Flowserve Corp. Earnings: Keeping the Profitability Streak Alive

S&P 500 (NYSE:SPY) component Flowserve Corporation (NYSE:FLS) reported its results for the third quarter. Flowserve develops and manufactures flow control products and systems for the world’s most critical applications.

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Flowserve Corporation Earnings Cheat Sheet

Results: Net income for Flowserve Corporation fell to $106.3 million ($2.07 per share) vs. $107.8 million ($1.92 per share) a year earlier. This is a decline of 1.4% from the year-earlier quarter.

Revenue: Rose 4.3% to $1.17 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Flowserve Corporation was about in line with expectations as the mean analyst estimate of $2.05 per share. It fell exactly in line with the average revenue estimate of $1.17 billion.

Quoting Management: Mark Blinn, Flowserve president and chief executive officer, said, “I am pleased with our performance in the third quarter, where solid top line growth, operational progress and improved SG&A leverage drove earnings growth. Our bookings growth was varied across our product lines, served industries and geographic regions, underscoring how our diverse global platform works to manage risk. Solid aftermarket bookings reflected normal seasonal activity and drove our highest level of quarter-end aftermarket backlog, which continues to support a near $2 billion annual run rate for this business.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 5% to $1.18 billion in the second quarter. The figure rose 7.8% in the first quarter from the year earlier and climbed 11% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the second quarter and by 2 cents in the first quarter.

Net income has increased 3.7% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 11.2% from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $2.80 per share from $2.77. For the fiscal year, the average estimate has moved down from $8.55 a share to $8.49 over the last ninety days.

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

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