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Fluor's (FLR) Q1 Earnings Miss, Revenues Top, Shares Down
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Fluor Corporation (FLR - Free Report) reported mixed results for first-quarter 2023. Earnings missed the Zacks Consensus Estimate but increased from the previous year. Revenues surpassed the consensus mark and grew from the year-ago level.
The company’s underlying performance continues to be impacted by a few remaining legacy projects.
The company’s shares declined 1.5% on May 5 in the pre-market trading session.
Inside the Headlines
Fluor reported adjusted earnings of 28 cents per share, which lagged the consensus estimate of 38 cents by 26.3%. The reported figure rose 75% from 16 cents a year ago.
Quarterly revenues of $3,752 million topped the consensus mark of $3,531 million by 6.3%. The reported figure increased 20% from the year-ago level. The upside was primarily attributable to contributions from all its segments.
Overall, the company’s segment loss was $15 million against the year-ago profit level of $115 million. Segment margin was negative 0.4% versus 3.7% in the year-ago period. Adjusted EBITDA for the reported period was $71 million, down from $90 million in the prior-year period.
Fluor's total new awards for the quarter came in at $3.23 billion compared with $1.93 billion in the year-ago period. The consolidated backlog at the first-quarter end came in at $25.62 billion, down from $26.05 billion at 2022-end but up from $19.3 billion a year ago.
Fluor Corporation Price, Consensus and EPS Surprise
The Energy Solutions segment’s revenues grew 37.3% year over year to $1,612 million in the first quarter. The segment margin expanded 90 basis points (bps) to 5.5% from a year ago. New awards came in at $712 million in the quarter, up from $682 million in the first quarter of 2022. The backlog at quarter-end was $8.56 billion compared with $9.13 billion at 2022-end.
Revenues in the Urban Solutions segment totaled $1,208 million, up 13.9% on a year-over-year basis. The segment margin was negative 1.7% against positive 1.6% a year ago. New awards came in at $1,775 million for the quarter, significantly up from $598 million a year ago. The backlog at quarter-end was $10.66 billion, up from $9.9 billion at 2022-end.
Revenues in the Mission Solutions segment totaled $649 million, up 9.4% on a year-over-year basis. The segment margin declined to 1.1% from 9.8% in the previous year. It booked new awards worth $331 million, down from $386 million a year ago. The backlog at quarter-end was $5.24 billion compared with $5.67 billion at 2022-end.
The Other segment, which comprises NuScale, generated revenues of $283 million for the quarter, down 3.7% from the year-ago period. This segment generated a loss of $90 million versus $14 million a year ago. It booked new awards worth $416 million, up from the year-ago level of $260 million. The backlog at quarter-end was $1.17 billion compared with $1.35 billion at 2022-end.
Guidance
For 2023, Fluor still expects adjusted earnings per share in the range of $1.50-$1.90 per share. It expects adjusted EBITDA in the range of $450-$600 million. The consensus mark for adjusted earnings is currently pegged at $1.69 per share.
For 2026, it anticipates adjusted earnings of $3.10-$3.60 per share and adjusted EBITDA in the range of $800-950 million.
KBR, Inc. (KBR - Free Report) reported strong results for first-quarter 2023, wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
KBR’s top and bottom lines gained on strong underlying growth and margin expansion as well as excellent bookings in the reported quarter.
Masco Corporation (MAS - Free Report) reported better-than-expected results for first-quarter 2023. The top and bottom lines surpassed the Zacks Consensus Estimate. The company has been benefiting from strong pricing actions and operational improvements.
On the other hand, adjusted earnings and net sales declined on a year-over-year basis due to supply-chain challenges and inflation headwinds.
United Rentals, Inc. (URI - Free Report) reported first-quarter 2023 results. Its earnings missed the Zacks Consensus Estimate but revenues beat the same. Nonetheless, on a year-over-year basis, URI’s earnings and revenues increased, courtesy of sustained demand in its end markets and the strength of its core rental business.
URI also reaffirmed its 2023 guidance, given broad-based end-market activity, contractor backlogs, customer sentiment and solid visibility. Also, it unveiled a quarterly dividend of $1.48 per share, with an annualized yield of approximately 0.4%. The company also repurchased $250 million of stock under its existing $1.25 billion share repurchase program.
