Fluor Corporation FLR is set to announce its fourth-quarter 2023 results on February 20, 2023, before the market opens.
Strong Performance in Previous Quarter
In the previous quarter, Fluor’s adjusted earnings and revenues surpassed the Zacks Consensus Estimate by substantial margins of 85.5% and 3.2%, respectively. The engineering, procurement, construction, and maintenance services provider displayed a significant increase in adjusted earnings per share (EPS), reaching $1.02, a substantial rise from 7 cents in the previous year. Quarterly revenues also experienced a healthy uptick, reaching $3.96 billion, a 9.7% increase from the year-ago level.
Estimate Revision Trends
The Zacks Consensus Estimate for the upcoming quarter’s EPS has remained stable at 56 cents for the past 60 days. This figure indicates a promising 30.2% growth compared to the year-ago EPS of 43 cents.
Factors Driving Performance
The company is expected to witness an upsurge in its quarterly performance, attributed to recent cost-plus/low-risk bookings and the commitment to its “Building a Better Future” strategy. With a diversified market presence and robust demand for its services, particularly from sectors like chemicals, fuel production, mining, and metals, Fluor’s quarterly demand is primed for growth.
Fulfilling the increasing global energy demand, Fluor’s successful execution of significant Energy Solutions projects and continued advancements in its legacy portfolio projects are bolstering its positive outlook. Strong backlog performance, influenced by a few remaining legacy projects, also contributes to the company’s favorable position.
Segment-wise Expectations
Projections for Energy Solutions revenues, attributing to 39.2% of third-quarter 2023 total revenues, foresee a year-over-year increase of 0.7%, expected to reach $1.79 billion. Urban Solutions revenues, constituting 36.1% of third-quarter 2023 total revenues, are expected to exhibit a substantial 25.8% growth year over year, reaching $1.23 billion. Mission Solutions segment revenues, contributing 16.5% of the third-quarter 2023 total revenues, are anticipated to rise by 16.3% year over year, reaching $592 million. Lastly, the Other segment, accounting for 8.2% of third-quarter revenues, is expected to record revenues of $592 million, marking a 16.3% increase year over year.
Analyst Predictions
According to our analysts, there is no definitive prediction of Fluor exceeding earnings expectations for the upcoming quarter. Meeting the criteria for an earnings beat, a stock must exhibit a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). Unfortunately, based on these criteria, Fluor does not meet the necessary requirements.
Earnings ESP: Fluor currently has an Earnings ESP of 0.00%, indicating the lack of a meaningful surprise factor. Our Earnings ESP Filter allows you to identify the best stocks to buy or sell before their earnings reports are disclosed.
Zacks Rank: FLR presently holds a Zacks Rank #3.
Other Companies in the Construction Sector
Looking at other companies in the Construction sector, there are select entities poised to exceed earnings projections for their respective quarters.
JELD-WEN Holding, Inc. JELD exhibits an Earnings ESP of +10.90% and currently holds a Zacks Rank #3. Click here to view the full list of industry-leading Zacks #1 Rank stocks.
Floor & Decor Holdings, Inc. FND displays an Earnings ESP of +6.74% and a Zacks Rank #2.
Vulcan Materials Company VMC has an Earnings ESP of +3.08% and holds a Zacks Rank #3.
For more comprehensive details on upcoming earnings announcements, refer to the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
