Flowserve Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Flowserve (NYSE:FLS) will unveil its latest earnings on Monday, July 30, 2012. Flowserve develops and manufactures flow control products and systems for the world’s most critical applications.

Flowserve Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.90 per share, a decline of 2.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.99. Between one and three months ago, the average estimate moved down. It also has dropped from $1.93 during the last month. For the year, analysts are projecting net income of $8.60 per share, a rise of 10% from last year.

Last quarter, the company came in at profit of $1.64 per share against a mean estimate of net income of $1.62 per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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Stock Price Performance: Between April 27, 2012 and July 24, 2012, the stock price fell $5.93 (-5.1%), from $115.88 to $109.95. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 10% (+$10.67) over that span. It saw one of its worst periods between February 27, 2012 and March 6, 2012 when shares fell for seven straight days, dropping 6.1% (-$7.32) over that span.

A Look Back: In the first quarter, profit fell 4% to $93.1 million ($1.69 a share) from $97 million ($1.72 a share) the year earlier, but exceeded analyst expectations. Revenue rose 7.8% to $1.07 billion from $997.2 million.

Wall St. Revenue Expectations: Analysts predict a rise of 3.5% in revenue from the year-earlier quarter to $1.17 billion.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 7.7% in the second quarter of the last fiscal year, 3.7% in the third quarter of the last fiscal year and 11.2% in the fourth quarter of the last fiscal year before declining in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 17.1% in the second quarter of the last fiscal year, 15.5% in the third quarter of the last fiscal year and 11% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.89 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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