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Fluor's (FLR) Stock Down on Q1 Earnings & Revenues Miss
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Fluor Corporation (FLR - Free Report) reported tepid results for first-quarter 2024, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis earnings increased, despite a revenue decline.
The downside was due to lower contributions from the Energy and Mission Solutions segments. However, solid contributions from Urban Solutions aided the top line. The company experienced solid growth in new awards and backlog value, solidifying its growth prospects.
The company’s shares declined 6.4% on May 3 in the pre-market trading session.
Inside the Headlines
Fluor reported adjusted earnings per share (EPS) of 47 cents, which missed the Zacks Consensus Estimate of 54 cents by 13%. The reported figure increased from EPS of 28 cents a year ago.
Quarterly revenues of $3.73 billion missed the consensus mark of $3.94 billion by 5.2%. The figure dropped 0.5% from the year-ago quarter’s level of $3.75 billion.
Fluor Corporation Price, Consensus and EPS Surprise
The company’s segment profit was $118 million against a loss of $15 million a year ago. The segment margin was 3.2% versus a negative 0.4% in the year-ago period. Adjusted EBITDA in the reported period was $88 million, up from $71 million in the prior-year period.
Fluor's total new awards in the quarter were $7 billion compared with $3.23 billion in the year-ago period. The consolidated backlog at the first-quarter end was $32.7 billion, up from $25.6 billion a year ago.
Segmental Discussion
The Energy Solutions segment’s revenues declined 11.2% year over year to $1.43 billion in the first quarter. The segment margin was 4.7% in the quarter, down from 5.5% a year ago. New awards were $716 million, up from $712 million a year ago. The backlog at the quarter-end was $9.26 billion, up from $8.56 billion a year ago.
Revenues in the Urban Solutions segment totaled $1.48 billion, up 22.4% on a year-over-year basis. The segment margin was 3.4% in the quarter against a negative 1.7% a year ago. New awards were $4.87 billion in the quarter, up from $1.78 billion a year ago. The backlog at the quarter-end was $18.6 billion, up from $10.66 billion a year ago.
Revenues in the Mission Solutions segment totaled $601 million, down 7.4% on a year-over-year basis. The segment margin improved 260 basis points (bps) to 3.7% from the previous year’s tally. It booked new awards worth $1.15 billion, up from $331 million a year ago. The backlog at the quarter-end was $4.39 billion, down from $5.24 billion a year ago.
The Other segment, which comprises NuScale, generated revenues of $222 million for the quarter, down 21.6% from the year-ago period. The segment generated a loss of $22 million compared with a $90 million loss a year ago. It booked new awards worth $284 million, down from the year-ago level of $416 million. The backlog at the quarter-end was $488 million, down from $1.17 billion a year ago.
Retained 2024 Guidance
For 2024, Fluor expects adjusted EPS in the range of $2.50-$3.00. The full-year revenues are expected to grow approximately 15% year over year.
It expects adjusted EBITDA to be between $600 million and $700 million. For the year, G&A expenses are expected to be about $190 million.
Fluor projects the margin percentage for its segments, including Energy Solutions, Urban Solutions and Mission Solutions, to be 5%, within 4% and 6%, respectively.
For 2026, it still anticipates adjusted EBITDA in the range of $800-950 million.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results in the first quarter of 2024. Earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. The top and the bottom line declined on a year-over-year basis.
Going forward, MLM anticipates record federal-level and state-level infrastructure investments, large-scale heavy industrial activity, data centers and energy projects to offset softer residential and warehouse construction demand and anticipated moderation in light non-residential activity.
KBR, Inc. (KBR - Free Report) reported better-than-expected results in first-quarter 2024 (ended Mar 29), with earnings and revenues surpassing the Zacks Consensus Estimate.
Earnings and revenues increased on a year-over-year basis, particularly showcasing solid performance in adjusted EBITDA and operating cash flow. Bookings during the quarter were well-aligned with end markets across energy security, national defense, human performance and sustainability.
Gibraltar Industries, Inc. (ROCK - Free Report) reported mixed first-quarter 2024 results, with quarterly earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.
The company’s quarterly results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its upcoming growth prospects with its robust end-market fundamentals, backed by increased backlog levels.
