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Why Is Fluor (FLR) Down 1.5% Since its Last Earnings Report?
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It has been about a month since the last earnings report for Fluor Corporation (FLR - Free Report) . Shares have lost about 1.5% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is FLR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fluor Q4 Earnings Surpass Estimates, Revenues Up Y/Y
Fluor 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter. In the past month, the consensus estimate has shifted by 45.9% due to these changes.
At this time, FLR has a poor Growth Score of F, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than value investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise FLR has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Fluor (FLR) Down 1.5% Since its Last Earnings Report?
It has been about a month since the last earnings report for Fluor Corporation (FLR - Free Report) . Shares have lost about 1.5% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is FLR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fluor Q4 Earnings Surpass Estimates, Revenues Up Y/Y
Fluor 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter. In the past month, the consensus estimate has shifted by 45.9% due to these changes.
Fluor Corporation Price and Consensus
Fluor Corporation Price and Consensus | Fluor Corporation Quote
VGM Scores
At this time, FLR has a poor Growth Score of F, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than value investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise FLR has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.