Flowserve (NYSE:FLS) Shares Up 8% on Earnings Beat

Key Points

• Flowserve shares rose 8% after the company reported quarterly earnings of $1.07 per share, beating analysts’ $0.98 estimate. Revenue reached $1.24 billion, in line with expectations and up 5.4% year over year.
• The company declared a quarterly dividend of $0.22 per share, equal to an annualized $0.88 payout and a 1.1% yield.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $85.40; institutional investors own 93.93% of Flowserve’s stock.

Shares of Flowserve Corporation (NYSE:FLS - Get Free Report) were up 8% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $78.46 and last traded at $77.59. 341,579 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 1,862,682 shares. The stock had previously closed at $71.81.

The industrial products company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.98 by $0.09. Flowserve had a return on equity of 21.42% and a net margin of 8.01%. The business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.24 billion. During the same quarter in the prior year, the business posted $0.90 earnings per share. The business's quarterly revenue was up 5.4% on a year-over-year basis.

Flowserve Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Friday, September 25th were issued a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, September 25th. Flowserve's dividend payout ratio is currently 30.88%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on FLS shares. Weiss Ratings raised shares of Flowserve from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, October 21st. Robert W. Baird set a $93.00 price objective on shares of Flowserve in a research note on Friday, July 31st. The Goldman Sachs Group set a $82.00 price objective on shares of Flowserve in a research report on Thursday, July 30th. Royal Bank Of Canada lowered their target price on shares of Flowserve from $94.00 to $88.00 and set an "outperform" rating on the stock in a research note on Wednesday, October 14th. Finally, Mizuho dropped their target price on shares of Flowserve from $91.00 to $85.00 and set an "outperform" rating for the company in a report on Thursday, October 15th. Seven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $85.40.

Institutional Investors Weigh In On Flowserve

Several large investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in Flowserve during the 2nd quarter valued at about $999,631,000. PointState Capital LP acquired a new position in Flowserve in the second quarter valued at approximately $196,837,000. Bank of New York Mellon Corp purchased a new stake in shares of Flowserve during the 2nd quarter worth about $177,380,000. Bank of America Corp DE acquired a new stake in Flowserve in the 2nd quarter valued at $144,400,000. Finally, William Blair Investment Management LLC purchased a new stake in Flowserve during the 2nd quarter worth approximately $84,869,000. Institutional investors own 93.93% of the company's stock.

Flowserve Stock Up 9.3%

The company has a market cap of $9.98 billion, a PE ratio of 27.56, a price-to-earnings-growth ratio of 1.52 and a beta of 1.23. The business has a fifty day simple moving average of $74.25 and a two-hundred day simple moving average of $76.37. The company has a current ratio of 2.15, a quick ratio of 1.58 and a debt-to-equity ratio of 0.91.

About Flowserve

Flowserve Corporation is a global manufacturer of flow-control equipment and related services. The company designs, produces and services pumps, valves, mechanical seals and associated systems used to move, control and protect fluids in industrial processes.

Its products and services support applications across the energy, chemical and petrochemical, water, pharmaceutical, mining, power and general industrial markets. Flowserve also provides aftermarket services, including equipment repair, maintenance, upgrades and replacement parts, helping customers improve the reliability and efficiency of their operations.

Headquartered in Irving, Texas, Flowserve serves customers through manufacturing, sales and service operations in North America, Europe, Asia and other international markets.

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