Flowserve Earnings Preview: What to Expect on October 28th

Flowserve Earnings Preview: What to Expect on October 28th

Flowserve Corp., a prominent player in the flow control systems market, is poised to unveil its quarterly earnings on Monday, October 28th. Investors are eager to see how the company has performed and what its outlook for the future holds.

Analyst Expectations and Key Metrics

Analysts are projecting an earnings per share (EPS) of $0.66 for the quarter. While beating this estimate would be a positive sign, investors should also pay close attention to Flowserve’s guidance, or forecast, for the upcoming quarter. Often, it’s not just the earnings beat or miss that influences stock prices but the company’s outlook for future growth.

Flowserve’s Recent Performance: A Mixed Bag

In the previous quarter, Flowserve exceeded EPS expectations by $0.10, but this positive news was overshadowed by a 3.26% drop in the share price the following day. This highlights the importance of guidance, as investor sentiment can be heavily influenced by the company’s outlook.

Here’s a closer look at Flowserve’s past performance and the resulting price changes:

| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.63 | $0.73 | -3.0% |
| Q1 2024 | $0.47 | $0.58 | -0.0% |
| Q4 2023 | $0.60 | $0.68 | 1.0% |
| Q3 2023 | $0.43 | $0.50 | 4.0% |

Long-Term Shareholder Sentiment Remains Positive

As of October 24th, Flowserve’s shares were trading at $52.52. Over the past year, the stock has seen a remarkable 44.12% increase. This strong performance suggests a bullish outlook among long-term investors heading into the earnings announcement.

Analyst Perspectives and Peer Comparisons

Understanding market sentiment and industry expectations is crucial for investors. Here’s a breakdown of the latest insights on Flowserve and its peers:

*

Flowserve:

The consensus rating among analysts is

Buy

, based on 10 ratings. The average one-year price target is $59.2, representing a potential 12.72% upside.

*

ESAB:

Analysts favor an

Outperform

trajectory for ESAB, with an average one-year price target of $120.4, indicating a potential 129.25% upside.

*

Watts Water Technologies:

Analysts currently have a

Neutral

rating for Watts Water Technologies, with an average one-year price target of $200.5, suggesting a potential 281.76% upside.

*

Middleby:

Analysts maintain a

Buy

rating for Middleby, with an average one-year price target of $154.25, indicating a potential 193.7% upside.

Peer Analysis: A Comparative Look

| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Flowserve | Buy | 7.08% | $366.10M | 3.70% |
| ESAB | Outperform | -1.86% | $270.31M | 4.95% |
| Watts Water Technologies | Neutral | 12.11% | $284.80M | 5.17% |
| Middleby | Buy | -4.66% | $379.64M | 3.43% |

Key Takeaways from Peer Analysis:

* Flowserve lags behind its peers in terms of revenue growth.
* Flowserve sits in the middle of the pack regarding Gross Profit.
* Flowserve falls short in terms of Return on Equity compared to its peers.

Flowserve’s Business Overview

Flowserve Corp. is a leading manufacturer and aftermarket service provider of comprehensive flow control systems. The company designs and engineers high-precision flow control equipment, ensuring the safe and efficient movement of materials in various industries. Its product portfolio includes pumps, valves, seals, and a wide range of services. Flowserve’s core markets include oil and gas, chemical processing, power generation, and water management.

The company also operates a network of Quick Response Centers, offering aftermarket services such as installation, diagnostics, repair, and retrofitting. These services play a critical role in supporting customers and ensuring the optimal performance of their flow control systems.

Financial Highlights and Key Metrics:

*

Market Capitalization:

Flowserve’s market capitalization falls below industry averages, indicating a smaller size compared to its peers. This could be attributed to factors such as perceived growth potential or operational scale.
*

Revenue Growth:

Flowserve has shown strong revenue growth over the past three months. As of June 30, 2024, the company achieved a revenue growth rate of approximately 7.08%, exceeding the average growth rate within the Industrials sector.
*

Net Margin:

Flowserve’s net margin is below industry averages, suggesting potential challenges in maintaining strong profitability. The company’s net margin stands at 6.28%, indicating potential hurdles in effectively managing costs.
*

Return on Equity (ROE):

Flowserve’s ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.7%, the company may face hurdles in achieving optimal financial returns.
*

Return on Assets (ROA):

Flowserve’s ROA falls below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. The company’s ROA of 1.41% suggests potential challenges in generating satisfactory returns from its assets.
*

Debt Management:

Flowserve’s debt-to-equity ratio is significantly higher than the industry average, indicating a greater reliance on borrowed funds and higher financial risk. The ratio stands at 0.74.

Stay Informed on Flowserve’s Earnings Release

To stay updated on all of Flowserve’s earnings releases, visit their earnings calendar on [Insert Website Name].

Disclaimer:

This article is for informational purposes only and is not intended as investment advice. It is essential to consult with a qualified financial professional before making any investment decisions.