Back to top

Image: Bigstock

Fluor Gears Up to Report Q3 Earnings: Things to Keep in Mind

Read MoreHide Full Article

Fluor Corporation (FLR - Free Report) is scheduled to report third-quarter 2024 results on Nov. 8, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings per share (EPS) beat the Zacks Consensus Estimate by 25% but net sales missed the same by 2.9%. Its EPS increased 11.8% and net sales grew 7.3% from the year-ago period, given solid contributions from the Urban Solutions segment.

This engineering, procurement, construction and maintenance services provider’s EPS topped the consensus mark in three of the trailing four quarters and missed once, with an average of 29.7%.

Trend in Estimates

The Zacks Consensus Estimate for FLR’s third-quarter EPS is pegged at 78 cents, which has remained stable in the past 60 days. This suggests a decline of 23.5% from $1.02 reported a year ago.

Fluor Corporation Price and EPS Surprise

Fluor Corporation Price and EPS Surprise

Fluor Corporation price-eps-surprise | Fluor Corporation Quote

The consensus estimate for revenues is pegged at $4.76 billion, indicating a rise of 20.1% from $3.96 billion in the year-ago quarter.

Factors to Note

The company is poised to see a boost in its quarterly revenues, thanks to its cost-plus/low-risk bookings, its dedication to "Building a Better Future" strategy, and its diversified presence in the market. Robust demand for its services, mostly from Urban Solutions, is likely to have bolstered the company's quarterly demand.

Furthermore, the company is anticipated to benefit from the increasing global energy demand. Fluor’s successful execution of significant Energy Solutions projects and continued advancements in its legacy portfolio projects further enhance its positive outlook.

The Zacks Consensus Estimate for backlog is currently pegged at $32.92 billion, indicating an increase from $26 billion in the year-ago period.

Segment-wise, the Zacks Consensus Estimate for Energy Solutions revenues (comprising 37.7% of second-quarter total revenues) is currently pegged at $1.69 billion, indicating an increase from $1.55 billion in the year-ago period.

The consensus mark for Urban Solutions revenues (comprising 43.3% of second-quarter total revenues) of $2.08 billion reflects growth from $1.43 billion a year ago.

The consensus mark for Mission Solutions segment revenues (comprising 16.7% of third-quarter 2023 total revenues) of $707 million depicts year-over-year growth from $655 million.

Other segment (comprising 2.3% of third-quarter revenues) is expected to register revenues of $318 million, down from $324 reported in prior year.

From the margin perspective, higher costs and expenses, lower contributions from some large projects and intense competition are expected to have weighed on the company’s bottom line.

The Zacks Consensus Estimate for Urban Solutions’ segment profit is likely to increase 25.8% year over year, backed by increased execution activities on multiple advanced technology and life sciences projects.

However, the Zacks Consensus Estimate for Energy Solutions, Mission Solutions and Other segments are likely to decline 54.2%, 15.8% and 400%, respectively.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Fluor this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

Earnings ESP: Fluor has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FLR currently carries a Zacks Rank #3.

A Stock With Favorable Combination

Here is a company in the Zacks Construction sector, which, according to our model, has the right combination of elements to beat on earnings in its respective quarters to be reported.

Toll Brothers, Inc. (TOL - Free Report) currently has an Earnings ESP of +2.35% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.


TOL’s earnings for the to-be-reported quarter are expected to increase 4.9%. The company reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Peer Releases

KBR, Inc. (KBR - Free Report) reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

The quarter’s results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. (PWR - Free Report) reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

Published in