Flowserve (NYSE: FLS) reported Q1 EPS of $0.25, $0.06 better than the analyst estimate of $0.19. Revenue for the quarter came in at $864 million versus the consensus estimate of $813.8 million.

First Quarter 2017 Highlights (all comparisons to 2016 first quarter, unless otherwise noted)

• Reported Earnings Per Share (EPS) of $0.11 includes $0.14 per share of adjusted items
• Adjusted EPS[1] was $0.25 excluding the adjusted items
• Both Reported and Adjusted results include approximately $10 million of accelerated non-cash incentive recognition and executive transition expenses
• Sales were $864 million, down 7.8% on a constant currency basis
• Aftermarket sales were $408 million, down 3.0% on a constant currency basis
• Total bookings were $958 million, up 5.3% on a constant currency basis
• Aftermarket bookings were $457 million, or 48% of total bookings, up 3.0% on a constant currency basis
• Original equipment booking were $501 million, up 7.4% on a constant currency basis
• Book-to-bill of 1.11, highest since the second quarter of 2014
• Reported gross and operating margins of 30.6% and 5.4%
• Adjusted gross and operating margins[2] were 31.5% and 7.0%, down 180 basis points and 240 basis points, respectively
• Achieved approximately $28 million of incremental cost savings from the realignment program during the 2017 first quarter
• Backlog at March 31, 2017 was $2.0 billion, up 5.6% versus 2016 year-end

GUIDANCE:

Flowserve sees FY2017 EPS of $1.55-$1.85, versus the consensus of $1.75.

Full Year 2017 Guidance

Flowserve reaffirmed its 2017 guidance, including Reported and Adjusted[3] EPS target ranges of $0.72 to $1.02 and $1.55 to $1.85, respectively. Both EPS target ranges are based on an expected 6 to 11 percent decline in revenues year-over-year, including an above-the-line foreign currency headwind [4] of approximately 10 cents per share. Adjusted EPS guidance excludes expected realignment expense, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items, such as the recently announced expected sale of our Gestra business. The transaction is expected to close in May 2017 and once complete, is anticipated to have a modest dilutive impact to full year 2017 Adjusted earnings while improving Reported 2017 earnings.

For earnings history and earnings-related data on Flowserve (FLS) click here.