Second-quarter earnings season is in full effect and the
results have been pretty darn good.
Of course, the naysayers were a vocal bunch a few weeks ago,
saying that earnings would generally be weak, but that hasn't
been the case at all. Some misses in the large-cap space, yes,
but scads of small- and midcap names continue to deliver the
), a maker of industrial equipment, reported earnings before the
open Thursday. It's another example of a stock with strong
fundamentals and technicals with a consistent track record of
The company's product portfolio includes pumps, valves and
seals. It also provides aftermarket equipment services to the oil
and gas, chemical, power generation and water-management
Flowserve split its shares 3-for-1 in late June, which cut its
quarterly dividend from 42 cents down to 14 cents, giving it an
annual yield of 1%.
Early Wednesday, the company topped earnings and sales
expectations. Profit and sales growth accelerated from the first
quarter, with earnings up 24% from a year ago to 84 cents a
share. Sales rose 5% to $1.24 billion. Earnings benefited from
continued growth in bookings and improving margins.
Sales at Flowserve's Engineered Product Division rose 7% to
$625 million thanks to increased equipment sales in North
America, Europe and Asia Pacific. Sales at its Flow Control
Division rose 2% to $384 million. Bookings rose nearly 9% to $447
million, helped by strong demand from the oil and gas and
Price and volume trends in Flowserve continue to look good.
The stock is carving a base-on-base pattern with a buy point of