The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Flowserve met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Flowserve recorded revenue of $1.33 billion. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $1.32 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $3.62. The 14 earnings estimates compiled by S&P Capital IQ averaged $2.84 per share. Non-GAAP EPS of $3.62 for Q4 were 61% higher than the prior-year quarter's $2.25 per share. GAAP EPS of $2.82 for Q4 were 25% higher than the prior-year quarter's $2.25 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 33.7%, 50 basis points better than the prior-year quarter. Operating margin was 15.0%, 20 basis points better than the prior-year quarter. Net margin was 10.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $2.05.
Next year's average estimate for revenue is $4.99 billion. The average EPS estimate is $10.29.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 827 members out of 846 rating the stock outperform, and 19 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give Flowserve a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Flowserve is outperform, with an average price target of $158.38.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.