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Fluor's (FLR) Q1 Earnings Miss, Revenues Top, Shares Down
Fluor Corporation (FLR - Free Report) reported mixed results for first-quarter 2023. Earnings missed the Zacks Consensus Estimate but increased from the previous year. Revenues surpassed the consensus mark and grew from the year-ago level.
The company’s underlying performance continues to be impacted by a few remaining legacy projects.
The company’s shares declined 1.5% on May 5 in the pre-market trading session.
Inside the Headlines
Fluor reported adjusted earnings of 28 cents per share, which lagged the consensus estimate of 38 cents by 26.3%. The reported figure rose 75% from 16 cents a year ago.
Quarterly revenues of $3,752 million topped the consensus mark of $3,531 million by 6.3%. The reported figure increased 20% from the year-ago level. The upside was primarily attributable to contributions from all its segments.
Overall, the company’s segment loss was $15 million against the year-ago profit level of $115 million. Segment margin was negative 0.4% versus 3.7% in the year-ago period. Adjusted EBITDA for the reported period was $71 million, down from $90 million in the prior-year period.
Fluor's total new awards for the quarter came in at $3.23 billion compared with $1.93 billion in the year-ago period. The consolidated backlog at the first-quarter end came in at $25.62 billion, down from $26.05 billion at 2022-end but up from $19.3 billion a year ago.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation price-consensus-eps-surprise-chart | Fluor Corporation Quote
Segmental Discussion
The Energy Solutions segment’s revenues grew 37.3% year over year to $1,612 million in the first quarter. The segment margin expanded 90 basis points (bps) to 5.5% from a year ago. New awards came in at $712 million in the quarter, up from $682 million in the first quarter of 2022. The backlog at quarter-end was $8.56 billion compared with $9.13 billion at 2022-end.
Revenues in the Urban Solutions segment totaled $1,208 million, up 13.9% on a year-over-year basis. The segment margin was negative 1.7% against positive 1.6% a year ago. New awards came in at $1,775 million for the quarter, significantly up from $598 million a year ago. The backlog at quarter-end was $10.66 billion, up from $9.9 billion at 2022-end.
Revenues in the Mission Solutions segment totaled $649 million, up 9.4% on a year-over-year basis. The segment margin declined to 1.1% from 9.8% in the previous year. It booked new awards worth $331 million, down from $386 million a year ago. The backlog at quarter-end was $5.24 billion compared with $5.67 billion at 2022-end.
The Other segment, which comprises NuScale, generated revenues of $283 million for the quarter, down 3.7% from the year-ago period. This segment generated a loss of $90 million versus $14 million a year ago. It booked new awards worth $416 million, up from the year-ago level of $260 million. The backlog at quarter-end was $1.17 billion compared with $1.35 billion at 2022-end.
Guidance
For 2023, Fluor still expects adjusted earnings per share in the range of $1.50-$1.90 per share. It expects adjusted EBITDA in the range of $450-$600 million. The consensus mark for adjusted earnings is currently pegged at $1.69 per share.
For 2026, it anticipates adjusted earnings of $3.10-$3.60 per share and adjusted EBITDA in the range of $800-950 million.
Zacks Rank & Recent Construction Releases
Fluor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KBR, Inc. (KBR - Free Report) reported strong results for first-quarter 2023, wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
KBR’s top and bottom lines gained on strong underlying growth and margin expansion as well as excellent bookings in the reported quarter.
Masco Corporation (MAS - Free Report) reported better-than-expected results for first-quarter 2023. The top and bottom lines surpassed the Zacks Consensus Estimate. The company has been benefiting from strong pricing actions and operational improvements.
On the other hand, adjusted earnings and net sales declined on a year-over-year basis due to supply-chain challenges and inflation headwinds.
United Rentals, Inc. (URI - Free Report) reported first-quarter 2023 results. Its earnings missed the Zacks Consensus Estimate but revenues beat the same. Nonetheless, on a year-over-year basis, URI’s earnings and revenues increased, courtesy of sustained demand in its end markets and the strength of its core rental business.
URI also reaffirmed its 2023 guidance, given broad-based end-market activity, contractor backlogs, customer sentiment and solid visibility. Also, it unveiled a quarterly dividend of $1.48 per share, with an annualized yield of approximately 0.4%. The company also repurchased $250 million of stock under its existing $1.25 billion share repurchase program.