Shareholders might have noticed that Flowserve Corporation (NYSE:FLS) filed its annual result this time last week. The early response was not positive, with shares down 8.4% to US$57.46 in the past week. Revenues of US$4.6b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.14, missing estimates by 7.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Flowserve

Taking into account the latest results, the current consensus from Flowserve's eleven analysts is for revenues of US$4.85b in 2025. This would reflect a modest 6.3% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 48% to US$3.19. In the lead-up to this report, the analysts had been modelling revenues of US$4.89b and earnings per share (EPS) of US$2.97 in 2025. So the consensus seems to have become somewhat more optimistic on Flowserve's earnings potential following these results.

There's been no major changes to the consensus price target of US$72.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Flowserve at US$80.00 per share, while the most bearish prices it at US$62.00. This is a very narrow spread of estimates, implying either that Flowserve is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Flowserve's past performance and to peers in the same industry. The analysts are definitely expecting Flowserve's growth to accelerate, with the forecast 6.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.8% 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 3.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Flowserve to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Flowserve following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Flowserve. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Flowserve going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Flowserve that we have uncovered.

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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.