What To Expect From Flowserve’s (FLS) Q1 Earnings

Flow control equipment manufacturer Flowserve (NYSE:FLS) will be reporting earnings tomorrow after market close. Here’s what to look for.

Flowserve missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $1.18 billion, up 1.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS 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 1.6% year on year to $1.10 billion, slowing from the 10.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Flowserve has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.2% on average.

Looking at Flowserve’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 2.9%, missing analysts’ expectations by 0.5%, and Graco reported revenues up 7.3%, in line with consensus estimates. Gorman-Rupp traded up 6.1% following the results while Graco was also up 2.1%.

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

Investors in the industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Flowserve is down 6.6% during the same time and is heading into earnings with an average analyst price target of $62.30 (compared to the current share price of $45.60).

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