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Fluor's (FLR) Q1 Earnings Lag Estimates, Stock Up on New Awards
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Fluor Corporation (FLR - Free Report) reported lower-than-expected first-quarter 2022 results, wherein earnings and revenues lagged the Zacks Consensus Estimate. Earnings missed the consensus mark after beating for the fourth straight quarter, whereas revenues missed the same for the seventh consecutive quarter. That said, adjusted earnings grew significantly due to higher margins.
Following the results, shares of the company gained 4.6%.
Elaborating on the future performance, David Constable, chief executive officer of Fluor, said, "We see our clients moving forward with a significant amount of work over the next few quarters, and we are well positioned to deploy our world-class teams to support their efforts."
Fluor Corporation Price, Consensus and EPS Surprise
Fluor reported adjusted earnings of 16 cents per share, missing the Zacks Consensus Estimate of 20 cents by 20%. Nonetheless, the reported figure grew significantly from 3 cents a year ago.
Quarterly revenues of $3,122 million missed the consensus mark of $3,189 million by 2.1%. It decreased 6.7% from the year-ago level of $3,347 million. The downside was primarily caused by lower contribution from the Urban and Missions Solutions segments.
Overall, the company’s profit came in at $115 million, reflecting an increase from $60 million a year ago. Segment margin of 3.7% improved from 1.8% in the year-ago period.
Fluor's total new awards for the quarter came in at $1.93 billion compared with $3.88 billion in the year-ago period. Consolidated backlog for the year came in at $19.25 billion, down from $20.8 billion at 2021-end.
Notably, NuScale completed its de-SPAC transaction with Spring Valley Acquisition Corporation and is now publicly traded on the NYSE under the ticker symbol SMR. As of May 2, Fluor owns 57% of NuScale.
Segmental Discussion
The company now reports results in four reportable segments as follows: Energy Solutions, Urban Solutions, Mission Solutions and Other.
Energy & Chemicals segment’s revenues grew 18.5% year over year to $1,174 million for the quarter. The segment reported a profit of $54 million, up from $2 million a year ago. New awards came in at $682 million in the quarter, down from $1,609 million in the first quarter of 2021. Backlog at quarter-end was $8.5 billion compared with $9.3 billion at 2021-end.
Revenues in the Urban Solutions segment totaled $959 million, down 19.7% on a year-over-year basis. Segment profit totaled $15 million versus $30 million a year ago. New awards came in at $598 million for the quarter, down from $1,061 million a year ago. Backlog at quarter-end was $6.69 billion compared with $7.05 billion at 2021-end.
Revenues in the Mission Solutions segment totaled $593 million, down 21.2% on a year-over-year basis. The segment reported a profit of $58 million compared with $44 million a year ago. It booked new awards worth $386 million, down from $992 million a year ago. Backlog at quarter-end was $2.28 billion compared with $2.56 billion at 2021-end.
The Other segment — comprising NuScale — generated revenues of $396 million for the quarter versus $409 million in the year-ago period. This segment incurred a loss of $12 million versus a loss of $16 million a year ago. It booked new awards worth $260 million, up from $222 million a year ago. Backlog at quarter-end was $1.78 billion compared with $1.87 billion at 2021-end.
2022 Guidance
For 2022, Fluor still expects adjusted earnings per share in the range of $1.15-$1.40. The consensus mark for the same is currently pegged at $1.34 per share.
Quanta Services Inc. (PWR - Free Report) reported impressive results for first-quarter 2022. Adjusted earnings and revenues surpassed the Zacks Consensus Estimate and increased impressively on a year-over-year basis.
Quanta’s adjusted earnings increased 65.1% from the year-ago period. The upside was backed by revenue growth across the segments, record total backlog, and a solid and safe project execution.
KBR, Inc. (KBR - Free Report) reported mixed results for first-quarter 2022, with earnings topping the Zacks Consensus Estimate and revenues missing the same.
On a year-over-year basis, the metrics increased strongly. KBR benefited from a solid Government Solutions growth and strong execution across the business.
Jacobs Engineering Group Inc. (J - Free Report) reported second-quarter fiscal 2022 (ended Apr 1, 2022) results, with earnings and revenues surpassing their respective Zacks Consensus Estimate and rising year over year.
J’s earnings topped analysts’ expectations in three of the trailing four quarters, with an average of 3.9%.
