The Flowserve Corporation (NYSE:FLS) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in Flowserve Corporation (NYSE:FLS) had a good week, as its shares rose 3.5% to close at US$46.16 following the release of its first-quarter results. It was a workmanlike result, with revenues of US$1.1b coming in 3.1% ahead of expectations, and statutory earnings per share of US$0.56, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Flowserve. Read for free now.

Taking into account the latest results, the consensus forecast from Flowserve's eleven analysts is for revenues of US$4.81b in 2025. This reflects an okay 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 38% to US$2.99. In the lead-up to this report, the analysts had been modelling revenues of US$4.79b and earnings per share (EPS) of US$2.98 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Flowserve

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$63.20. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Flowserve at US$80.00 per share, while the most bearish prices it at US$53.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Flowserve's growth to accelerate, with the forecast 5.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Flowserve is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$63.20, with the latest estimates not enough to have an impact on their price targets.

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

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Flowserve , and understanding it should be part of your investment process.

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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.