Flowserve Corporation (NYSE: FLS) shares fell sharply in after-hours trading on Tuesday, February 18th, following the company's fourth quarter 2024 earnings release. The stock plunged 6.47% in the after-hours session after missing analyst estimates on both earnings and revenue.

For the fourth quarter, Flowserve reported adjusted earnings of $0.70 per share, missing consensus estimates of $0.77 per share by 9.09%. The company's quarterly revenue of $1.18 billion also fell short of analyst expectations of $1.21 billion, representing a 2.29% miss. Compared to the same period last year, earnings per share grew 2.94% while revenue increased 1.29%.

Despite the fourth quarter miss, Flowserve achieved solid top-line growth and margin expansion for the full year 2024. The company reported full-year revenue of $4.56 billion, up 5.5% year-over-year, driven by strong bookings growth across its Flowserve Pumps and Flow Control divisions. Adjusted operating margins expanded 230 basis points to 11.8% as the company realized benefits from its 3D strategy and Flowserve Business System initiatives.

Looking ahead to 2025, Flowserve provided adjusted earnings per share guidance of $3.10 to $3.30, representing a 22% increase at the midpoint versus 2024. The company expects organic sales growth of 3% to 5% along with a 300 basis point tailwind from acquisitions, partially offset by a 100 basis point currency headwind.

In the earnings release, Flowserve President and CEO Scott Rowe stated, "We enter 2025 with strong momentum, which we expect to build on through enhanced operational execution and our 80-20 complexity reduction efforts. With these levers, we are well-positioned to continue creating long-term value for our customers, shareholders, and associates."