Flowserve Beats on Both Top and Bottom Lines
Flowserve (NYS: FLS) reported earnings on July 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Flowserve beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins contracted, operating margins improved, net margins increased.
Revenue details
Flowserve tallied revenue of $1.18 billion. The 10 analysts polled by S&P Capital IQ looked for a top line of $1.17 billion on the same basis. GAAP reported sales were 5.0% higher than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.98. The 10 earnings estimates compiled by S&P Capital IQ anticipated $1.91 per share. GAAP EPS of $1.98 for Q2 were 13% higher than the prior-year quarter's $1.76 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 32.5%, 30 basis points worse than the prior-year quarter. Operating margin was 13.6%, 150 basis points better than the prior-year quarter. Net margin was 9.1%, 30 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $2.20.
Next year's average estimate for revenue is $4.76 billion. The average EPS estimate is $8.58.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 842 members out of 862 rating the stock outperform, and 20 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give Flowserve a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Flowserve is buy, with an average price target of $145.00.
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The article Flowserve Beats on Both Top and Bottom Lines originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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