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

Flow control equipment manufacturer Flowserve (NYSE: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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