Flowserve Plagued By Weak Revenues, Turnaround Unlikely
Zacks Investment Research | Aug 16, 2017 10:12PM ET
Flowserve Corp. (NYSE:FLS) has been facing numerous headwinds in recent times, as evidenced by its dismal second-quarter 2017 results. Precipitous top-line decline, owing to macroeconomic volatility as well as foreign currency headwinds dragged profits for the company.
The figures were hurt by sluggish progress of the Industrial Product Division turnaround, customer delays in product pick-up and significantly high tax rate. In fact, the company’s adjusted earnings missed the Zacks Consensus Estimate by a whopping 50%. Flowserve also gave a disappointing guidance for 2017.
Investors are abandoning the stock in droves, in light of the miserable guidance and the all-pervasive weakness. The stock has declined 14.5% in the past month, much worse than the Zacks Investment Research
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