Markets
FLR

Flour (FLR) Beats on Q4 Earnings and Revenues

A generic image of money and a calculator
Credit: Shutterstock photo

Headquartered in Irving, TX, Fluor CorporationFLR provides engineering, procurement, construction and maintenance services (EPCM) through a number of subsidiaries. The company also provides its operations and maintenance services to major industrial clients.

Fluor's restructuring initiatives, industry-leading franchise within the U.S., diligent management and proven business model are its key strengths that has been driving growth. Restructuring initiatives, under its construction and fabrication operations, implemented over the past few months are expected to boost key financials.

Fluor has a solid track record of receiving awards which supplements top-line performance. We believe there is a strong potential for margin upside from new awards.

However, on the flip side, sluggish backlog conversion problem has been a persistent crisis in this sector, mainly attributable to uncertain macroeconomic conditions. This implies that the company's backlog level cannot be regarded as a reliable indicator of earnings growth. Precipitous decline in the prices of crude oil and certain metals has affected the ability of clients to fund new projects. Also, lower prices offered by the clients, combined with increased level of irrational bidding in feed pricing add to its woes.

In the last four trailing quarters, FLR has missed earnings estimates thrice resulting in an average negative surprise of 3.9%.

Currently, FLR has a Zacks Rank #3 (Hold) but that could change following its fourth-quarter 2016 earnings report which has just released. You can see the complete list of today's Zacks #1 Rank stocks here .

We have highlighted some of the key details from the just-released announcement below.

Earnings: For the fourth-quarter 2016 the company reported adjusted earnings from continuing operations of 82 cents per share, higher the Zacks Consensus Estimate of 80 cents.

Revenues: Revenues came in at $4,989.6 million, above the Zacks Consensus Estimate of $4,834 million.

Key Stats: In 2016, FLR completed the buyout of Stork, incurred an investment of a fabrication facility in China and even submitted NuScale's small modular reactor application to the NRC. Notably, FLR paid dividends worth $118 million in 2016. The company perceives that these aspects would boost its revenues and profitability in the quarters ahead.

For 2017, FLR anticipates to accrue earnings within the range of $2.75 to $3.25 per share.

Stock Price: FLR shares were inactive in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Fluor Corporation Price

Fluor Corporation Price | Fluor Corporation Quote

Just Released - Driverless Cars: Your Roadmap to Mega-Profits Today

In this latest Special Report, Zacks' Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making - autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fluor Corporation (FLR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FLR

Other Topics

Earnings Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More