Flowserve (NYSE:FLS) Shares Climb 8% After Better-Than-Expected Earnings

Flowserve Corporation (NYSE:FLS) shares shot up 8% on Thursday following a stronger than expected earnings report. The company traded as high as $78.46 and last traded at $77.59. 341,579 shares were traded during trading, a decline of 82% from the average daily volume of 1,862,682 shares. The stock had previously closed at $71.81.

The industrial products company reported $1.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.98 by $0.09. Flowserve had a return on equity of 21.42% and a net margin of 8.01%. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.24 billion. During the same period in the prior year, the business earned $0.90 EPS. The firm’s quarterly revenue was up 5.4% on a year-over-year basis.

Flowserve Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 25th were paid a dividend of $0.22 per share. The ex-dividend date of this dividend was Friday, September 25th. This represents a $0.88 dividend on an annualized basis and a yield of 1.1%. Flowserve’s payout ratio is 30.88%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on FLS shares. The Goldman Sachs Group set a $82.00 target price on Flowserve in a research note on Thursday, July 30th. Robert W. Baird set a $93.00 price objective on Flowserve in a research report on Friday, July 31st. Stifel Nicolaus increased their price objective on shares of Flowserve from $92.00 to $94.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Royal Bank Of Canada cut their target price on Flowserve from $94.00 to $88.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 14th. Finally, Weiss Ratings upgraded Flowserve from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, October 21st. Seven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $85.40.

Institutional Investors Weigh In On Flowserve

A number of institutional investors and hedge funds have recently bought and sold shares of FLS. Sumitomo Mitsui Trust Group Inc. lifted its holdings in Flowserve by 31.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 60,072 shares of the industrial products company’s stock worth $4,392,000 after purchasing an additional 14,505 shares during the period. Vise Technologies Inc. bought a new stake in shares of Flowserve during the 3rd quarter worth about $269,000. MGO One Seven LLC acquired a new stake in shares of Flowserve in the 3rd quarter worth approximately $277,000. Partners Wealth Management LLC bought a new position in shares of Flowserve in the third quarter valued at approximately $229,000. Finally, D.A. Davidson & CO. increased its stake in shares of Flowserve by 13.1% during the third quarter. D.A. Davidson & CO. now owns 46,813 shares of the industrial products company’s stock valued at $3,423,000 after acquiring an additional 5,416 shares during the period. Hedge funds and other institutional investors own 93.93% of the company’s stock.

Flowserve Stock Up 9.3%

The stock’s 50 day moving average is $74.25 and its 200 day moving average is $76.37. The company has a quick ratio of 1.58, a current ratio of 2.15 and a debt-to-equity ratio of 0.91. The firm has a market cap of $9.98 billion, a price-to-earnings ratio of 27.56, a price-to-earnings-growth ratio of 1.52 and a beta of 1.23.

Flowserve Company Profile

Flowserve Corporation is a global manufacturer of flow-control equipment and related services. The company designs, produces and services pumps, valves, mechanical seals and associated systems used to move, control and protect fluids in industrial processes.

Its products and services support applications across the energy, chemical and petrochemical, water, pharmaceutical, mining, power and general industrial markets. Flowserve also provides aftermarket services, including equipment repair, maintenance, upgrades and replacement parts, helping customers improve the reliability and efficiency of their operations.

Headquartered in Irving, Texas, Flowserve serves customers through manufacturing, sales and service operations in North America, Europe, Asia and other international markets.