We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fluor (FLR) Q4 Earnings Surpass Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Fluor Corporation (FLR - Free Report) posted its third consecutive earnings beat as the company’s fourth-quarter 2017 adjusted earnings of 70 cents per share surpassed the Zacks Consensus Estimate of 63 cents by 11.1%.
However, the figure decreased 14.6% from the prior-year tally of 82 cents.
In full-year 2017, Fluor’s adjusted earnings from continuing operations came in at $1.63 per share, down 18.5% from the prior year.
Inside the Headlines
Fourth-quarter revenues came in at $5,027.4 million, up 0.8% year over year. Also, the reported figure topped the Zacks Consensus Estimate of $4,773 million. Strong revenue gains from the Government and Diversified Services segments more than offset the revenue decline at the Energy, Chemicals & Mining as well as the Industrial, Infrastructure & Power segments, thus resulting in sturdy top-line performance.
Fluor Corporation Price, Consensus and EPS Surprise
In full-year 2017, the company’s total sales came in at $19.5 billion, up 2.6% from the year-ago tally.
Revenues at the Government segment were up 37.8% year over year to $957.3 million. New awards in the quarter totaled $1.1 billion that includes two task order awards with the U.S. Army Corps of Engineers to restore Puerto Rico’s power.
Diversified Services revenues increased 7.1% to $709.5 million on a year-over-year basis. The segment’s new awards came in at $568 million.
Meanwhile, revenues from the Energy, Chemicals and Mining segment were down 6% year over year to $2,357.7 million. In the reported quarter, the segment booked new awards of $1.1 billion that includes an offshore project in the North Sea.
Industrial, Infrastructure and Power segment's revenues recorded a decline of 10.7% year over year to $1,002.9 million. New awards came in at $483 million including a Greenline light-rail extension project contract in Massachusetts.
In the reported quarter, Fluor's total new awards recorded an increase of 14.5% to $3.2 billion on a year-over-year basis.
At the end of 2017, consolidated backlog was $30.9 billion, down from $45 billion in the year-ago quarter.
Liquidity & Shares Repurchases
As of Dec 31, 2017, Fluor had cash and marketable securities (including non-current) of $2,078.8 million, down from $2,105.0 million as on Dec 31, 2016. Long-term debt at the end of fourth-quarter 2017 rose to $1,591.6 million from $1,517.9 million as on Dec 31, 2016.
Guidance
Concurrent with fourth-quarter results, the company provided its 2018 guidance. For 2018, it projects earnings per share in the range of $3.10-$3.50.
Our Take
Fluor’s top and bottom line surpassed estimates amid tough market conditions, thus highlighting its business model strength that has helped offset major headwinds. Also, it has a solid track record of receiving awards. Management remains optimistic about continuation of this trend in future as well, which is expected to drive growth for the company. This apart, Fluor’s strategy of maintaining a good business portfolio mix permits it to focus on the more stable business markets and capitalize on developing the cyclical markets at suitable times.
However, the Zacks Rank #3 (Hold) company’s margins seem to be under pressure as it is transitioning from higher-margin engineering to lower-margin construction activities, particularly related to the Energy, Chemicals & Mining segment. Slow backlog conversion also remains a persistent problem.
MasTec has an excellent earnings surprise history, surpassing estimates in the trailing four quarters, with an average beat of 28.1%.
D.R. Horton boasts a decent earnings surprise history, exceeding estimates thrice in the trailing four quarters, with an average beat of 5.8%.
KB Home has an impressive earnings surprise history, exceeding estimates in the trailing four quarters, with an average beat of 12.9%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Fluor (FLR) Q4 Earnings Surpass Estimates, Revenues Up Y/Y
Fluor Corporation (FLR - Free Report) posted its third consecutive earnings beat as the company’s fourth-quarter 2017 adjusted earnings of 70 cents per share surpassed the Zacks Consensus Estimate of 63 cents by 11.1%.
However, the figure decreased 14.6% from the prior-year tally of 82 cents.
In full-year 2017, Fluor’s adjusted earnings from continuing operations came in at $1.63 per share, down 18.5% from the prior year.
Inside the Headlines
Fourth-quarter revenues came in at $5,027.4 million, up 0.8% year over year. Also, the reported figure topped the Zacks Consensus Estimate of $4,773 million. Strong revenue gains from the Government and Diversified Services segments more than offset the revenue decline at the Energy, Chemicals & Mining as well as the Industrial, Infrastructure & Power segments, thus resulting in sturdy top-line performance.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation Price, Consensus and EPS Surprise | Fluor Corporation Quote
In full-year 2017, the company’s total sales came in at $19.5 billion, up 2.6% from the year-ago tally.
Revenues at the Government segment were up 37.8% year over year to $957.3 million. New awards in the quarter totaled $1.1 billion that includes two task order awards with the U.S. Army Corps of Engineers to restore Puerto Rico’s power.
Diversified Services revenues increased 7.1% to $709.5 million on a year-over-year basis. The segment’s new awards came in at $568 million.
Meanwhile, revenues from the Energy, Chemicals and Mining segment were down 6% year over year to $2,357.7 million. In the reported quarter, the segment booked new awards of $1.1 billion that includes an offshore project in the North Sea.
Industrial, Infrastructure and Power segment's revenues recorded a decline of 10.7% year over year to $1,002.9 million. New awards came in at $483 million including a Greenline light-rail extension project contract in Massachusetts.
In the reported quarter, Fluor's total new awards recorded an increase of 14.5% to $3.2 billion on a year-over-year basis.
At the end of 2017, consolidated backlog was $30.9 billion, down from $45 billion in the year-ago quarter.
Liquidity & Shares Repurchases
As of Dec 31, 2017, Fluor had cash and marketable securities (including non-current) of $2,078.8 million, down from $2,105.0 million as on Dec 31, 2016. Long-term debt at the end of fourth-quarter 2017 rose to $1,591.6 million from $1,517.9 million as on Dec 31, 2016.
Guidance
Concurrent with fourth-quarter results, the company provided its 2018 guidance. For 2018, it projects earnings per share in the range of $3.10-$3.50.
Our Take
Fluor’s top and bottom line surpassed estimates amid tough market conditions, thus highlighting its business model strength that has helped offset major headwinds. Also, it has a solid track record of receiving awards. Management remains optimistic about continuation of this trend in future as well, which is expected to drive growth for the company. This apart, Fluor’s strategy of maintaining a good business portfolio mix permits it to focus on the more stable business markets and capitalize on developing the cyclical markets at suitable times.
However, the Zacks Rank #3 (Hold) company’s margins seem to be under pressure as it is transitioning from higher-margin engineering to lower-margin construction activities, particularly related to the Energy, Chemicals & Mining segment. Slow backlog conversion also remains a persistent problem.
Stocks to Consider
A few better-ranked stocks in the same space include MasTec, Inc. (MTZ - Free Report) , D.R. Horton, Inc. (DHI - Free Report) and KB Home (KBH - Free Report) . While MasTec sports a Zacks Rank #1 (Strong Buy), D.R. Horton and KB Home carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MasTec has an excellent earnings surprise history, surpassing estimates in the trailing four quarters, with an average beat of 28.1%.
D.R. Horton boasts a decent earnings surprise history, exceeding estimates thrice in the trailing four quarters, with an average beat of 5.8%.
KB Home has an impressive earnings surprise history, exceeding estimates in the trailing four quarters, with an average beat of 12.9%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>