Flowserve (NYSE:FLS) Shares Gap Down on Disappointing Earnings

Shares of Flowserve Co. (NYSE:FLS - Get Free Report) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $63.10, but opened at $57.68. Flowserve shares last traded at $58.31, with a volume of 488,665 shares changing hands.

The industrial products company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.77 by ($0.07). The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.21 billion. Flowserve had a net margin of 6.20% and a return on equity of 17.08%.

Flowserve Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 11th. Investors of record on Friday, March 28th will be paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, March 28th. This represents a $0.84 dividend on an annualized basis and a yield of 1.52%. Flowserve's payout ratio is 39.25%.

Wall Street Analysts Forecast Growth

FLS has been the topic of several research reports. Stifel Nicolaus boosted their price objective on shares of Flowserve from $75.00 to $77.00 and gave the company a "buy" rating in a research report on Thursday. StockNews.com downgraded shares of Flowserve from a "buy" rating to a "hold" rating in a report on Thursday. Robert W. Baird raised their price objective on Flowserve from $69.00 to $71.00 and gave the company a "neutral" rating in a research report on Thursday. The Goldman Sachs Group upgraded shares of Flowserve from a "sell" rating to a "neutral" rating and upped their price target for the company from $55.00 to $69.00 in a research note on Thursday, December 12th. Finally, TD Cowen increased their target price on Flowserve from $60.00 to $75.00 and gave the stock a "buy" rating in a research note on Thursday, January 16th. Three research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $68.60.

Institutional Investors Weigh In On Flowserve

A number of large investors have recently modified their holdings of the business. FIL Ltd increased its position in Flowserve by 71.7% during the 4th quarter. FIL Ltd now owns 5,255,059 shares of the industrial products company's stock worth $302,271,000 after purchasing an additional 2,193,904 shares in the last quarter. Norges Bank acquired a new position in shares of Flowserve during the fourth quarter worth $94,629,000. Driehaus Capital Management LLC lifted its stake in shares of Flowserve by 307.1% in the 4th quarter. Driehaus Capital Management LLC now owns 1,888,917 shares of the industrial products company's stock valued at $108,651,000 after acquiring an additional 1,424,948 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Flowserve by 52.7% during the 4th quarter. Invesco Ltd. now owns 2,068,025 shares of the industrial products company's stock valued at $118,953,000 after acquiring an additional 714,063 shares in the last quarter. Finally, Point72 Asset Management L.P. grew its position in Flowserve by 197.6% during the 3rd quarter. Point72 Asset Management L.P. now owns 913,268 shares of the industrial products company's stock worth $47,207,000 after acquiring an additional 606,416 shares during the last quarter. Institutional investors and hedge funds own 93.93% of the company's stock.

Flowserve Trading Down 3.6 %

The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.39 and a current ratio of 1.97. The firm has a market cap of $7.28 billion, a price-to-earnings ratio of 25.88, a PEG ratio of 1.35 and a beta of 1.42. The business has a fifty day simple moving average of $60.57 and a 200-day simple moving average of $55.78.

Flowserve Company Profile

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets.