NYSE$FLS

Flowserve Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported fourth quarter EPS and adjusted EPS, generated strong free cash flow, and limited decremental adjusted margins through transformation efforts.

Flowserve Corporation reported a decrease in sales and bookings for Q4 2020 compared to the previous year, but highlighted strong free cash flow generation and progress on transformation initiatives. The company's Flowserve 2.0 transformation efforts helped limit the decline in adjusted operating margins.

  • Reported EPS was $0.43 and adjusted EPS was $0.53.
  • Total bookings decreased by 21.6% to $825.1 million.
  • Sales decreased by 7.8% to $985.3 million.
  • Generated strong free cash flow of $185 million.

Headline financials

Total Revenue

$985M

Previous: $1.07B-7.7%
EPS (adj)

$0.53

Previous: $0.66-19.7%
Total Bookings

$825M

Previous: $1.05B-21.4%
Total Backlog

$1.9B

Previous: $2.16B-12.0%
Operating Margin

9.7%

Previous: 10.0%-3.0%
Free Cash Flow

$185M

No prior period
Net Income

$56.9M

Previous: $69.8M-18.5%
Operating Income

$95.3M

Previous: $107M-11.1%
Gross Profit

$295M

Previous: $350M-15.5%
Cash & Equivalents

$1.1B

Previous: $671M+63.2%
Total Assets

$5.31B

Previous: $4.92B+8.0%
Stock-Based Comp

$3.15M

Previous: $1.38M+128.9%

Revenue & EPS history

Flowserve · Revenue · Quarterly

$985M

Q4 2020-7.7%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Flowserve · $985M total across 2 segments · Q4 2020

  • Original Equipment Bookings
    $507M-7.2%
  • Aftermarket Bookings
    $478M-8.4%

Forward guidance

Flowserve anticipates a larger impact from the COVID-driven downturn in 2021 due to lower starting backlog and ongoing pandemic management, but expresses increasing optimism as vaccines progress and end markets potentially grow.

Tailwinds

  • Progress of the vaccines
  • Increased global mobility
  • Stability in commodity prices
  • Pent-up demand for parts and services
  • Return to bookings growth this calendar year

Headwinds

  • COVID-driven downturn impacting financial performance
  • Lower starting backlog
  • Ongoing management of the pandemic across global footprint
  • Modest end-market improvement reflected in guidance
  • Inability to accurately predict the timing of the inflection

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 Q4 2020

Historical avgQ4 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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