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Fluor (FLR) to Report Q4 Earnings: What's in the Cards?

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Fluor Corporation (FLR - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 20, before market open.

In the last reported quarter, Fluor’s adjusted earnings and revenues beat the Zacks Consensus Estimate by 85.5% and 3.2%, respectively. This engineering, procurement, construction and maintenance services provider’s third-quarter 2023 adjusted earnings per share (EPS) of $1.02 increased significantly from 7 cents a year ago. Quarterly revenues of $3.96 billion increased 9.7% from the year-ago level.

Notably, Fluor topped the Zacks Consensus Estimate in two of the trailing four quarters and missed on other two occasions, with the average surprise being 37.5%.

Trend in Estimate Revision

The Zacks Consensus Estimate for the to-be-reported quarter’s EPS has remained unchanged at 56 cents over the past 60 days. The estimated figure indicates 30.2% growth from the year-ago EPS of 43 cents.

Fluor Corporation Price and EPS Surprise

Fluor Corporation Price and EPS Surprise

Fluor Corporation price-eps-surprise | Fluor Corporation Quote

Factors to Note

The company is poised to see a boost in its quarterly performance, thanks to its recent cost-plus/low-risk bookings, its dedication to "Building a Better Future" strategy, and its diversified presence in the market. Robust demand for its services, particularly from sectors such as chemicals, fuel production, mining, and metals, is poised to bolster the company's quarterly demand.

Furthermore, the company is anticipated to profit from the increasing global energy demand. Fluor’s successful execution of significant Energy Solutions projects and continued advancements in its legacy portfolio projects further enhance its positive outlook. Fluor's strong backlog performance is still being influenced by a few remaining legacy projects.

Segment-wise, the Zacks Consensus Estimate for Energy Solutions revenues (comprising 39.2% of third-quarter 2023 total revenues) is currently pegged at $1.79 billion, up 0.7% year over year.

The consensus mark for Urban Solutions revenues (comprising 36.1% of third-quarter 2023 total revenues) of $1.23 billion reflects 25.8% growth year over year.

The consensus mark for Mission Solutions segment revenues (comprising 16.5% of third-quarter 2023 total revenues) of $592 million depicts 16.3% year-over-year growth.

Other segment (comprising 8.2% of third-quarter revenues) is expected to register revenues of $592 million, up 16.3% year over year.

From the margin perspective, higher overhead costs, additional costs on a legacy infrastructure project, a lack of contractual protection for the supply chain and intense competition are expected to have weighed on the quarterly performance.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Fluor for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here, as you will see below.

Earnings ESP: Fluor has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FLR currently carries a Zacks Rank #3.

Stocks With Favorable Combination

Here are some other companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat on their respective quarters to be reported.

JELD-WEN Holding, Inc. (JELD - Free Report) has an Earnings ESP of +10.90% and has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

JELD’s earnings topped the consensus mark in each of the last four quarters, with the average being 126.5%. Earnings for the to-be-reported quarter are expected to decline 46.8% year over year.

Floor & Decor Holdings, Inc. (FND - Free Report) has an Earnings ESP of +6.74% and a Zacks Rank #2.

FND’s earnings for the to-be-reported quarter are expected to decline 57.8%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion while met on another, the average surprise being 4.9%.

Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #3.

VMC’s earnings for the to-be-reported quarter are expected to grow 25.9%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 13.6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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