DALLAS - Flowserve Corporation (NYSE: NYSE:FLS), a global provider of flow control products and services, has declared a quarterly cash dividend of $0.21 per share on its outstanding common stock. The dividend is slated for payment on October 11, 2024, to shareholders on record as of September 27, 2024.
The announcement indicates the company's intention to maintain a regular quarterly dividend payout to its shareholders. However, Flowserve's Board of Directors reserves the right to determine the feasibility and amount of any future dividends on a per-quarter basis.
Flowserve operates in over 50 countries and is recognized for its extensive range of products, including engineered and industrial pumps, seals, and valves. These offerings are complemented by a suite of flow management services. More details about the company's operations and products can be found on its website.
The press release also contains forward-looking statements which are subject to various risks and uncertainties that could cause actual outcomes to differ from those projected. These include global economic conditions, industry-specific challenges, and operational risks, among others.
The company's forward-looking statements are based on current expectations and are not guarantees of future performance. Flowserve has highlighted that it does not undertake any obligation to update these statements, which are made as of the date of the press release.
This dividend announcement is consistent with Flowserve's historical practice of providing shareholder returns and reflects its current financial strategy. As with all corporate financial decisions, the declaration of dividends is influenced by the company's performance, market conditions, and capital needs.
Investors and shareholders are reminded that the information provided is based on a press release statement from Flowserve Corporation.
In other recent news, Flowserve Corporation has entered into an agreement to acquire MOGAS Industries, a Houston-based manufacturer of severe service valves, for $290 million, with a potential additional $15 million earnout. The transaction is expected to close in the fourth quarter of 2024. The acquisition is anticipated to double Flowserve's exposure to the direct mining and mineral extraction sectors, and is projected to be accretive to Flowserve’s adjusted Earnings Per Share in the first full year post-closing.
Also, Flowserve has demonstrated remarkable financial growth in the second quarter, with earnings per share increasing by over 40% and a revenue increase of over 7%. Notably, the company's bookings grew by 12%, amounting to $1.25 billion, and the backlog expanded to $2.7 billion. Analyst firms TD Cowen, Baird, and Mizuho have all updated their price targets for Flowserve, reflecting their optimism about the company's ongoing transformation and future prospects.
Furthermore, Flowserve's robust second-quarter performance was acknowledged by Mizuho, which maintained its Outperform rating on Flowserve and raised its price target from $53 to $58. The firm also revised its estimated earnings per share for Flowserve upwards for 2024 and 2025. These recent developments indicate a positive trajectory for Flowserve Corporation.
InvestingPro Insights
Flowserve Corporation (NYSE: FLS) has recently announced its commitment to continue rewarding shareholders with a quarterly cash dividend, which aligns with its historical practice of maintaining a steady dividend payout. In light of this announcement, a look at the company's financial metrics and analyst insights from InvestingPro can provide a clearer picture of its performance and potential.
InvestingPro Data shows that Flowserve has a market capitalization of $6.22 billion and is trading at a P/E ratio of 24.4. The company's revenue over the last twelve months as of Q2 2024 stands at $4.5 billion, with a notable revenue growth of 13.39% during the same period. These figures reflect a robust financial standing and suggest that the company's operations continue to expand.
An InvestingPro Tip highlights that net income is expected to grow this year, which may reassure investors about the company's ability to sustain dividend payments. Additionally, Flowserve has maintained dividend payments for 18 consecutive years, demonstrating a track record of reliability for income-focused shareholders.
On the other hand, seven analysts have revised their earnings expectations downwards for the upcoming period, which could indicate potential challenges ahead. Despite this, the company's liquid assets exceed its short-term obligations, and it operates with a moderate level of debt, suggesting a stable financial position for managing any near-term economic uncertainties.
For investors seeking further insights and analysis on Flowserve Corporation, there are additional InvestingPro Tips available at https://www.investing.com/pro/FLS. These tips can provide deeper insights into the company's valuation, financial health, and market position.
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