Flowserve Set to Report Q4 Earnings: Is a Beat in Store?

Core Viewpoint - Flowserve Corporation (FLS) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimates at $1.2 billion, reflecting a 3.9% increase year-over-year [1] Revenue and Earnings Estimates - The consensus estimate for earnings is 77 cents per share, which has risen by 4.1% in the last 30 days and indicates a 13.2% increase from the previous year [2] - FLS has a history of surpassing earnings estimates three times and missing once in the last four quarters, with an average earnings surprise of 10.8% [2] Factors Influencing Performance - Strength in the chemical market, particularly from a greenfield petrochemical project in Saudi Arabia, is anticipated to positively impact results [4] - Investments in specialty chemicals in the U.S. and a modest improvement in global chemical demand are also expected to contribute to revenue growth [4] - Solid booking levels in the power generation market, driven by data center capacity growth and increased AI activity, are likely to support performance [5] Segment Performance - The Pumps Division is projected to perform well, with revenues expected to rise by 2.3% year-over-year to$ 851 million [6] - The Flow Control Division is anticipated to see a 5.2% increase in revenues to $351 million, aided by original equipment sales growth across various regions [7] Strategic Developments - The acquisition of MOGAS Industries in October 2024 is expected to enhance Flowserve's valve and automation product portfolio, boosting its exposure in mining and mineral extraction [8] Cost and Margin Considerations - Rising costs related to higher input prices and restructuring actions may negatively impact margins [9] - Foreign currency headwinds, due to the company's extensive international operations, are also likely to affect profitability [9] Earnings Prediction - Flowserve is predicted to beat earnings estimates, supported by a positive Earnings ESP of +2.60% and a Zacks Rank of 3 [10][11]