Why Flowserve Corp. Stock Is Circling the Drain

Shares of Flowserve (NYSE: FLS) stock are down 10.3% as of 3:30 p.m. EDT.

Flowserve, which both manufactures and distributes industrial flow-management equipment, reported its fiscal second-quarter 2017 earnings this morning. The company reported $0.32 per share in profits -- which was bad enough, because that was 44% below last year's $0.57 per share. What made it worse was that Flowserve said its earnings were inflated by $0.10 in one-time benefits and that, adjusted to back out those benefits, earnings would have been only $0.22 per share. Wall Street had been expecting adjusted earnings of $0.44 -- twice what Flowserve actually produced.

Sales for the quarter, meanwhile, came in at only $877.1 million, far below consensus expectations of $926.2 million, and down 15% year over year.

Source: Fool.com