Flowserve Corp Receives a Hold from Oppenheimer


In a report released yesterday, Jim Giannakouros from Oppenheimer maintained a Hold rating on Flowserve Corp (NYSE: FLS). The company’s shares closed on Friday at $43.53.

Giannakouros commented:

“Shares sank 9% (vs. XLI +0.2%) after FLS reported an operationally in-line 1Q18 adj. EPS of $0.27 (above our $0.24E), with quarterly results, order/backlog trend (normal seasonality excl. ASC 606 revenue recognition adjustments), and operational progress (continued realignment, early stage “Flowserve 2.0″ efforts) supporting unchanged ’18 EPS guidance of $1.50-1.70. We view the stability/signs of growth in core energy markets (aided by oil prices >$70/bbl), management’s confidence in sequential bookings growth, and CEO Rowe’s intensive operational focus positively as we weigh risk/reward on shares. Offsets include weaker than anticipated AM bookings (-1% y/y, on what is supposed to be an FLS’ competitive advantage), lower FCD GM, still challenged past-due backlog, and working capital management.”

According to TipRanks.com, Giannakouros is a 4-star analyst with an average return of 6.2% and a 56.6% success rate. Giannakouros covers the Industrial Goods sector, focusing on stocks such as Lincoln Electric Holdings, Watts Water Technologies, and Carlisle Companies Inc.

Flowserve Corp has an analyst consensus of Hold, with a price target consensus of $47.75.

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Based on Flowserve Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $15.14 million. In comparison, last year the company had a net profit of $19.05 million.

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Flowserve Corp. engages in the manufacture and provision of aftermarket service for comprehensive flow control systems. It operates through the following segments: Engineered Product Division, Industrial Product Division, and Flow Control Division.

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