Flowserve (FLS) Misses Q2 EPS by 21c, Miss on Revenues; Lowers FY17 EPS Guidance

Flowserve (NYSE: FLS) reported Q2 EPS of $0.22, $0.21 worse than the analyst estimate of $0.43. Revenue for the quarter came in at $877 million versus the consensus estimate of $933.93 million.

Full Year 2017 Guidance

Flowserve updated its 2017 guidance to reflect its first half results and expectations for the remainder of the year, and now expects Reported and Adjusted[3] EPS target ranges of $0.85 to $1.05 and $1.30 to $1.50, respectively. Both EPS target ranges are based on an expected 6 to 10 percent decline in revenues year-over-year. Adjusted EPS guidance anticipates a return to the guided tax rate, of 30-to-31%, for the remainder of the year, and it excludes expected realignment expense, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items, such as the gain on sale of our Gestra business, finalized in the second quarter 2017.

GUIDANCE:

Flowserve sees FY2017 EPS of $0.85-$1.30, versus the consensus of $1.78.

Second Quarter 2017 Highlights (all comparisons to 2016 second quarter, unless otherwise noted)

• Reported Earnings Per Share (EPS) of $0.32
• Adjusted EPS[1] was $0.22 and excludes a net gain of $0.10 per share from adjusted items and was impacted by an adjusted tax rate of 46.3%
• Sales were $877 million, down 13.6% on a constant currency basis, including an approximately 2% negative impact related to the previously announced Gestra business divestiture
• Aftermarket sales were $435 million, down 3.6% on a constant currency basis
• Total bookings were $971 million, up 0.8% on a constant currency basis, including approximately 2% negative impact due to the Gestra divestiture
• Original equipment bookings were $514 million, up 5.1% on a constant currency basis
• Aftermarket bookings were $458 million, or 47% of total bookings, down 3.7% on a constant currency basis
• Total book-to-bill was 1.11
• Reported gross and operating margins of 27.9% and 14.4%
• Adjusted gross and operating margins[2] were 31.5% and 8.1%
• Backlog at June 30, 2017 was $2.1 billion, up 12.4% and 1.5% versus 2016 year-end, and prior year second quarter, respectively

For earnings history and earnings-related data on Flowserve (FLS) click here.

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• Stifel Starts Victrex Plc. (VCT:LN) (VTXPF) at Buy
• C.H. Robinson acquires DeSpir Logistics for $75 million