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Fluor Corporation’s (FLR - Free Report) third-quarter 2018 earnings came in below analysts’ expectation and also decreased from the year-ago figure. The company reported earnings of 55 cents per share in the quarter, missing the Zacks Consensus Estimate of 58 cents by 5.2%. The reported earnings also declined 13.4% from 67 cents per share recorded in the year-ago period.
Third-quarter revenues came in at $4,658 million, lagging the consensus mark of $4,695 million and also decreasing 5.7% year over year. The downside was mainly due to decrease in revenues from Energy & Chemicals, and Diversified Services segments.
Segment Discussion
Revenues from the Energy & Chemicals segment were down 14% year over year to $1,902.3 million. In the reported quarter, the segment booked new awards of $644 million. Backlog at the end of the quarter amounted to 11.4 billion compared with $16.5 billion a year ago. Operating margin decreased 190 basis points (bps) year over year to 2.6%.
Mining, Industrial, Infrastructure & Power segment's revenues recorded growth of 3.6% year over year to $1,387.3 million. New awards came in at $5.4 billion, including a copper mine in Peru and an international bridge project in Canada. Backlog for the segment at the end of the quarter was $16.5 billion compared with $10.1 billion a year ago. Operating margin expanded 450 bps to 7.3% in the quarter.
Revenues at the Government segment inched up 1.9% year over year to $780.9 million. That said, operating margin grew 20 bps to 4.1% in the quarter. The business received new awards of $3.3 billion in the quarter. Quarter-end backlog was $5.1 billion compared with $3.6 billion a year ago.
Diversified Services revenues decreased 5.8% to $587.5 million on a year-over-year basis. The segment’s new awards came in at $336 million. Quarter-end backlog was $2 billion compared with $2.7 billion a year ago. Operating margin contracted 160 bps to 4.1% in the quarter.
Fluor Corporation Price, Consensus and EPS Surprise
In the reported quarter, Fluor's total new awards recorded an increase of 152.3% to $9.6 billion on a year-over-year basis, courtesy of improvements in energy and commodity markets, as well as the achievements in infrastructure and government business.
At the end of the reported quarter, consolidated backlog was $34.9 billion, up from $32.9 billion in the year-ago quarter. The company expects the improved momentum to continue through the remaining of 2018.
Liquidity & Share Repurchases
As of Sep 30, 2018, Fluor had cash and marketable securities (including non-current assets) of $1,922.8 million, down from $2,078.8 million on Dec 31, 2017. Long-term debt at the end of third-quarter 2018 increased to $1,667.4 million from $1,591.6 million as of Dec 31, 2017.
2018 Guidance
For 2018, it currently expects earnings per share in the range of $1.80-$1.90 versus $2.10-$2.50 expected earlier.
KBR, Inc.’s (KBR - Free Report) third-quarter 2018 adjusted earnings of 46 cents per share beat the Zacks Consensus Estimate of 39 cents by 18% and also increased 31.4% from 35 cents recorded a year ago. The company’s revenues of $1,278 million lagged the consensus mark of $1,308 million but improved 23.6% year over year.
Quanta Services Inc. (PWR - Free Report) reported third-quarter 2018 adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents by 11.1%. However, the reported figure notably increased 39.7% from 63 cents recorded a year ago. Total revenues came in at a record level of $2.99 billion, surpassing the consensus mark of $2.95 billion by 1.3%. Also, the top line increased 14.6% year over year, aided by robust revenue growth across the board.
Upcoming Peer Release
Jacobs Engineering Group Inc. is scheduled to report fourth-quarter fiscal 2018 results on Nov 20, before the opening bell.
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Fluor's (FLR) Q3 Earnings & Revenues Miss, Guidance Cut
Fluor Corporation’s (FLR - Free Report) third-quarter 2018 earnings came in below analysts’ expectation and also decreased from the year-ago figure. The company reported earnings of 55 cents per share in the quarter, missing the Zacks Consensus Estimate of 58 cents by 5.2%. The reported earnings also declined 13.4% from 67 cents per share recorded in the year-ago period.
Third-quarter revenues came in at $4,658 million, lagging the consensus mark of $4,695 million and also decreasing 5.7% year over year. The downside was mainly due to decrease in revenues from Energy & Chemicals, and Diversified Services segments.
Segment Discussion
Revenues from the Energy & Chemicals segment were down 14% year over year to $1,902.3 million. In the reported quarter, the segment booked new awards of $644 million. Backlog at the end of the quarter amounted to 11.4 billion compared with $16.5 billion a year ago. Operating margin decreased 190 basis points (bps) year over year to 2.6%.
Mining, Industrial, Infrastructure & Power segment's revenues recorded growth of 3.6% year over year to $1,387.3 million. New awards came in at $5.4 billion, including a copper mine in Peru and an international bridge project in Canada. Backlog for the segment at the end of the quarter was $16.5 billion compared with $10.1 billion a year ago. Operating margin expanded 450 bps to 7.3% in the quarter.
Revenues at the Government segment inched up 1.9% year over year to $780.9 million. That said, operating margin grew 20 bps to 4.1% in the quarter. The business received new awards of $3.3 billion in the quarter. Quarter-end backlog was $5.1 billion compared with $3.6 billion a year ago.
Diversified Services revenues decreased 5.8% to $587.5 million on a year-over-year basis. The segment’s new awards came in at $336 million. Quarter-end backlog was $2 billion compared with $2.7 billion a year ago. Operating margin contracted 160 bps to 4.1% in the quarter.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation Price, Consensus and EPS Surprise | Fluor Corporation Quote
New Awards & Backlog
In the reported quarter, Fluor's total new awards recorded an increase of 152.3% to $9.6 billion on a year-over-year basis, courtesy of improvements in energy and commodity markets, as well as the achievements in infrastructure and government business.
At the end of the reported quarter, consolidated backlog was $34.9 billion, up from $32.9 billion in the year-ago quarter. The company expects the improved momentum to continue through the remaining of 2018.
Liquidity & Share Repurchases
As of Sep 30, 2018, Fluor had cash and marketable securities (including non-current assets) of $1,922.8 million, down from $2,078.8 million on Dec 31, 2017. Long-term debt at the end of third-quarter 2018 increased to $1,667.4 million from $1,591.6 million as of Dec 31, 2017.
2018 Guidance
For 2018, it currently expects earnings per share in the range of $1.80-$1.90 versus $2.10-$2.50 expected earlier.
Currently, Fluor carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
KBR, Inc.’s (KBR - Free Report) third-quarter 2018 adjusted earnings of 46 cents per share beat the Zacks Consensus Estimate of 39 cents by 18% and also increased 31.4% from 35 cents recorded a year ago. The company’s revenues of $1,278 million lagged the consensus mark of $1,308 million but improved 23.6% year over year.
Quanta Services Inc. (PWR - Free Report) reported third-quarter 2018 adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents by 11.1%. However, the reported figure notably increased 39.7% from 63 cents recorded a year ago. Total revenues came in at a record level of $2.99 billion, surpassing the consensus mark of $2.95 billion by 1.3%. Also, the top line increased 14.6% year over year, aided by robust revenue growth across the board.
Upcoming Peer Release
Jacobs Engineering Group Inc. is scheduled to report fourth-quarter fiscal 2018 results on Nov 20, before the opening bell.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>