Flowserve Corporation will announce its fourth-quarter 2023 results after the market closes on Feb 20, 2024.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has remained stable in the past 60 days. Flowserve has an impressive track record of surpassing the consensus estimate, with an average beat of 27.3% over the last four quarters.
Factors to Note
Flowserve’s Pump Division segment’s fourth-quarter 2023 performance is expected to have gained from higher aftermarket and original equipment customer sales. The Zacks Consensus Estimate for the segment’s gross sales is pegged at $800 million, indicating an 8.3% rise from the fourth-quarter 2022 reported number.
Robust aftermarket and customer original equipment sales are likely to support the results of the Flow Control Division segment in the fourth quarter. The consensus estimate for gross sales of the segment is pegged at $335 million, indicating a 10.9% increase from the year-ago quarter’s reported number.
Record levels of booking due to strong maintenance, repair, and operations, and aftermarket activity have been driving Flowserve’s growth. The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $1.1 billion, suggesting an increase of 9.3% from the year-ago quarter’s reported figure.
However, the rising cost of sales due to raw material inflation is likely to have partially dented FLS’ bottom line in the to-be-reported quarter. The consensus estimate for the company’s adjusted earnings is pegged at 61 cents per share, indicating a 3.2% decline from the year-ago quarter’s reported number.
The company’s international presence exposes it to the risk of adverse currency fluctuations, which is expected to have hurt its performance in the to-be-reported quarter.
Flowserve Corporation Price and Consensus
Flowserve Corporation price-consensus-chart | Flowserve Corporation Quote
Earnings Whispers
Our proven model predicts an earnings beat for Flowserve this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Flowserve has an Earnings ESP of +1.22% as the Most Accurate Estimate is pegged at 62 cents, which is higher than the Zacks Consensus Estimate of 61 cents per share.
Zacks Rank: Flowserve presently carries a Zacks Rank of 2.
Highlights of Q3 Earnings
Flowserve’s third-quarter 2023 adjusted earnings of 50 cents per share beat the Zacks Consensus Estimate of 41 cents. The bottom line increased 455.6% year over year. The company’s total sales of $1,094.7 million beat the consensus estimate of $1,020 million. The top line increased 25.4% year over year. Sales increased 23% on a constant-currency basis.
Other Stocks to Consider
Some other companies within the broader Industrial Products sector, with the potential to beat earnings this reporting cycle include:
Nordson Corporation (NDSN), Graphic Packaging Holding Company (GPK), and Sealed Air Corporation (SEE).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
