Flowserve Earnings: Here’s Why Investors are Buying Shares Now

Flowserve Corp. (NYSE:FLS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.53%.

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Flowserve Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.93% to $2.01 in the quarter versus EPS of $1.69 in the year-earlier quarter.

Revenue: Rose 2.01% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Flowserve Corp. reported adjusted EPS income of $2.01 per share. By that measure, the company beat the mean analyst estimate of $1.94. It missed the average revenue estimate of $1.11 billion.

Quoting Management: “We are pleased with our 2013 first quarter performance, which represents a solid start to the year and provides confidence in our full year EPS target range,” remarked Mark Blinn, Flowserve`s president and chief executive officer. “The continued hard work and dedication of Flowserve`s associates is appreciated and has positioned us well for the remainder of the year.

Key Stats (on next page)…

Revenue decreased 17.44% from $1.33 billion in the previous quarter. EPS decreased 28.98% from $2.83 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.49 to a profit $2.45. For the current year, the average estimate has moved down from a profit of $10.42 to a profit of $10.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)