revenue expectations last quarter, reporting revenues of $1.13 billion, up 3.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS and adjusted operating income estimates.
Is Flowserve a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Flowserve’s revenue to grow 3% year on year to $1.20 billion, slowing from the 12.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.
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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.
Looking at Flowserve’s peers in the gas and liquid handling segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Standex delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.5%, and IDEX reported revenues up 9.4%, falling short of estimates by 0.6%. Standex traded down 2.2% following the results, while IDEX was also down 9.5%.
Read our full analysis of Standex’s results here and IDEX’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the gas and liquid handling stocks have shown solid performance, the group has generally underperformed, with share prices down 4.6% on average over the last month. Flowserve is down 3.8% during the same time and is heading into earnings with an average analyst price target of $70.80 (compared to the current share price of $62.29).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
