SPX Flow’s preliminary Q3 miss also bad news for Flowserve, Colfax

|About: SPX FLOW, Inc. (FLOW)|By:, SA News Editor

SPX Flow’s (FLOW -4.1%) Q3 preliminary earnings miss is “clearly unfavorable” and points to the most downward risk for estimates for peers Flowserve (FLS -0.2%) and Colfax (CFX -0.2%), according to analysts at William Blair.

FLOW yesterday issued downside Q3 guidance, seeing EPS of $0.30-$0.35 vs. $0.47 analyst consensus estimate, on revenues of $467M vs. $497M consensus; prior guidance was for EPS of $0.40-$0.50 and revenue of $490M-$510M.

Q3 orders and backlog declined sequentially by 6% and 2%, respectively, primarily reflecting lower levels of original equipment orders in energy markets and lower orders for systems in food and beverage markets, which FLOW says has caused it to reassess Q4 expectations.