Flowserve Corporation FLS is slated to release fourth-quarter 2024 results on Feb. 18, after market close.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings has increased 4.1% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing the mark in one, the average beat being 10.8%.

The consensus estimate for revenues is pegged at $1.21 billion, indicating growth of 3.9% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at 77 cents per share, indicating a 13.2% increase from the year-ago quarter’s number.

Let’s see how things have shaped up for Flowserve this earnings season.

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Factors to Note Ahead of FLS’ Results

Flowserve’s Pump Division segment’s fourth-quarter 2024 performance is expected to have gained from strength in the aftermarket and original equipment businesses, driven by an increase in demand for products and services in North America, Europe, Middle East and Latin America. We anticipate the segment’s revenues to increase 2.3% year over year to $850.9 million.

Robust original equipment sales in the Middle East, North America, Asia Pacific and Europe regions are likely to support the results of the Flow Control Division segment in the fourth quarter. We anticipate the segment’s revenues to increase 5.2% year over year to $351.0 million.

Synergistic gains from the acquisitions made by the company are expected to have boosted revenues.  In July 2024, Flowserve acquired the intellectual property and in-process R&D related to cryogenic liquefied natural gas (LNG) submerged pump technology, systems and packaging from NexGen Cryogenic Solutions Inc. NexGen’s pump and cold energy recovery turbine technology for the liquefaction, shipping and regasification markets expanded the company’s LNG product portfolio and complemented its existing pumps, valves and mechanical seals offering.

In the fourth quarter, we expect the company’s total revenues to be $1.2 billion, indicating an increase of 3.2% year over year. Adjusted earnings are expected to be 73 cents per share, indicating a 6.3% increase from the year-ago quarter’s number.

However, the rising cost of sales due to raw material inflation is likely to have partially dented FLS’ bottom line.

The company’s international presence exposes it to the risk of adverse currency fluctuations, which are expected to have hurt its performance.

Earnings Whispers

Our proven model predicts an earnings beat for FLS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 

Earnings ESP: FLS has an Earnings ESP of +2.60% as the Most Accurate Estimate is pegged at 79 cents per share, which is higher than the Zacks Consensus Estimate of 77 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: FLS currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Companies

Tetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.

Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.

Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.

WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.

Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.

Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.

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