Flowserve (NYSE: FLS) reported Q3 EPS of $0.49, $0.06 better than the analyst estimate of $0.43. Revenue for the quarter came in at $953 million versus the consensus estimate of $925.33 million.

• Reported Earnings Per Share (EPS) of $0.21 and Adjusted EPS[1] of $0.49
  • Reported EPS includes pre-tax adjusted items of approximately $47 million, primarily related to realignment and transformation expenses, a loss on previously announced divestitures and below-the-line foreign exchange impacts
  • Adjusted EPS increased 32.4%, and 19.5% on a sequential basis
• Sales were $953 million, up 7.8%, or 8.8% on a constant currency basis and included approximately 1% negative impact related to divested businesses
  • Aftermarket sales were $457 million, up 3.9%, or 5.0% on a constant currency basis
  • Original equipment sales were $496 million, up 11.8%, or 12.5% constant currency

“We delivered solid results in the third quarter, including our second consecutive quarter with bookings over $1 billion. With a book-to-bill of 1.06, we increased sequential backlog and grew year-over-year revenues by 7.8%, while also delivering annual and sequential improvement in our adjusted profit margins,” said Scott Rowe, Flowserve’s president and chief executive officer.

“Our Flowserve 2.0 transformation strategy is fundamentally changing the way we think, act and operate across our organization,” Rowe continued. “While we’re still early in the company’s transformational journey, we expect that our continued progress on these growth and operational initiatives will further position Flowserve to more fully capitalize on the expected improvement in our core energy markets.”

“Based on our solid performance in the first three quarters of 2018 and our confidence in delivering on our fourth quarter commitments, Flowserve today revised its full year guidance, including raising our Adjusted EPS[3] target range to $1.65 to $1.75 from $1.50 to $1.70,” added Lee Eckert, Flowserve’s senior vice president and chief financial officer.

Rowe concluded, “As we look ahead to 2019, we are building operating momentum to better capture the growth and value-creation potential inherent in our business. We expect to continue to simplify our business model, improve our productivity, lower our cost position and deliver enhanced long-term value for our customers, employees and shareholders.”

GUIDANCE:

Flowserve sees FY2018 EPS of $1.65-$1.75, versus the consensus of $1.70.

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