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Fluor's (FLR) Q1 Earnings Lag Estimates, Stock Up on New Awards
Fluor Corporation (FLR - Free Report) reported lower-than-expected first-quarter 2022 results, wherein earnings and revenues lagged the Zacks Consensus Estimate. Earnings missed the consensus mark after beating for the fourth straight quarter, whereas revenues missed the same for the seventh consecutive quarter. That said, adjusted earnings grew significantly due to higher margins.
Following the results, shares of the company gained 4.6%.
Elaborating on the future performance, David Constable, chief executive officer of Fluor, said, "We see our clients moving forward with a significant amount of work over the next few quarters, and we are well positioned to deploy our world-class teams to support their efforts."
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation price-consensus-eps-surprise-chart | Fluor Corporation Quote
Inside the Headlines
Fluor reported adjusted earnings of 16 cents per share, missing the Zacks Consensus Estimate of 20 cents by 20%. Nonetheless, the reported figure grew significantly from 3 cents a year ago.
Quarterly revenues of $3,122 million missed the consensus mark of $3,189 million by 2.1%. It decreased 6.7% from the year-ago level of $3,347 million. The downside was primarily caused by lower contribution from the Urban and Missions Solutions segments.
Overall, the company’s profit came in at $115 million, reflecting an increase from $60 million a year ago. Segment margin of 3.7% improved from 1.8% in the year-ago period.
Fluor's total new awards for the quarter came in at $1.93 billion compared with $3.88 billion in the year-ago period. Consolidated backlog for the year came in at $19.25 billion, down from $20.8 billion at 2021-end.
Notably, NuScale completed its de-SPAC transaction with Spring Valley Acquisition Corporation and is now publicly traded on the NYSE under the ticker symbol SMR. As of May 2, Fluor owns 57% of NuScale.
Segmental Discussion
The company now reports results in four reportable segments as follows: Energy Solutions, Urban Solutions, Mission Solutions and Other.
Energy & Chemicals segment’s revenues grew 18.5% year over year to $1,174 million for the quarter. The segment reported a profit of $54 million, up from $2 million a year ago. New awards came in at $682 million in the quarter, down from $1,609 million in the first quarter of 2021. Backlog at quarter-end was $8.5 billion compared with $9.3 billion at 2021-end.
Revenues in the Urban Solutions segment totaled $959 million, down 19.7% on a year-over-year basis. Segment profit totaled $15 million versus $30 million a year ago. New awards came in at $598 million for the quarter, down from $1,061 million a year ago. Backlog at quarter-end was $6.69 billion compared with $7.05 billion at 2021-end.
Revenues in the Mission Solutions segment totaled $593 million, down 21.2% on a year-over-year basis. The segment reported a profit of $58 million compared with $44 million a year ago. It booked new awards worth $386 million, down from $992 million a year ago. Backlog at quarter-end was $2.28 billion compared with $2.56 billion at 2021-end.
The Other segment — comprising NuScale — generated revenues of $396 million for the quarter versus $409 million in the year-ago period. This segment incurred a loss of $12 million versus a loss of $16 million a year ago. It booked new awards worth $260 million, up from $222 million a year ago. Backlog at quarter-end was $1.78 billion compared with $1.87 billion at 2021-end.
2022 Guidance
For 2022, Fluor still expects adjusted earnings per share in the range of $1.15-$1.40. The consensus mark for the same is currently pegged at $1.34 per share.
Zacks Rank
Fluor currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Quanta Services Inc. (PWR - Free Report) reported impressive results for first-quarter 2022. Adjusted earnings and revenues surpassed the Zacks Consensus Estimate and increased impressively on a year-over-year basis.
Quanta’s adjusted earnings increased 65.1% from the year-ago period. The upside was backed by revenue growth across the segments, record total backlog, and a solid and safe project execution.
KBR, Inc. (KBR - Free Report) reported mixed results for first-quarter 2022, with earnings topping the Zacks Consensus Estimate and revenues missing the same.
On a year-over-year basis, the metrics increased strongly. KBR benefited from a solid Government Solutions growth and strong execution across the business.
Jacobs Engineering Group Inc. (J - Free Report) reported second-quarter fiscal 2022 (ended Apr 1, 2022) results, with earnings and revenues surpassing their respective Zacks Consensus Estimate and rising year over year.
J’s earnings topped analysts’ expectations in three of the trailing four quarters, with an average of 3.9%.