DALLAS - Flowserve Corporation (NYSE: NYSE:FLS), a prominent provider of flow control products and services, has reported a robust fourth quarter, surpassing analyst expectations with an adjusted EPS of $0.68, which is $0.08 higher than the estimated $0.60.
The company's revenue also exceeded forecasts, reaching $1.17 billion against a consensus estimate of $1.14 billion. This positive financial performance sent Flowserve's shares up by 4%, indicating a strong market response to the earnings release.
The company's reported EPS for the fourth quarter stood at $0.47, while the adjusted EPS reached $0.68, compared to the previous year's $0.92 and $0.63, respectively. The adjusted EPS excludes after-tax adjusted expenses of $27.6 million, primarily from realignment charges and below-the-line foreign exchange. Flowserve's bookings saw a slight decline, with total bookings at $1.04 billion, a 5.7% decrease from the previous year. However, aftermarket bookings showed resilience, with a slight increase of 0.5%.
Sales for the quarter were notably higher, with a 12.1% increase compared to the same period last year. The company experienced growth in both original equipment and aftermarket sales, which were up by 15.3% and 9.3%, respectively. The reported gross and operating margins stood at 29.1% and 9.4%, with adjusted margins at 29.8% and 10.5%.
Looking ahead, Flowserve has initiated its full-year 2024 guidance, anticipating revenue growth between 4% and 6%. The company's projected reported and adjusted EPS range from $2.25 to $2.45 and $2.40 to $2.60, respectively. This guidance places the midpoint of adjusted EPS at $2.50, slightly below the analyst consensus of $2.53.
Scott Rowe, Flowserve's President and CEO attributed the strong performance to the organizational design and operational discipline implemented last year. Rowe is confident in the company's positioning for 2024, focusing on converting the strong $2.7 billion backlog, delivering growth, and expanding operating margins.
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