Flowserve (FLS) Q2 Earnings Report Preview: What To Look For

Flow control equipment manufacturer Flowserve FLS will be reporting results this Wednesday after the bell. Here’s what investors should know.

Flowserve beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $1.14 billion, up 5.2% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates.

Is Flowserve a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Flowserve’s revenue to grow 6% year on year to $1.23 billion, slowing from the 7.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 4 upward revisions over the last 30 days (we track 11 analysts). Flowserve has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.5% on average.

Looking at Flowserve’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 2.5%, and Graco reported revenues up 3.4%, falling short of estimates by 3.1%. Gorman-Rupp traded up 9.9% following the results while Graco was down 2.7%.

Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 6.5% on average over the last month. Flowserve is up 9.7% during the same time and is heading into earnings with an average analyst price target of $64.70 (compared to the current share price of $57.45).

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