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Will Energy Solutions Benefit Fluor (FLR) in Q2 Earnings?
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Fluor Corporation’s (FLR - Free Report) Energy Solutions segment, accounting for about 43% of first-quarter 2023 total revenues, is expected to have contributed to second-quarter 2023 results on Aug 4, before market open.
Fluor’s stock increased 13.4%, underperforming the Zacks Engineering - R and D Services industry’s 14.7% increase. So far this year, FLR stock declined 10.4% against the industry’s 23.7% growth. The underperformance was mainly due to pressure related to commodity prices. Challenges associated with its legacy infrastructure project, supply chain and labor escalation costs, along with labor availability, are concerns.
Please find a comprehensive overview of the company's anticipated Q2 performance by clicking here.
Image Source: Zacks Investment Research
A Look at Q2 Segmental Performance
Fluor’s Energy Solutions segment is expected to have benefited from the energy transition space. It is important to note that 40% of new awards were energy transition-related in the first quarter of 2023. Demand for all facets of infrastructure for providing carbon-free energy solutions is likely to have benefited this segment in the to-be-reported quarter. Additionally, increased execution activities on refinery and LNG projects in North America, along with contributions from NuScale, are likely to have aided the company’s Energy Solutions segment.
Considering the segment performance, our expectation for this Zacks Rank #3 (Hold) company’s second-quarter segment revenues is pegged at $1.60 billion, up 20.4% year over year. For margin, we expect the Energy Solutions segment operating margin to be 5.3% in the quarter, up from 4.9% a year ago. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apart from the Energy Solutions segment, new cost-plus/low-risk bookings have been driving solid top-line growth for the company.
Within the Urban Solution segment, decarbonization of metal production facilities, copper projects in South America and lithium work in the United States are expected to have benefited Mining & Metals business. Within Advanced Technologies & Life Sciences business, FLR has been a key project delivery partner for many new biopharmaceutical facilities, including both brownfield expansions and new greenfield campus developments.
Apart from substantial involvement in Advanced Technology projects in Asia, FLR has been positioning itself for major semiconductor fabrication ventures in both Idaho and Oregon. Meanwhile, for the infrastructure portfolio, although legacy contracts continue to impact the performance, focus on state DOTs or regional opportunities will benefit the segment’s performance.
We expect Urban Solutions (comprising 32.2% of first-quarter 2023 total revenues) to be $1.21 billion (up 0.1% sequentially), with the operating margin anticipated to be 4.4% in the quarter.
Fluor’s Mission Solutions segment (comprising 17.3% of first-quarter 2023 total revenues) is expected to gain from Fluor’s high-end technical solutions to the United States and other governments. Its nuclear and civil businesses with a differentiated expertise in managing complex national security missions are likely to have benefited the segment. Our model predicts Mission Solutions segment revenues (comprising 17.3% of first-quarter 2023 total revenues) to be $596.7 million, up 9.1% year over year. The operating margin is expected to be 4.7% in the quarter, down from 5.1% a year ago.
Overall Earnings & Revenue Projections
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 36 cents, suggesting 176.9% growth from the prior-year quarter’s reported figure. For quarterly sales, the consensus mark of $3.61 billion suggests growth of 9.5% from the year-earlier quarter’s reported number.
Few Construction Releases so Far
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Earnings beat the consensus estimate for the seventh straight quarter. Revenues, on the other hand, surpassed the mark in three of the trailing seven quarters and missed on other four occasions.
Although KBR’s quarterly earnings were impacted by losses related to convertible notes and a legacy legal matter, the company delivered a strong quarter of financial performance and environmental, social and governance or ESG performance, underpinned by its mission focus and operational discipline.
EMCOR Group, Inc. (EME - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year. Strength across the segments and market helped the company to achieve 11% higher organic revenues.
EMCOR maintained annual revenue guidance in the range of $12- $12.5 billion. EPS is expected to be within $10.75-$11.25, indicating an improvement from the previously expected range of $9.25-$10.00. The effective tax rate is likely to be 27.5-28% for 2023.
RPM International Inc. (RPM - Free Report) reported decent fourth-quarter fiscal 2023 (ended May 31, 2023) results, with earnings and sales beating the Zacks Consensus Estimate. Despite a year-over-year decline in earnings, the company marked its sixth consecutive quarter of record sales.
Although challenging conditions impacted certain end markets, RPM’s adaptability and diverse business model helped it grow. The company benefited from businesses selling engineered solutions for infrastructure and reshoring-related capital projects.
