NYSE$FLS

Flowserve Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported solid results driven by strong operational performance and aftermarket awards.

Flowserve Corporation reported strong Q4 2023 results, with adjusted EPS of $0.68 and revenue of $1.17 billion, a 12.1% increase year-over-year. Total bookings were $1.04 billion. The company initiated full year 2024 guidance, including revenue growth between 4%-6% and Adjusted EPS of $2.40 to $2.60.

  • Reported EPS was $0.47, and Adjusted EPS was $0.68.
  • Total bookings reached $1.04 billion, with aftermarket awards exceeding $550 million.
  • Sales increased to $1.17 billion, up 12.1% year-over-year.
  • The quarterly cash dividend increased by 5% to $0.21 per share, and the stock repurchase authorization was replenished to $300 million.

Headline financials

Total Revenue

$1.17B

Previous: $1.04B+12.1%
EPS (adj)

$0.68

Previous: $0.63+7.9%
Total Bookings

$1.04B

Previous: $1.11B-6.3%
Operating Margin

9.4%

Previous: 10.1%-6.9%
Capital Expenditures

-$19.8M

No prior period
Net Income

$62.6M

Previous: $121M-48.4%
Operating Income

$109M

Previous: $105M+4.0%
Gross Profit

$340M

Previous: $295M+15.0%
Stock-Based Comp

$5.68M

Previous: $1.77M+220.4%

Revenue & EPS history

Flowserve · Revenue · Quarterly

$1.17B

Q4 2023+12.1%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Flowserve · $1.09B total across 2 segments · Q3 2023

  • Aftermarket Bookings
    $566M+22.7%
  • Original Equipment Bookings
    $529M+28.4%

Forward guidance

Flowserve initiated full year 2024 guidance, including revenue growth between 4%-6% and Reported and Adjusted EPS of $2.25 to $2.45 and $2.40 to $2.60, respectively.

Tailwinds

  • Revenue Growth Up 4.0% to 6.0%
  • Reported Earnings Per Share $2.25 to $2.45
  • Adjusted Earnings Per Share $2.40 to $2.60
  • Intend to increase the conversion percentage of strong $2.7 billion backlog
  • Expand operating margins through improved operational excellence and enhanced product management.

Headwinds

  • Net Interest Expense $60 to $65 million
  • Adjusted Tax Rate ~20%
  • Capital Expenditures $75 to $85 million
  • Excludes realignment charges of approximately $30 million
  • Potential impact of below-the-line foreign currency effects and certain other discrete items

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 2023

Historical avgQ4 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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