Flowserve Earnings: Profit and Revenue TOP Analyst Expectations

S&P 500 (NYSE:SPY) component Flowserve Corporation (NYSE:FLS) reported net income above Wall Street’s expectations for the second 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 rose to $107.3 million ($1.98 per share) vs. $98.7 million ($1.76 per share) in the same quarter a year earlier. This marks a rise of 8.7% from the year-earlier quarter.

Revenue: Rose 5% to $1.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Flowserve Corporation reported adjusted net income of $2.04 per share. By that measure, the company beat the mean estimate of $1.90 per share. Analysts were expecting revenue of $1.17 billion.

Quoting Management: Mark Blinn, Flowserve president and chief executive officer, said, “I am pleased with our performance in the second quarter and first half of the year. Management focus and operational discipline drove solid execution as we continued to capitalize on investments in our end user strategy and pursue opportunities across our geographically diverse end markets. Our highest level of quarterly and year to date aftermarket bookings highlighted our solid second quarter bookings. Overall, our focus on discipline and selectivity in project pursuit continued to support our bookings performance and improve the quality of orders going into backlog.

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 0.3 percentage point from the year-earlier quarter to 32.5%. In that span, margins have contracted an average of 1.2 percentage points per quarter on a year-over-year basis.

Revenue has risen for the last four quarters. Revenue increased 7.8% to $1.07 billion in the first quarter. The figure rose 11% in the fourth quarter of the last fiscal year from the year earlier and climbed 15.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of $1.64 versus a mean estimate of net income of $1.62 per share.

Net income has increased 5.5% 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: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $2.21 per share, down from $2.24 ninety days ago. For the fiscal year, the average estimate has moved down from $8.61 a share to $8.60 over the last ninety days.

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

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