Flowserve Corporation (NYSE: NYSE:FLS), a player in the flow control products and services market, has reported a robust second quarter, surpassing analyst expectations and raising its full-year adjusted earnings guidance for 2024.
The company announced a second-quarter adjusted EPS of $0.73, which is $0.10 higher than the analyst estimate of $0.63. Revenue for the quarter was also strong, coming in at $1.16 billion, exceeding the consensus estimate of $1.13 billion.
Flowserve's second-quarter performance represents a significant improvement from the same period last year, with adjusted EPS increasing by 40% and reported EPS by 41%. The company's operational excellence and strategic organizational changes have been credited for the impressive results, which included a 7.1% increase in sales compared to the second quarter of 2023.
The company's bookings saw a substantial rise to $1.25 billion, marking the highest quarterly level since 2014, driven by record aftermarket activity of more than $610 million. Adjusted gross and operating margins also saw a notable increase, up by 200 and 210 basis points respectively, compared to the previous year.
Scott Rowe, Flowserve’s President and CEO, attributed the strong quarter to the company's momentum built over several quarters, citing significant improvements in bookings, revenue, and margins. Rowe expressed confidence in Flowserve's positioning to meet long-term targets, bolstered by accelerating operational performance and focused product management.
In light of the strong financial and operating performance year-to-date, combined with a positive outlook for the remainder of the year, Flowserve has raised its full-year adjusted EPS guidance for 2024 to a range of $2.60 to $2.75. This updated guidance reflects the company's continued commitment to growth and long-term value creation for stakeholders.
Flowserve's revised full-year guidance for 2024 reaffirms its revenue growth target of 4.0% to 6.0% and maintains most other financial targets. The adjusted tax rate is now expected to be around 21%, with capital expenditures reaffirmed at $75 to $85 million.
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