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Flowserve (FLS) to Report Q1 Earnings: What's in the Cards?
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Flowserve Corporation (FLS - Free Report) is scheduled to release first-quarter 2022 results on May 2, after market close.
The company surpassed estimates once in the last four quarters and missed it thrice, the surprise being a negative 1.93%, on average. Its fourth-quarter 2021 earnings of 45 cents per share lagged the Zacks Consensus Estimate of 48 cents by 6.25%.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have gained 1.7% against the industry’s decline of 12.1%.
Factors at Play
Strength in the company’s oil & gas, chemical, power, general Industrial and water management end markets, along with its strong original equipment and aftermarket bookings, is anticipated to have driven Flowserve’s first-quarter performance. Also, the company’s robust backlog level, which was $2 billion at the end of the previous quarter, is likely to have been beneficial. The Zacks Consensus Estimate for first-quarter revenues from the company’s Flow Control Division segment is currently pegged at $259 million, indicating growth of 1.2% from the year-ago reported figure. The consensus estimate for its Flowserve Pump Division segment’s revenues stands at $601 million, almost in line with the year-ago reported number.
Flowserve’s multi-year Flowserve 2.0 strategy is likely to have enabled it to capture more margin enhancement opportunities with optimization of its manufacturing platform in the quarter. In addition, its focus on enhancing the sales process, along with its supply-chain initiatives, might get reflected in the first-quarter results.
The company’s focus on product innovation and generating healthy free cash flow, along with its effective pricing actions and cost-saving measures, is likely to have boosted its performance in the quarter.
However, supply chain challenges are expected to have adversely impacted FLS’ performance. Logistics issues and a shortage of skilled labor might have affected its margins and profitability in the first quarter. It’s worth noting that its adjusted operating margin declined 200 basis points year over year in the fourth quarter.
Its realignment plan has been fuelling expenses and adversely impacting profitability over the past few quarters — a trend which might have continued in the to-be-reported quarter as well. It’s worth noting that in the fourth quarter, the company’s net income was adversely impacted by realignment expenses of 1 cent per share.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Flowserve has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 21 cents.
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat:
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of Chart Industries have decreased 2.3% for 2022 in the past 60 days. Its shares have gained 31.4% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of Eaton have decreased 0.8% for 2022 in the past 60 days. Its shares have declined 7% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 9.8% in the past three months.
Image: Bigstock
Flowserve (FLS) to Report Q1 Earnings: What's in the Cards?
Flowserve Corporation (FLS - Free Report) is scheduled to release first-quarter 2022 results on May 2, after market close.
The company surpassed estimates once in the last four quarters and missed it thrice, the surprise being a negative 1.93%, on average. Its fourth-quarter 2021 earnings of 45 cents per share lagged the Zacks Consensus Estimate of 48 cents by 6.25%.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have gained 1.7% against the industry’s decline of 12.1%.
Factors at Play
Strength in the company’s oil & gas, chemical, power, general Industrial and water management end markets, along with its strong original equipment and aftermarket bookings, is anticipated to have driven Flowserve’s first-quarter performance. Also, the company’s robust backlog level, which was $2 billion at the end of the previous quarter, is likely to have been beneficial. The Zacks Consensus Estimate for first-quarter revenues from the company’s Flow Control Division segment is currently pegged at $259 million, indicating growth of 1.2% from the year-ago reported figure. The consensus estimate for its Flowserve Pump Division segment’s revenues stands at $601 million, almost in line with the year-ago reported number.
Flowserve’s multi-year Flowserve 2.0 strategy is likely to have enabled it to capture more margin enhancement opportunities with optimization of its manufacturing platform in the quarter. In addition, its focus on enhancing the sales process, along with its supply-chain initiatives, might get reflected in the first-quarter results.
The company’s focus on product innovation and generating healthy free cash flow, along with its effective pricing actions and cost-saving measures, is likely to have boosted its performance in the quarter.
However, supply chain challenges are expected to have adversely impacted FLS’ performance. Logistics issues and a shortage of skilled labor might have affected its margins and profitability in the first quarter. It’s worth noting that its adjusted operating margin declined 200 basis points year over year in the fourth quarter.
Its realignment plan has been fuelling expenses and adversely impacting profitability over the past few quarters — a trend which might have continued in the to-be-reported quarter as well. It’s worth noting that in the fourth quarter, the company’s net income was adversely impacted by realignment expenses of 1 cent per share.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Flowserve has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 21 cents.
Flowserve Corporation Price and EPS Surprise
Flowserve Corporation price-eps-surprise | Flowserve Corporation Quote
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat:
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of Chart Industries have decreased 2.3% for 2022 in the past 60 days. Its shares have gained 31.4% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of Eaton have decreased 0.8% for 2022 in the past 60 days. Its shares have declined 7% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 9.8% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.