Flowserve Corporation Just Beat EPS By 113%: Here's What Analysts Think Will Happen Next

Shareholders will be ecstatic, with their stake up 28% over the past week following Flowserve Corporation's (NYSE:FLS) latest third-quarter results. Revenues of US$1.2b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of US$1.67 an impressive 113% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the eleven analysts covering Flowserve are now predicting revenues of US$4.98b in 2026. If met, this would reflect an okay 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.2% to US$3.75. Before this earnings report, the analysts had been forecasting revenues of US$5.00b and earnings per share (EPS) of US$3.70 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Flowserve

The consensus price target rose 8.0% to US$71.80despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Flowserve's earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Flowserve analyst has a price target of US$84.00 per share, while the most pessimistic values it at US$60.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Flowserve's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. Compare this to the 191 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. So it's pretty clear that, while Flowserve's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Flowserve going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Flowserve you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.