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Fluor's Q3 Earnings & Revenues Miss Estimates, Guidance Lowered
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Fluor Corporation’s (FLR - Free Report) shares dipped 12.3% in the pre-market trading session on Friday. Investors’ sentiments got hurt after it reported lower-than-expected results for third-quarter 2024.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Earnings missed the Zacks Consensus Estimate and declined from the prior year with lower-than-expected contributions from the Energy Solutions segment. Revenues also missed the consensus mark but increased from the previous year.
FLR noted that since the beginning of October, its ownership of NuScale no longer meets the qualifications for consolidation by Fluor. As a result, it will deconsolidate NuScale in the fourth quarter and recognize a gain of $1.6 billion for its 126 million shares. Also, it expects to complete the sale of Stork’s U.K. operations by the first quarter of 2025, pending regulatory approval.
Inside the Headlines
Fluor reported adjusted earnings per share (EPS) of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.
Fluor Corporation Price, Consensus and EPS Surprise
Quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.
The company’s segment profit was $117 million, down from $276 million a year ago. The segment margin was 2.9%, down from 7% in the year-ago period. Adjusted EBITDA in the reported period was $124 million, down from $216 million in the prior-year period.
Fluor's total new awards in the quarter were $2.7 billion compared with $4.98 billion in the year-ago period. The consolidated backlog at the third-quarter end was $31.32 billion, up from $26 billion a year ago.
Segmental Discussion
The Energy Solutions segment’s revenues declined 8% year over year to $1.43 billion in the quarter. The segment’s margin was 3.5% in the quarter, significantly down from 11.4% a year ago.
New awards were $1.54 billion, down from $3.25 billion a year ago. The backlog at the quarter-end was $8.82 billion, down from $9.16 billion a year ago.
Revenues in the Urban Solutions segment totaled $1.93 billion, up 34.9% on a year-over-year basis. The segment’s margin was 3.5% in the quarter, down from 4.6% a year ago.
New awards were $828 million in the quarter, down from $1.03 billion a year ago. The backlog at the quarter-end was $19.01 billion, up from $11.05 billion a year ago.
Revenues in the Mission Solutions segment totaled $635 million, down 3.1% from the year-ago level of $655 million. Nonetheless, the segment’s margin improved to 7.1% from the previous year’s 5.8%.
It booked new awards worth $274 million, down from $345 million a year ago. The backlog at the quarter-end was $3.1 billion, down from $4.56 billion a year ago.
The Other segment, which comprises Stork and Fluor’s ownership in NuScale, generated revenues of $100 million in the quarter, down from $324 million in the year-ago period. The segment generated a loss of $46 million compared with a $5 million loss a year ago.
It booked new awards worth $56 million, significantly down from the year-ago level of $346 million. The backlog at the quarter-end was $394 million, down from $1.23 billion a year ago.
FLR’s Financial Details
As of Sept. 30, 2024, FLR had cash and cash equivalents of $2.91 billion, up from $2.42 billion at the end of third-quarter 2023.
Cash provided by operating activities was $501 million in the first nine months of 2024 compared with cash provided to operations of $96 million in the comparable year-ago period.
Reduced 2024 Guidance
For 2024, Fluor now expects adjusted EPS in the range of $2.55-$2.75 from the prior expectation of $2.50-$3.00. The expected range is below 2023 reported figure of $2.73.
The company lowered its adjusted EBITDA guidance to $525-$575 million from $625-$675 million expected earlier. The guidance reflects the timing of revenue and cancelation of certain projects. In 2023, the company reported adjusted EBITDA of $613 million.
KBR, Inc. (KBR - Free Report) reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
The quarter’s results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.
Quanta Services Inc. (PWR - Free Report) reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.
Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.
Louisiana-Pacific Corporation (LPX - Free Report) , or LP, reported impressive third-quarter 2024 results. Earnings and net sales beat the respective Zacks Consensus Estimate.
Although the metrics decreased on a year-over-year basis, LP outpaced the guidance it previously provided for the quarter.