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Fluor's (FLR) Stock Down on Q1 Earnings & Revenues Miss
Fluor Corporation (FLR - Free Report) reported tepid results for first-quarter 2024, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis earnings increased, despite a revenue decline.
The downside was due to lower contributions from the Energy and Mission Solutions segments. However, solid contributions from Urban Solutions aided the top line. The company experienced solid growth in new awards and backlog value, solidifying its growth prospects.
The company’s shares declined 6.4% on May 3 in the pre-market trading session.
Inside the Headlines
Fluor reported adjusted earnings per share (EPS) of 47 cents, which missed the Zacks Consensus Estimate of 54 cents by 13%. The reported figure increased from EPS of 28 cents a year ago.
Quarterly revenues of $3.73 billion missed the consensus mark of $3.94 billion by 5.2%. The figure dropped 0.5% from the year-ago quarter’s level of $3.75 billion.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation price-consensus-eps-surprise-chart | Fluor Corporation Quote
The company’s segment profit was $118 million against a loss of $15 million a year ago. The segment margin was 3.2% versus a negative 0.4% in the year-ago period. Adjusted EBITDA in the reported period was $88 million, up from $71 million in the prior-year period.
Fluor's total new awards in the quarter were $7 billion compared with $3.23 billion in the year-ago period. The consolidated backlog at the first-quarter end was $32.7 billion, up from $25.6 billion a year ago.
Segmental Discussion
The Energy Solutions segment’s revenues declined 11.2% year over year to $1.43 billion in the first quarter. The segment margin was 4.7% in the quarter, down from 5.5% a year ago. New awards were $716 million, up from $712 million a year ago. The backlog at the quarter-end was $9.26 billion, up from $8.56 billion a year ago.
Revenues in the Urban Solutions segment totaled $1.48 billion, up 22.4% on a year-over-year basis. The segment margin was 3.4% in the quarter against a negative 1.7% a year ago. New awards were $4.87 billion in the quarter, up from $1.78 billion a year ago. The backlog at the quarter-end was $18.6 billion, up from $10.66 billion a year ago.
Revenues in the Mission Solutions segment totaled $601 million, down 7.4% on a year-over-year basis. The segment margin improved 260 basis points (bps) to 3.7% from the previous year’s tally. It booked new awards worth $1.15 billion, up from $331 million a year ago. The backlog at the quarter-end was $4.39 billion, down from $5.24 billion a year ago.
The Other segment, which comprises NuScale, generated revenues of $222 million for the quarter, down 21.6% from the year-ago period. The segment generated a loss of $22 million compared with a $90 million loss a year ago. It booked new awards worth $284 million, down from the year-ago level of $416 million. The backlog at the quarter-end was $488 million, down from $1.17 billion a year ago.
Retained 2024 Guidance
For 2024, Fluor expects adjusted EPS in the range of $2.50-$3.00. The full-year revenues are expected to grow approximately 15% year over year.
It expects adjusted EBITDA to be between $600 million and $700 million. For the year, G&A expenses are expected to be about $190 million.
Fluor projects the margin percentage for its segments, including Energy Solutions, Urban Solutions and Mission Solutions, to be 5%, within 4% and 6%, respectively.
For 2026, it still anticipates adjusted EBITDA in the range of $800-950 million.
Zacks Rank & Recent Construction Releases
Fluor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results in the first quarter of 2024. Earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. The top and the bottom line declined on a year-over-year basis.
Going forward, MLM anticipates record federal-level and state-level infrastructure investments, large-scale heavy industrial activity, data centers and energy projects to offset softer residential and warehouse construction demand and anticipated moderation in light non-residential activity.
KBR, Inc. (KBR - Free Report) reported better-than-expected results in first-quarter 2024 (ended Mar 29), with earnings and revenues surpassing the Zacks Consensus Estimate.
Earnings and revenues increased on a year-over-year basis, particularly showcasing solid performance in adjusted EBITDA and operating cash flow. Bookings during the quarter were well-aligned with end markets across energy security, national defense, human performance and sustainability.
Gibraltar Industries, Inc. (ROCK - Free Report) reported mixed first-quarter 2024 results, with quarterly earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.
The company’s quarterly results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its upcoming growth prospects with its robust end-market fundamentals, backed by increased backlog levels.