Image: Bigstock
Will Energy Solutions Benefit Fluor (FLR) in Q2 Earnings?
Fluor Corporation’s (FLR - Free Report) Energy Solutions segment, accounting for about 43% of first-quarter 2023 total revenues, is expected to have contributed to second-quarter 2023 results on Aug 4, before market open.
Fluor’s stock increased 13.4%, underperforming the Zacks Engineering - R and D Services industry’s 14.7% increase. So far this year, FLR stock declined 10.4% against the industry’s 23.7% growth. The underperformance was mainly due to pressure related to commodity prices. Challenges associated with its legacy infrastructure project, supply chain and labor escalation costs, along with labor availability, are concerns.
Please find a comprehensive overview of the company's anticipated Q2 performance by clicking here.
Image Source: Zacks Investment Research
A Look at Q2 Segmental Performance
Fluor’s Energy Solutions segment is expected to have benefited from the energy transition space. It is important to note that 40% of new awards were energy transition-related in the first quarter of 2023. Demand for all facets of infrastructure for providing carbon-free energy solutions is likely to have benefited this segment in the to-be-reported quarter. Additionally, increased execution activities on refinery and LNG projects in North America, along with contributions from NuScale, are likely to have aided the company’s Energy Solutions segment.
Considering the segment performance, our expectation for this Zacks Rank #3 (Hold) company’s second-quarter segment revenues is pegged at $1.60 billion, up 20.4% year over year. For margin, we expect the Energy Solutions segment operating margin to be 5.3% in the quarter, up from 4.9% a year ago. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apart from the Energy Solutions segment, new cost-plus/low-risk bookings have been driving solid top-line growth for the company.
Within the Urban Solution segment, decarbonization of metal production facilities, copper projects in South America and lithium work in the United States are expected to have benefited Mining & Metals business. Within Advanced Technologies & Life Sciences business, FLR has been a key project delivery partner for many new biopharmaceutical facilities, including both brownfield expansions and new greenfield campus developments.
Apart from substantial involvement in Advanced Technology projects in Asia, FLR has been positioning itself for major semiconductor fabrication ventures in both Idaho and Oregon. Meanwhile, for the infrastructure portfolio, although legacy contracts continue to impact the performance, focus on state DOTs or regional opportunities will benefit the segment’s performance.
We expect Urban Solutions (comprising 32.2% of first-quarter 2023 total revenues) to be $1.21 billion (up 0.1% sequentially), with the operating margin anticipated to be 4.4% in the quarter.
Fluor’s Mission Solutions segment (comprising 17.3% of first-quarter 2023 total revenues) is expected to gain from Fluor’s high-end technical solutions to the United States and other governments. Its nuclear and civil businesses with a differentiated expertise in managing complex national security missions are likely to have benefited the segment. Our model predicts Mission Solutions segment revenues (comprising 17.3% of first-quarter 2023 total revenues) to be $596.7 million, up 9.1% year over year. The operating margin is expected to be 4.7% in the quarter, down from 5.1% a year ago.
Overall Earnings & Revenue Projections
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 36 cents, suggesting 176.9% growth from the prior-year quarter’s reported figure. For quarterly sales, the consensus mark of $3.61 billion suggests growth of 9.5% from the year-earlier quarter’s reported number.
Few Construction Releases so Far
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Earnings beat the consensus estimate for the seventh straight quarter. Revenues, on the other hand, surpassed the mark in three of the trailing seven quarters and missed on other four occasions.
Although KBR’s quarterly earnings were impacted by losses related to convertible notes and a legacy legal matter, the company delivered a strong quarter of financial performance and environmental, social and governance or ESG performance, underpinned by its mission focus and operational discipline.
EMCOR Group, Inc. (EME - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year. Strength across the segments and market helped the company to achieve 11% higher organic revenues.
EMCOR maintained annual revenue guidance in the range of $12- $12.5 billion. EPS is expected to be within $10.75-$11.25, indicating an improvement from the previously expected range of $9.25-$10.00. The effective tax rate is likely to be 27.5-28% for 2023.
RPM International Inc. (RPM - Free Report) reported decent fourth-quarter fiscal 2023 (ended May 31, 2023) results, with earnings and sales beating the Zacks Consensus Estimate. Despite a year-over-year decline in earnings, the company marked its sixth consecutive quarter of record sales.
Although challenging conditions impacted certain end markets, RPM’s adaptability and diverse business model helped it grow. The company benefited from businesses selling engineered solutions for infrastructure and reshoring-related capital projects.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.