Flowserve (FLS) shares ended the last trading session 7.3% higher at $52.14. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.2% loss over the past four weeks. Flowserve's rally is largely driven by optimism over its strong momentum in the Flowserve Pump Division and Flow Control Division segments. Also, the acquisition of the intellectual property and in-process R&D related to cryogenic liquefied natural gas (LNG ...

Investors in Flowserve Corporation (FLS) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $25.00 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It coul ...

Flowserve Corporation (FLS) stands to benefit from strength across its businesses, focus on operational excellence and solid liquidity position. The company remains focused on investing in growth opportunities and strengthening its long-term market position. FLS, which has a market capitalization of $6.5 billion, currently carries a Zacks Rank #2 (Buy). Let's delve into the factors that have been aiding the firm for a while now. End-Market Strength: The company is witnessing several positive trends in its k ...

Flowserve (FLS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earnings pict ...

Flowserve Corporation (FLS) recently announced that it has signed a definitive deal to acquire MOGAS Industries for $290 million in cash with a potential $15 million earnout. The company is anticipated to fund the transaction through cash and available debt financing. Based in Houston, TX, MOGAS is engaged in providing mission-critical severe service valves and related aftermarket services. The company's products are sold to several end markets, including power, mining and process industries. It has an exte ...

Flowserve Corporation (FLS) is experiencing strong momentum in the Flowserve Pump Division and Flow Control Division segments. Strength in the aftermarket and original equipment businesses, driven by an increase in demand for products and services in North America, Europe Middle East and Latin America, is a prime catalyst for the Flowserve Pump Division segment's growth (revenues were up 6.1% year over year in the second quarter). An increase in original equipment sales in the Middle East, North America, As ...

Flowserve Corporation's (FLS) second-quarter 2024 adjusted earnings (excluding 18 cents from non-recurring items) of 73 cents per share beat the Zacks Consensus Estimate of 63 cents. The bottom line increased 40.4% year over year. Results primarily benefited from higher revenues, partially offset by an increase in operating costs and expenses. Flowserve's total revenues of $1.16 billion beat the consensus estimate of $1.12 billion. The top line increased 7.1% year over year. Sales increased 7.7% on a consta ...

Financial Data and Key Metrics - Revenue for Q2 2024 was $1.15 billion, a 7% increase year-over-year [5][10] - Adjusted gross margin increased by 200 basis points to 32.3%, and adjusted operating margin increased by 210 basis points to 12.5% [5][10] - Adjusted earnings per share (EPS) increased by over 40% to $0.73 [10] - Bookings reached $1.25 billion, a 12% increase year-over-year and 20% sequential growth, with a book-to-bill ratio of 1.08x [10] - Backlog grew by $70 million sequentially to $2.7 billion [10] Business Line Performance - The aftermarket business achieved record bookings of $614 million, marking the seventh consecutive quarter above $550 million [17][78] - The chemicals market saw $272 million in bookings, a 14% year-over-year increase, driven by a major petrochemical project in Saudi Arabia [46] - Power generation bookings were $153 million, a 34% increase year-over-year, with nuclear activity contributing over $70 million [27] - The mining sector is expected to grow, with current efforts contributing roughly $100 million annually, and plans to expand through organic and inorganic strategies [28] Market Performance - Oil and gas generated the highest dollar growth, with a 22% year-over-year increase, driven by large projects in the Middle East [23] - Middle East bookings grew significantly due to three large projects, while Europe and Asia-Pacific saw slight declines [24] - The project funnel increased by 8% year-over-year, with strong visibility into opportunities in the Middle East and other regions [24] Strategic Direction and Industry Competition - The company is focused on operational and product excellence, aiming for 100-200 basis points of margin improvement by 2027 [12][65] - The 3D strategy (Decarbonization, Diversification, Digitization) represents over 25% of total bookings, with a focus on energy transition and digital solutions [45][48] - The acquisition of in-process R&D for submerged cryogenic pumps in LNG aims to strengthen the company's position in the energy transition market [18][96] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, with a focus on margin expansion and operational improvements [21][60] - The company expects a stronger second half of 2024, with adjusted EPS guidance raised to $2.60-$2.75, representing a 27% increase year-over-year [29][31] - The macro environment remains favorable, driven by global megatrends such as energy transition, decarbonization, and digitization [48] Other Important Information - The company launched a product excellence program, with early progress expected to show results in late 2024 and 2025 [12][65] - Red Raven, the company's IoT offering, is gaining traction, with 2,250 assets instrumented and positive customer feedback [110][130] - The company is actively managing pricing, with a 4-5% price increase announced at the beginning of the year, and improved project pricing environments [126][127] Q&A Session Summary Question: Gross margin trends and FCD performance [131][143] - The company is focused on operational and product excellence to expand margins, with a target of 150 basis points or more in 2024 [143] - FCD's gross margins are impacted by product mix, but improvements are expected in the second half of the year [162] Question: Aftermarket business sustainability [17][78] - The aftermarket business is expected to remain strong, driven by high utilization rates and pent-up demand, with a focus on improving capture rates [78][118] Question: LNG and cryogenic pump acquisition [96][158] - The acquisition of cryogenic pump technology is expected to generate $50 million in annual revenue by 2026-2027, with potential for additional market share in LNG [96][158] Question: Nuclear and power generation outlook [102][120] - Nuclear power generation is expected to grow, with strong visibility into life extensions and new projects in Europe and North America [102][120] - Power demand is increasing, driven by electrification and data center growth, with a 20% increase in power bookings year-over-year [120][124] Question: Pricing environment [126][127] - The company has improved pricing discipline, with a 4-5% price increase and better project pricing environments [126][127] Question: Red Raven adoption and digital capabilities [110][130] - Red Raven adoption is progressing, with 2,250 assets instrumented and positive customer feedback, leading to repeat orders and increased aftermarket opportunities [110][130]

Hans-Peter Merten Author - SEC EDGAR Data Author - SEC EDGAR Data REVISED 2024 ADJUSTED EPS' GUIDANCE 2023 2024 2027 · Updated quidance 27% above 2023 adjusted EP $4.3B $4.5B $5.0B Revenue Substantial progress towards 2027 targets Adiusted 9.5% Opportunities for margin Operating >11.5% 14 - 16% expansion include Margin" operational and product excellence Adjusted $2.10 $2.67 >$4.00 EPS An interesting quarter $1,156.9 $1,080. $154.9 5570.0 $142.5 $130.3 $115.6 $580.0 $72.6 $51.2 $290.0 $2.244.4 $2,500.0 $2,0 ...

For the quarter ended June 2024, Flowserve (FLS) reported revenue of $1.16 billion, up 7.1% over the same period last year. EPS came in at $0.73, compared to $0.52 in the year-ago quarter. Here is how Flowserve performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Sales- FPD: $810.61 million compared to the $797.94 million average estimate based on four analysts. The reported number represents a change of +5.9% year over year. Sales- FCD: ...