Fluor Misses Earnings Expectations: What’s Next?
Fluor (FLR) reported quarterly earnings of $0.51 per share, falling short of the Zacks Consensus Estimate of $0.78 per share. In the same period last year, earnings stood at $1.02 per share, adjusted for non-recurring items.
This news marks an earnings surprise of -34.62%. A quarter earlier, Fluor had surprised analysts positively, with earnings of $0.85 per share against an expected $0.68, resulting in a 25% upside.
Across the last four quarters, Fluor met consensus EPS estimates only two times.
The company, which is part of the Zacks Engineering – R&D Services sector, reported revenues of $4.09 billion for the quarter ending September 2024, which missed the Zacks Consensus Estimate by 14.58%. This is a slight increase from revenues of $3.96 billion a year prior. Fluor has not succeeded in exceeding consensus revenue estimates in the past year.
The stock’s immediate price movement, guided by these recent earnings figures and future expectations, will largely depend on management’s forthcoming commentary in the earnings call.
Fluor’s shares have increased about 50.5% since the start of the year, outpacing the S&P 500’s 25.2% gain.
Looking Ahead: What’s Next for Fluor?
Although Fluor has outperformed the market in 2024, investors are curious about the future of the stock.
This question lacks straightforward answers, but a useful approach for investors is examining the company’s earnings outlook. This encompasses current consensus earnings expectations for upcoming quarters and recent changes in those estimates.
Research shows a strong connection between stock movements and earnings estimate revisions. Investors might track these revisions independently or use established tools like the Zacks Rank, known for effectively leveraging earnings estimate revisions.
Before this earnings release, the trend in estimate revisions for Fluor has been mixed. While revisions may shift following this report, the current status reflects a Zacks Rank #3 (Hold). This indicates the shares are anticipated to match market performance in the near term. A comprehensive list of today’s Zacks #1 Rank (Strong Buy) stocks is available.
It will be noteworthy to observe how estimates for the subsequent quarters and current fiscal year evolve shortly. The present consensus EPS estimate stands at $0.89 on revenues of $5.01 billion for the upcoming quarter and $2.88 on $17.76 billion in revenues for the current fiscal year.
Investors should also consider the broader industry outlook, as it can significantly impact stock performance. Within the Zacks Industry Rank, Engineering – R&D Services is currently placed in the bottom 41% of over 250 industries. Research indicates that the upper 50% of Zacks-ranked sectors tend to outperform the lower 50% by more than 2 to 1.
Another industry player, M-tron Industries, Inc. (MPTI), has yet to report for the quarter ending September 2024.
M-tron is projected to announce quarterly earnings of $0.54 per share, representing a year-over-year decline of 5.3%. The consensus EPS estimate for the quarter has remained steady over the last month.
Projected revenues for M-tron are expected to hit $12.2 million, a 12% increase from the previous year’s quarter.
Potential Stock Pick from Zacks’ Research Chief
Among thousands of stocks, five Zacks experts have identified favorites poised for significant growth, with the Director of Research, Sheraz Mian, selecting one that has remarkable upside potential.
This company is catering to millennial and Gen Z consumers, amassing nearly $1 billion in revenue last quarter alone. A recent pullback could present a prime opportunity for investment. While not every top pick succeeds, this one has the potential to eclipse previous Zacks recommendations like Nano-X Imaging, which surged by 129.6% in just over nine months.
Free: Discover Our Top Stock and Four Contenders
For the latest recommendations from Zacks Investment Research, download “5 Stocks Set to Double” at no cost.
Fluor Corporation (FLR): Free Stock Analysis Report
M-tron Industries, Inc. (MPTI): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