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Fluor's Q3 Earnings & Revenues Miss Estimates, Guidance Lowered
Fluor Corporation’s (FLR - Free Report) shares dipped 12.3% in the pre-market trading session on Friday. Investors’ sentiments got hurt after it reported lower-than-expected results for third-quarter 2024.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Earnings missed the Zacks Consensus Estimate and declined from the prior year with lower-than-expected contributions from the Energy Solutions segment. Revenues also missed the consensus mark but increased from the previous year.
FLR noted that since the beginning of October, its ownership of NuScale no longer meets the qualifications for consolidation by Fluor. As a result, it will deconsolidate NuScale in the fourth quarter and recognize a gain of $1.6 billion for its 126 million shares. Also, it expects to complete the sale of Stork’s U.K. operations by the first quarter of 2025, pending regulatory approval.
Inside the Headlines
Fluor reported adjusted earnings per share (EPS) of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation price-consensus-eps-surprise-chart | Fluor Corporation Quote
Quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.
The company’s segment profit was $117 million, down from $276 million a year ago. The segment margin was 2.9%, down from 7% in the year-ago period. Adjusted EBITDA in the reported period was $124 million, down from $216 million in the prior-year period.
Fluor's total new awards in the quarter were $2.7 billion compared with $4.98 billion in the year-ago period. The consolidated backlog at the third-quarter end was $31.32 billion, up from $26 billion a year ago.
Segmental Discussion
The Energy Solutions segment’s revenues declined 8% year over year to $1.43 billion in the quarter. The segment’s margin was 3.5% in the quarter, significantly down from 11.4% a year ago.
New awards were $1.54 billion, down from $3.25 billion a year ago. The backlog at the quarter-end was $8.82 billion, down from $9.16 billion a year ago.
Revenues in the Urban Solutions segment totaled $1.93 billion, up 34.9% on a year-over-year basis. The segment’s margin was 3.5% in the quarter, down from 4.6% a year ago.
New awards were $828 million in the quarter, down from $1.03 billion a year ago. The backlog at the quarter-end was $19.01 billion, up from $11.05 billion a year ago.
Revenues in the Mission Solutions segment totaled $635 million, down 3.1% from the year-ago level of $655 million. Nonetheless, the segment’s margin improved to 7.1% from the previous year’s 5.8%.
It booked new awards worth $274 million, down from $345 million a year ago. The backlog at the quarter-end was $3.1 billion, down from $4.56 billion a year ago.
The Other segment, which comprises Stork and Fluor’s ownership in NuScale, generated revenues of $100 million in the quarter, down from $324 million in the year-ago period. The segment generated a loss of $46 million compared with a $5 million loss a year ago.
It booked new awards worth $56 million, significantly down from the year-ago level of $346 million. The backlog at the quarter-end was $394 million, down from $1.23 billion a year ago.
FLR’s Financial Details
As of Sept. 30, 2024, FLR had cash and cash equivalents of $2.91 billion, up from $2.42 billion at the end of third-quarter 2023.
Cash provided by operating activities was $501 million in the first nine months of 2024 compared with cash provided to operations of $96 million in the comparable year-ago period.
Reduced 2024 Guidance
For 2024, Fluor now expects adjusted EPS in the range of $2.55-$2.75 from the prior expectation of $2.50-$3.00. The expected range is below 2023 reported figure of $2.73.
The company lowered its adjusted EBITDA guidance to $525-$575 million from $625-$675 million expected earlier. The guidance reflects the timing of revenue and cancelation of certain projects. In 2023, the company reported adjusted EBITDA of $613 million.
Zacks Rank & Peer 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.
KBR, Inc. (KBR - Free Report) reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
The quarter’s results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.
Quanta Services Inc. (PWR - Free Report) reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.
Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.
Louisiana-Pacific Corporation (LPX - Free Report) , or LP, reported impressive third-quarter 2024 results. Earnings and net sales beat the respective Zacks Consensus Estimate.
Although the metrics decreased on a year-over-year basis, LP outpaced the guidance it previously provided for the quarter.