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Mar 31, 2022

Flowserve Q1 2022 Earnings Report

Flowserve's first quarter results were announced, with strong bookings but impacted by supply chain issues and Russia exit.

Key Takeaways

Flowserve Corporation reported a decrease in sales but an increase in total bookings. The results were impacted by supply chain and logistics issues and the decision to exit Russian operations, leading to a reported loss per share of $0.12. Adjusted EPS was $0.07.

Total bookings increased by 14.9% year-over-year to $1.09 billion.

Backlog reached $2.23 billion, up 18.4% year-over-year.

The company decided to exit its operations in Russia due to the invasion of Ukraine.

Revised 2022 full year targets to reflect expected impacts of Russian exit, current supply chain and logistics constraints.

Total Revenue
$821M
Previous year: $857M
-4.2%
EPS
$0.07
Previous year: $0.28
-75.0%
Total Bookings
$1.09B
Previous year: $945M
+15.3%
Total Backlog
$2.23B
Previous year: $1.9B
+17.4%
Operating Margin
0.9%
Previous year: 6.5%
-86.2%
Gross Profit
$210M
Previous year: $251M
-16.4%
Cash and Equivalents
$576M
Previous year: $659M
-12.7%
Total Assets
$4.7B
Previous year: $4.81B
-2.2%

Flowserve

Flowserve

Forward Guidance

Flowserve updated its Reported and Adjusted EPS guidance for 2022, as well as certain other financial metrics, as shown in the table below:

Positive Outlook

  • Revenue Growth Up 5.0% to 7.0%
  • Adjusted Tax Rate 20% - 22%

Challenges Ahead

  • Reported Earnings Per Share $1.25 - $1.45
  • Adjusted Earnings Per Share $1.50 - $1.70
  • Net Interest Expense $45 - $50 million
  • Capital Expenditures $60 - $70 million