NYSE$FLS

Flowserve Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported EPS of $0.39 and adjusted EPS of $0.50, driven by solid backlog execution and the company is tracking ahead of plan on its $100 million cost reduction program.

Flowserve Corporation announced its financial results for the third quarter ended September 30, 2020, delivering a solid operating quarter amidst pandemic-related challenges, with reported EPS of $0.39 and adjusted EPS of $0.50. The company is increasingly optimistic about market stabilization and a return to growth in 2021, supported by the Flowserve 2.0 transformation progress.

  • Total bookings were $806.1 million, a decrease of 21.2% (or 21.6% on a constant currency basis).
  • Sales reached $924.3 million, down 7.2% (or 7.7% on a constant currency basis).
  • Reported gross and operating margins were 30.9% and 9.4%, respectively.
  • Adjusted gross and operating margins were 31.5% and 10.9%, respectively.

Headline financials

Total Revenue

$924M

Previous: $997M-7.2%
EPS (adj)

$0.50

Previous: $0.59-15.3%
Total Bookings

$806M

No prior period
Total Backlog

$2B

No prior period
Operating Margin

9.4%

No prior period
Free Cash Flow

$51M

Previous: $68.4M-25.5%
Net Income

$51M

Previous: $68.4M-25.5%
Operating Income

$87.3M

Previous: $110M-20.3%
Gross Profit

$285M

Previous: $334M-14.5%
Cash & Equivalents

$921M

Previous: $547M+68.3%
Total Assets

$5.17B

Previous: $4.76B+8.6%
Stock-Based Comp

$5.63M

Previous: $7.15M-21.3%

Revenue & EPS history

Flowserve · Revenue · Quarterly

$924M

Q3 2020-7.2%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Flowserve · $924M total across 2 segments · Q3 2020

  • Original Equipment Bookings
    $479M
  • Aftermarket Bookings
    $445M

Forward guidance

Flowserve expects the 2020 fourth quarter to largely follow the trend of highest performance for quarterly revenues, adjusted earnings and cash flow typically occurring in the fourth quarter of the year.

Tailwinds

  • Markets have stabilized
  • Expect a return to growth in 2021
  • World recovers from the COVID pandemic
  • Continued Flowserve 2.0 transformation progress
  • Well positioned to capture growth opportunities when investment returns

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 Q3 2020

Historical avgQ3 2020

+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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