Flowserve Corporation FLS is likely to witness bottom and top-line growth when it reports fourth-quarter 2024 results on Feb. 18, after market close. The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, indicating growth of 3.9% from the prior-year quarter’s figure.

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The consensus mark for earnings is pinned at 77 cents per share, which has increased 4.1% in the past 30 days. The figure indicates a jump of 13.2% from the prior-year figure. FLS surpassed estimates thrice and missed once in the trailing four quarters, delivering an average earnings surprise of 10.8%. The company’s bottom line fell short of the Zacks Consensus Estimate by 7.5% in the last reported quarter.

Let’s see how things have shaped up for Flowserve prior to the announcement.

Factors Likely to Have Shaped FLS’ Quarterly Performance

Strength in the chemical market, led by the greenfield petrochemical project in Saudi Arabia, is expected to drive the company’s results in the fourth quarter. Significant investments in specialty chemicals in the United States and modest improvement in overall global chemical demand are also likely to have augmented its top line.

Solid booking levels in the power generation market, supported by the growth in data center capacity and increasing Artificial Intelligence activity, are likely to have been favorable. For 2024, Flowserve expects total revenues to increase in the range of 4-6% from the year-ago level.

The company’s Pumps Division segment is anticipated to have performed well in the fourth quarter, driven by solid momentum in the aftermarket and original equipment businesses in North America, Europe Middle East and Latin America. We expect the Pumps Division segment’s revenues to increase 2.3% from the year-ago quarter to $851 million.

An increase in original equipment sales in the Middle East, North America, Asia Pacific and Europe regions is expected to have augmented the Flow Control Division segment’s performance. We anticipate the segment’s fourth-quarter revenues to increase 5.2% year over year to $351 million.

The acquisition of MOGAS Industries (in October 2024), which enhanced Flowserve’s valve and automation product portfolio and significantly boosted its direct mining and mineral extraction exposure, is also expected to augment its results.

However, escalating costs and expenses, related to higher input costs, and restructuring-related actions are likely to have affected FLS’ margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.

Earnings Whisper

Our proven model predicts an earnings beat for Flowserve 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: Flowserve has an Earnings ESP of +2.60% as the Most Accurate Estimate is pegged at 79 cents per share, 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 presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Some 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.

Parker-Hannifin Corporation PH reported earnings of $6.53 per share in the second quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $6.22. This compares with earnings of $6.15 per share a year ago.

PH reported revenues of $4.74 billion for the quarter ended December 2024, missing the consensus estimate by 1.2%. This compares with year-ago revenues of $4.82 billion. The company topped the consensus estimate for revenues once 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 driven by higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.

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