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Fluor Secures Texas Contract for U.S. 287 Expansion Project
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Premium engineering and construction firm, Fluor Corporation (FLR - Free Report) , recently announced that it has clinched a “bid-build contract” from Texas Department of Transportation (“TxDOT”), for the U.S. 287 Expansion Project in Ellis County. The company will book the unrevealed contract value in first-quarter 2017.
Fluor believes that this contract win will help it go beyond the usual design-build and private public partnerships as well as fortify its position in the bid-build market. The company has a long history of providing services for infrastructure related projects in Texas for over a decade. Currently, it is working on TxDOT’s Horseshoe Project in Dallas and Central Texas Regional Mobility Authority’s 183 South Project in Austin.
At present, the Texan government is working on transforming Ellis County into a commercial and industrial hub, and that includes the expansion of U.S. 287, a main arterial route in Ennis. The project of widening the U.S. 287 by approximately 4.5 miles is scheduled to commence from spring of 2017 and has an expected completion time of roughly two years.
Fluor has a solid track record of receiving awards. Management remains optimistic that continuation of this trend will drive growth for the company. Fluor’s consolidated backlog at the end of the year was $45.0 billion, up from $44.7 billion in the prior-year quarter. The company remains hopeful that President Trump’s $1 trillion infrastructure plan will unlock multiple lucrative opportunities for the economy.
Fluor has been a long-standing partner of the U.S. government, assisting it in critical projects. The broad-based bipartisan support for infrastructure investment in the U.S. can substantially accelerate Fluor’s growth. Trump’s pledge to cut taxes and regulatory red tape will likely drive the long-term performance of the company.
Despite an impressive market share and contract wins, Fluor’s shares returned 2.2% in the past six months, far lower than the Zacks categorized Engineering R/D Services industry's average positive return of 11.5%. Volatility in commodity prices and the cyclical nature of the company’s commodity-based business lines proved to be major drags on its financial performance.
Furthermore, lingering softness in the mining and metals business continues to dampen lucrative commercial opportunities. Also, Fluor’s earnings estimates moved south over the past couple of months. The Zacks Rank #3 (Hold) company has seen two downward estimate revisions compared to none upward, over the past 60 days. This led the Zacks Consensus Estimate for 2017 to edge down from $2.90 to $2.88, indicating bearish analyst sentiment for the stock.
EnerSys has surpassed earnings estimates each time in the past four quarters, with an average positive beat of 4.4%.
Middleby Corporation beat earnings in each of the trailing four quarters, resulting in an average surprise of 14.1%.
With three beats over the trailing four quarters, Donaldson has a positive average earnings surprise of 5.9%.
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Fluor Secures Texas Contract for U.S. 287 Expansion Project
Premium engineering and construction firm, Fluor Corporation (FLR - Free Report) , recently announced that it has clinched a “bid-build contract” from Texas Department of Transportation (“TxDOT”), for the U.S. 287 Expansion Project in Ellis County. The company will book the unrevealed contract value in first-quarter 2017.
Fluor believes that this contract win will help it go beyond the usual design-build and private public partnerships as well as fortify its position in the bid-build market. The company has a long history of providing services for infrastructure related projects in Texas for over a decade. Currently, it is working on TxDOT’s Horseshoe Project in Dallas and Central Texas Regional Mobility Authority’s 183 South Project in Austin.
At present, the Texan government is working on transforming Ellis County into a commercial and industrial hub, and that includes the expansion of U.S. 287, a main arterial route in Ennis. The project of widening the U.S. 287 by approximately 4.5 miles is scheduled to commence from spring of 2017 and has an expected completion time of roughly two years.
Fluor has a solid track record of receiving awards. Management remains optimistic that continuation of this trend will drive growth for the company. Fluor’s consolidated backlog at the end of the year was $45.0 billion, up from $44.7 billion in the prior-year quarter. The company remains hopeful that President Trump’s $1 trillion infrastructure plan will unlock multiple lucrative opportunities for the economy.
Fluor has been a long-standing partner of the U.S. government, assisting it in critical projects. The broad-based bipartisan support for infrastructure investment in the U.S. can substantially accelerate Fluor’s growth. Trump’s pledge to cut taxes and regulatory red tape will likely drive the long-term performance of the company.
Despite an impressive market share and contract wins, Fluor’s shares returned 2.2% in the past six months, far lower than the Zacks categorized Engineering R/D Services industry's average positive return of 11.5%. Volatility in commodity prices and the cyclical nature of the company’s commodity-based business lines proved to be major drags on its financial performance.
Furthermore, lingering softness in the mining and metals business continues to dampen lucrative commercial opportunities. Also, Fluor’s earnings estimates moved south over the past couple of months. The Zacks Rank #3 (Hold) company has seen two downward estimate revisions compared to none upward, over the past 60 days. This led the Zacks Consensus Estimate for 2017 to edge down from $2.90 to $2.88, indicating bearish analyst sentiment for the stock.
Stocks to Consider
Better-ranked stocks in the broader sector include EnerSys (ENS - Free Report) , The Middleby Corporation (MIDD - Free Report) and Donaldson Company, Inc. (DCI - Free Report) . All three stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EnerSys has surpassed earnings estimates each time in the past four quarters, with an average positive beat of 4.4%.
Middleby Corporation beat earnings in each of the trailing four quarters, resulting in an average surprise of 14.1%.
With three beats over the trailing four quarters, Donaldson has a positive average earnings surprise of 5.9%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>