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Fluor JV Breaks Ground on $4.9B LAX People-Mover Project

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Fluor Corporation (FLR - Free Report) and its joint venture (JV) team LAX Integrated Express Solutions (LINXS) have broken ground for the people-mover project at Los Angeles International Airport (LAX).

The JV team, comprising Fluor, ACS Infrastructure Development, Balfour Beatty, Bombardier Transportation, Dragados USA, Flatiron and Hochtief PPP Solutions, will oversee the designing, building, financing, operating as well as maintaining of the $4.9-billion project over a span of 30 years

The consortium will build six stations along a 2.25-mile guideway where driverless vehicles will arrive to transport passengers every two minutes during peak periods. This new line will offer ridership capacity of up to 10,000 passengers every hour. The project is expected to wrap up in 2023.

Fluor continues to see opportunities in the infrastructure business. Its infrastructure group has been benefitting from new projects that align with its core expertise in the field of large rail, bridge and highway projects like the Gordie Howe International Bridge, the LA People Mover and the Boston Green Line Rail Extension.

In fact, the company’s Mining, Industrial, Infrastructure & Power segment revenues grew 20.5% year over year to $1,549 million in the fourth quarter of 2018. The segment’s backlog at the end of the quarter was $15.3 billion compared with $9.6 billion a year ago.

Although this Zacks Rank #3 (Hold) stock has underperformed its industry over the past three months, it has solid prospects, as is evident from the Zacks Consensus Estimate for 2019 earnings per share of $2.82, which reflects 31.2% year-over-year growth. Overall, it is a great pick in terms of growth investment, supported by a Growth Score of B.

 



Key Picks

A few better-ranked stocks in the Zacks Construction sector are Quanta Services, Inc. (PWR - Free Report) , Altair Engineering Inc. (ALTR - Free Report) and Emcor Group, Inc. (EME - Free Report) .

While Quanta Services sports a Zacks Rank #1 (Strong Buy), Altair Engineering and Emcor carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Quanta Services’ earnings are expected to grow 25.3% in 2019.

Altair Engineering’s earnings are projected to rise 58.6%.

Emcor’s long-term earnings are estimated to grow 15%.

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