Flow control equipment manufacturer Flowserve (NYSE:FLS) will be reporting results tomorrow after market hours. Here’s what to look for.

Flowserve beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $1.16 billion, up 7.1% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

Is Flowserve a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Flowserve’s revenue to grow 2.6% year on year to $1.12 billion, slowing from the 25.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.67 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 10 analysts). Flowserve has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.

Looking at Flowserve’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Graco’s revenues decreased 3.8% year on year, missing analysts’ expectations by 3.4%, and Snap-on reported flat revenue, topping estimates by 7.8%. Graco’s stock price was unchanged after the results, while Snap-on was up 9.4%.

Read our full analysis of Graco’s results here and Snap-on’s results here.

Investors in the industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Flowserve is up 1.9% during the same time and is heading into earnings with an average analyst price target of $59.70 (compared to the current share price of $52.66).

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