Flowserve has posted a hat-trick of negative surprises, beating estimates just once in the trailing four quarters. Primarily, the bottom-line is hurting from negative currency translation and higher SG&A expenses. Cautious spending by clients due to reduced activities in the oil and gas markets is proving to be a major concern for Flowserve’s projects and orders. Especially, the company believes limited project activity in Middle East will act as a major spoilsport, hurting aftermarket activities. On account of these factors, Flowserve anticipates revenues to decline in the range of 7–14% year over year. Although Flowserve’s realignment plan should benefit it over the long haul, it will drive expenses in the near term. However, the company’s internal restructuring actions and cost-saving initiatives are expected to offset some of these weaknesses, thereby driving growth.