Flowserve Corporation (NYSE:FLS) shares closed more than 7% lower on Wednesday following the company’s pre-announced Q3 EPS results, cutting 18c-22c/48% below the $0.42 Street estimate.

According to the analyst at RBC Capital, the two culprits driving the miss are company-specific, with 60% of the shortfall from bumps in its ERP implementation and 40% from higher corporate expense accruals.

Notably, demand at Flowserve remains resilient and the company disclosed that it expects to post Q3/22 orders totaling over $1 billion for the third consecutive quarter, partly driven by its new “3D” strategy: Diversify/Decarbonize/Digitize.

The analysts lowered their 2022/2023 EPS estimates by 20c/10c to $1.30/ $1.95 and their price target by $2 to $31.