The 10-second takeaway
For the quarter ended March 31 (Q1), Flowserve met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped slightly.
Gross margin dropped, operating margin expanded, and net margin shrank.
Flowserve reported revenue of $1.07 billion. The 11 analysts polled by S&P Capital IQ hoped for revenue of $1.07 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $997.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.69. The 10 earnings estimates compiled by S&P Capital IQ predicted $1.62 per share. GAAP EPS of $1.69 for Q1 were 1.7% lower than the prior-year quarter's $1.72 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.4%, 150 basis points worse than the prior-year quarter. Operating margin was 12.8%, 30 basis points better than the prior-year quarter. Net margin was 8.7%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $2.01.
Next year's average estimate for revenue is $4.80 billion. The average EPS estimate is $8.66.
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 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 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 $140.80.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.