Flowserve's Q3 Earnings Miss Estimates, Revenues Increase Y/Y

Core Insights - Flowserve Corporation's third-quarter 2024 adjusted earnings per share were 62 cents, missing the Zacks Consensus Estimate of 67 cents, but reflecting a 24% year-over-year increase [1] - Total revenues for the quarter were $1,133 million, surpassing the consensus estimate of $1,127 million, with a year-over-year increase of 3.5% [2] - Total bookings reached $1.2 billion, marking a 12.7% year-over-year increase, with a backlog of $2.8 billion at the end of the quarter, up 3.7% sequentially [3] Revenue and Sales Performance - Flowserve's revenues from the Pump Division were $782.1 million, up 2.1% year over year, with bookings increasing 20.7% to $886.6 million [4] - The Control Division generated revenues of $353.1 million, a 6.8% year-over-year increase, although bookings decreased 3.7% to $318.4 million [5] Margin and Cost Analysis - The cost of sales remained flat at $776 million, while gross profit increased 12.4% to $357.1 million, resulting in a gross margin of 31.5%, up 250 basis points [6] - Operating income rose 46.8% year over year to $103.2 million, with an operating margin of 9.1%, up 270 basis points [6] Balance Sheet and Cash Flow - At the end of the third quarter, Flowserve had cash and cash equivalents of $611.7 million, up from $545.7 million at the end of 2023, with long-term debt stable at $1.17 billion [7] - The company generated net cash of $228 million from operating activities in the first nine months of 2024, compared to $131.1 million in the previous year [7] Dividend and Share Repurchase - During the same period, Flowserve distributed $82.8 million in dividends and repurchased shares worth $20.1 million [8] 2024 Guidance - Flowserve expects a revenue increase of 4-6% from the previous year, with earnings per share projected between $2.15 and $2.35, and adjusted earnings per share estimated in the range of $2.60–$2.75 [9][10]