Zacks Investment Research downgraded shares of Flowserve Corporation (NYSE:FLS) from a hold rating to a sell rating in a research note released on Monday, November 6th.
According to Zacks, “Flowserve’s third-quarter 2017 adjusted earnings beat the Zacks Consensus Estimates by 8.8%. However, the company posted broad-based top-line decline as revenues fell 6.6% year over year, due to sluggish progress of the Industrial Product Division turnaround and foreign currency headwinds. In addition, cautious spending by clients, loss of sales leverage and related under-absorption has been hurting the company’s profitability. Capital spending deferrals and reduced activity in its key markets are proving to be major concerns. Also, escalating realignment costs are likely to pressurize short-term margin performance. Its shares have underperformed the industry over the past six months. However, Flowserve’s leading position in the flow control industry, strong aftermarket business and geographical diversity are expected to offset some of these challenges. “
Several other equities research analysts have also commented on FLS. Jefferies Group LLC restated a buy rating and issued a $50.00 price objective on shares of Flowserve in a research note on Friday, July 14th. Cowen Inc restated a buy rating and set a $55.00 price objective on shares of Flowserve in a research report on Friday, July 28th. Stifel Nicolaus restated a buy rating and set a $45.00 price objective on shares of Flowserve in a research report on Sunday, September 3rd. Oppenheimer Holdings, Inc. reaffirmed a hold rating on shares of Flowserve in a report on Monday, July 31st. Finally, Boenning Scattergood reaffirmed a hold rating on shares of Flowserve in a report on Friday, July 28th. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating and six have given a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $44.27.
Flowserve (NYSE:FLS) last announced its quarterly earnings results on Wednesday, November 1st. The industrial products company reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.03. The company had revenue of $883.38 million for the quarter, compared to the consensus estimate of $871.20 million. Flowserve had a return on equity of 12.09% and a net margin of 4.58%. Flowserve’s revenue was down 6.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.52 EPS. analysts expect that Flowserve will post 1.38 earnings per share for the current year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. IFM Investors Pty Ltd purchased a new position in Flowserve in the third quarter worth $302,000. California Public Employees Retirement System lifted its stake in shares of Flowserve by 4.9% during the third quarter. California Public Employees Retirement System now owns 275,637 shares of the industrial products company’s stock worth $11,739,000 after buying an additional 12,874 shares during the period. Zions Bancorporation acquired a new stake in shares of Flowserve during the third quarter worth $117,000. Janus Henderson Group PLC lifted its stake in shares of Flowserve by 0.8% during the third quarter. Janus Henderson Group PLC now owns 587,871 shares of the industrial products company’s stock worth $25,038,000 after buying an additional 4,934 shares during the period. Finally, Permian Investment Partners LP acquired a new stake in shares of Flowserve during the third quarter worth $28,535,000. 99.39% of the stock is currently owned by institutional investors and hedge funds.
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Flowserve Corporation is a manufacturer and aftermarket service provider of flow control systems. The Company’s segments include Engineered Product Division, Industrial Product Division and Flow Control Division. Its geographic segments include North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
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