Flowserve Lowers FY Outlook, Shares Slip 6%

Shares of Flowserve Corporation (FLS) slipped nearly 6% in extended trading session on Wednesday after the company lowered its outlook for the full year hurt by supply chain, logistics and labor issues.

Looking forward, the company now expects adjusted earnings of $1.40 to $1.45 per share and revenues to slip 3.5% to $4.5%. Previously, the company expected adjusted earnings of $1.45 to $1.65 per share and revenues to drop 2.0% to 4.0%.

Analysts polled by Thomson Reuters currently estimate earnings of $1.58 to $3.64 billion for the full year.

Rowe concluded, "Flowserve's third quarter results reflected substantial global supply chain, logistics, and labor availability issues which deferred approximately $60 million of revenue and $20 million of gross profit out of the quarter. The global nature of our business and our operations network amplified the impact of these disruptions. We strongly believe in our ability to work through these challenges to restore a more normal backlog conversion rate in the coming quarters."

FLS closed Wednesday's trading at $36.02, down $1.02 or 2.75%, on the NYSE. The stock further slipped $2.06 or 5.72% in the after-hours trading.

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