Preview: Flowserve's Earnings

Flowserve FLS is gearing up to announce its quarterly earnings on Monday, 2024-10-28. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Flowserve will report an earnings per share (EPS) of $0.66.

Flowserve bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

The company's EPS beat by $0.10 in the last quarter, leading to a 3.26% drop in the share price on the following day.

Here's a look at Flowserve's past performance and the resulting price change:

Flowserve Share Price Analysis

Shares of Flowserve were trading at $52.52 as of October 24. Over the last 52-week period, shares are up 44.12%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Flowserve

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Flowserve.

The consensus rating for Flowserve is Buy, based on 10 analyst ratings. With an average one-year price target of $59.2, there's a potential 12.72% upside.

Peer Ratings Overview

The below comparison of the analyst ratings and average 1-year price targets of ESAB, Watts Water Technologies and Middleby, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for ESAB, with an average 1-year price target of $120.4, indicating a potential 129.25% upside.
• Analysts currently favor an Neutral trajectory for Watts Water Technologies, with an average 1-year price target of $200.5, suggesting a potential 281.76% upside.
• Middleby is maintaining an Buy status according to analysts, with an average 1-year price target of $154.25, indicating a potential 193.7% upside.

Overview of Peer Analysis

The peer analysis summary provides a snapshot of key metrics for ESAB, Watts Water Technologies and Middleby, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Flowserve ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Flowserve is at the bottom compared to its peers.

All You Need to Know About Flowserve

Flowserve Corp is a manufacturer and aftermarket service provider of comprehensive flow control systems. It develops precision-engineered flow control equipment to monitor movement and protect customers' materials and processes. It offers an extensive range of pumps, valves, seals, and services for several industries, including oil and gas, chemical, power generation, and water management. In addition, Flowserve has a network of Quick Response Centers to provide aftermarket equipment services. The aftermarket services help customers with installation, diagnostics, repair, and retrofitting. Sales are roughly split across many regions, with North America and Europe contributing the majority of total revenue.

Understanding the Numbers: Flowserve's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Flowserve's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 7.08%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Flowserve's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.28%, the company may face hurdles in effective cost management.

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): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.41%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Flowserve's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Flowserve visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.