NYSE$FLS

Flowserve Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Flowserve's first quarter results were reported with adjusted EPS of $0.40 and revenue growth of 19.4%.

Flowserve Corporation reported a strong start to 2023, with revenue growth of 19.4% and adjusted operating margin of 8.3%. The company raised its full-year guidance for revenue and adjusted EPS, driven by strong MRO and Aftermarket activity and the continued success of its 3D strategy.

  • Achieved fifth consecutive quarter of bookings above $1 billion, with $1.06 billion delivered in the first quarter.
  • Revenue increased by 19.4%, with an adjusted operating margin of 8.3%.
  • Book-to-bill ratio of 1.08x increased backlog by 2.6%, or $71 million, to $2.8 billion sequentially.
  • Velan acquisition is now expected to close early in the third quarter of 2023.

Headline financials

Total Revenue

$980M

Previous: $821M+19.4%
EPS (adj)

$0.40

Previous: $0.07+471.4%
Total Bookings

$1.06B

Previous: $1.09B-2.8%
Total Backlog

$2.8B

Previous: $2.23B+25.6%
Operating Margin

5.8%

Previous: 0.9%+544.4%
Free Cash Flow

$26.8M

Previous: -$15.8M+269.2%
Net Income

$26.8M

Previous: -$15.8M+269.2%
Operating Income

$57.2M

Previous: $7.37M+676.2%
Gross Profit

$297M

Previous: $210M+41.6%
Cash & Equivalents

$405M

Previous: $576M-29.7%
Total Assets

$4.88B

Previous: $4.7B+3.7%
Stock-Based Comp

$9.95M

Previous: $11M-9.6%

Revenue & EPS history

Flowserve · Revenue · Quarterly

$980M

Q1 2023+19.4%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Flowserve · $980M total across 2 segments · Q1 2023

  • Aftermarket Bookings
    $517M
  • Original Equipment Bookings
    $464M

Forward guidance

Flowserve is raising its Revenue and Adjusted EPS guidance metrics for 2023, as well as re-affirming certain other financial metrics.

Tailwinds

  • Revenue Growth: Up 10.0% to 12.0%
  • Adjusted Earnings Per Share: $1.65 - $1.85
  • Net Interest Expense: $55 - $60 million (Re-affirmed)
  • Adjusted Tax Rate: 18% - 20% (Re-affirmed)
  • Capital Expenditures: $75 - $85 million (Re-affirmed)

Headwinds

  • The outlook excludes any contribution from the previously announced pending acquisition of Velan Inc.
  • Adjusted EPS target range also excludes expected adjusted items including realignment charges of approximately $25 million
  • Potential impact of below-the-line foreign currency effects
  • Certain other discrete items which may arise during the course of the year.
  • FX impact is calculated by comparing the difference between the actual average FX rates of 2023 and the year-end 2022 spot rates both as applied to our 2023 expectations, divided by the number of shares expected for 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-1.3%

Avg return

30 days after

54%

38 / 71 earnings

Positive

+30.9%

Q3 2025

Best reaction

-12.7%

Q3 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-16.7%-10.4%
Q4 2025+8.4%+9.6%-3.5%
Q3 2025+30.9%+36.4%+35.5%
Q1 2025+0.8%+5.2%+11.2%
Q4 2024-6.5%-13.1%-19.9%
Q3 2024+2.8%+1.7%+15.3%
Q2 2024-2.9%-7.6%-3.9%
Q1 2024+0.9%+1.6%+4.0%
Q4 2023-0.8%-1.8%+7.1%
Q3 2023+0.8%+0.1%+4.6%
Q2 2023+3.4%+3.7%+4.8%
Q1 2023+5.2%+5.9%-2.5%
Q4 2022-4.8%-2.7%-12.5%
Q3 2022-2.9%+4.5%+9.3%
Q2 2022+8.7%+11.8%+4.4%
Q1 2022-4.2%-4.5%-3.5%
Q4 2021-7.8%-5.7%+8.9%
Q3 2021-11.1%-8.7%-15.4%
Q2 2021-5.7%-6.8%-11.1%
Q1 2021+5.8%+7.6%+7.1%
Q4 2020-1.0%-5.5%-2.2%
Q3 2020-4.6%+9.9%+18.5%
Q2 2020-8.5%-7.2%+0.3%
Q1 2020+0.5%-12.2%+18.5%
Q4 2019-0.9%-0.9%-56.2%
Q3 2019-2.3%+1.8%-2.6%
Q2 2019-11.6%-13.2%-16.9%
Q1 2019+6.3%+1.4%-5.1%
Q4 2018-1.8%-1.9%-7.9%
Q3 2018+10.0%+2.2%-5.8%
Q2 2018+6.2%+8.7%+14.3%
Q1 2018-9.0%-9.0%-11.8%
Q4 2017+4.4%+3.6%+5.6%
Q3 2017-11.2%-9.2%-3.8%
Q2 2017-11.4%-10.8%-17.6%
Q1 2017-1.8%-1.7%-4.7%
Q4 2016-5.5%-5.5%-8.2%
Q3 2016-3.5%-3.8%+7.2%
Q1 2016+2.0%
Q4 2015-4.2%
Q3 2015+3.7%
Q2 2015+0.1%
Q1 2015-3.8%
Q4 2014+3.7%
Q3 2014+0.1%
Q2 2014+4.8%
Q1 2014-6.0%
Q4 2013+5.4%
Q3 2013+11.8%
Q2 2013+0.8%
Q1 2013+2.4%
Q4 2012+2.2%
Q3 2012+3.5%
Q2 2012+3.3%
Q1 2012-2.1%
Q4 2011+2.2%
Q3 2011+11.3%
Q2 2011-8.4%
Q1 2011+3.1%
Q4 2010-0.2%
Q3 2010-12.7%
Q2 2010+2.7%
Q1 2009-3.0%
Q1 2010+2.8%
Q4 2007+0.4%
Q4 2009+0.4%
Q3 2009-0.4%
Q3 2008-0.4%
Q2 2008+10.5%
Q4 2008+10.5%
Q2 2009+10.5%

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