Flowserve Corp (FLS) Raises 2023 Financial Guidance Following Strong Q3 Performance
Flowserve Corp (NYSE:FLS) reported and adjusted earnings per share (EPS) of 35 cents and 50 cents, respectively.
The company delivered solid bookings of $1.07 billion, maintaining near-record backlog levels at $2.77 billion.
Flowserve Corp (NYSE:FLS) drove revenue growth of 25.4% and improved operating cash flow by over $240 million year-to-date.
The company raised its full-year Revenue and Adjusted EPS guidance range following strong year-to-date performance.
Flowserve Corp (NYSE:FLS), a leading provider of flow control products and services for the global infrastructure markets, announced its financial results for the third quarter ended September 30, 2023, on October 25, 2023. The company reported strong operational performance with reported and adjusted earnings per share (EPS) of 35 cents and 50 cents, respectively. Flowserve Corp (NYSE:FLS) also delivered solid bookings of $1.07 billion, maintaining near-record backlog levels at $2.77 billion.
Financial Highlights
Flowserve Corp (NYSE:FLS) reported a revenue growth of 25.4% and generated a 630 basis point improvement in adjusted operating margin compared to the prior year. The company also improved its operating cash flow by over $240 million year-to-date, with $81 million of operating cash flow generated in the 2023 third quarter.
Flowserve Corp (NYSE:FLS) raised its full-year Revenue and Adjusted EPS guidance range following strong year-to-date performance and expectations for the 2023 fourth quarter. The company's revised target range for revenue growth is up 18% to 19%, and the adjusted earnings per share is expected to be between $1.95 and $2.05.
Company's Performance and Outlook
Flowserve Corp (NYSE:FLS) reported earnings per share (EPS) of $0.35 and adjusted earnings per share (EPS) of $0.50, compared to $0.29 and $0.09, respectively, in the third quarter of 2022. The company's total bookings were $1.07 billion, down $155.8 million or 12.7%. On a constant currency basis, total bookings were down $175.4 million or 14.3%.
Flowserve Corp (NYSE:FLS) is well-positioned to capture accelerated growth from energy transition investments and decarbonization initiatives. The company expects both aftermarket and MRO opportunities to remain strong through 2024 and beyond. As a result of these combined dynamics, Flowserve Corp (NYSE:FLS) continues to believe it is in the early stages of a multi-year upcycle.
Important Financial Tables
The company's reported gross and operating margins were 29.0% and 6.4%, up 160 and 360 basis points, respectively. The adjusted gross and operating margins were 29.7% and 8.7%, up 230 and 630 basis points, respectively.
Flowserve Corp (NYSE:FLS) reported sales of $1.09 billion, up $221.8 million or 25.4%. On a constant currency basis, sales were up $200.7 million or 23.0%. The company's backlog was $2.77 billion, up $170.9 million or 6.6% compared to the 2022 third quarter.
CEO's Commentary
We delivered strong third quarter results, including significant revenue and earnings growth, while building on the operating momentum of the last year, said Scott Rowe, Flowserves President and Chief Executive Officer. Our new organizational model is driving speed, accountability, and cost efficiency throughout the company. The combination of our improved operating performance and our positive market outlook gives us the confidence to increase our full year revenue and adjusted EPS guidance range for the third time this year.
Explore the complete 8-K earnings release (here) from Flowserve Corp for further details.
This article first appeared on GuruFocus.
