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Fluor's (FLR) Q2 Earnings Beat, Revenues Miss Estimates
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Fluor Corporation (FLR - Free Report) reported mixed results for second-quarter 2024, with earnings missing the Zacks Consensus Estimate but revenues beating the same. On a year-over-year basis, both earnings and revenues increased, given solid contributions from the Urban Solutions segment.
The company’s shares inched up 0.5% on Aug 2 following the release.
In the second half of 2024, FLR will focus on deploying resources to its high-value project backlog and positioning the company to return capital to shareholders.
Inside the Headlines
Fluor reported adjusted earnings per share (EPS) of 85 cents, which beat the Zacks Consensus Estimate of 68 cents by 25%. The reported figure increased 11.8% from an EPS of 76 cents a year ago.
Quarterly revenues of $4.23 billion missed the consensus mark of $4.35 billion by 2.9%. The figure grew 7.3% from the year-ago quarter’s level of $3.94 billion.
The company’s segment profit was $194 million, up from $191 million a year ago. The segment margin was 4.6%, down from 4.8% in the year-ago period. Adjusted EBITDA in the reported period was $165 million, down from $181 million in the prior-year period.
Fluor's total new awards in the quarter were $3.1 billion compared with $3.71 billion in the year-ago period. The consolidated backlog at the second-quarter end was $32.3 billion, up from $29.4 billion a year ago.
Fluor Corporation Price, Consensus and EPS Surprise
The Energy Solutions segment’s revenues declined 7.3% year over year to $1.6 billion in the second quarter. The segment’s margin was 4.7% in the quarter, down from 5.2% a year ago. Results of the quarter reflect several large projects in the late stages of execution. New awards were $582 million, down from $753 million a year ago. The backlog at the quarter-end was $8.53 billion, up from $7.65 billion a year ago.
Revenues in the Urban Solutions segment totaled $1.83 billion, up 52.3% on a year-over-year basis primarily due to increased execution activities on several recently awarded projects. The segment’s margin was 5.7% in the quarter, down from 6.3% a year ago. New awards were $2.42 billion in the quarter, up from $2.28 billion a year ago. The backlog at the quarter-end was $19.6 billion, up from $11.7 billion a year ago.
Revenues in the Mission Solutions segment totaled $704 million, almost on par with the year-ago level of $705 million. The segment’s margin improved 10 basis points (bps) to 5.8% from the previous year’s tally. During the quarter, Mission Solutions substantially completed its remaining legacy project, F.E. Warren. It booked new awards worth $63 million, down from $339 million a year ago. The backlog at the quarter-end was $3.78 billion, down from $4.9 billion a year ago.
The Other segment, which comprises Stork and Fluor’s 51% ownership in NuScale, generated revenues of $97 million in the quarter, down from $311 million in the year-ago period. The segment generated a loss of $27 million compared with a $14 million loss a year ago. It booked new awards worth $37 million, down from the year-ago level of $336 million. The backlog at the quarter-end was $427 million, down from $1.24 billion a year ago.
Updated 2024 Guidance
For 2024, Fluor still expects adjusted EPS in the range of $2.50-$3.00.
The company narrowed its adjusted EBITDA guidance to $625-$675 million from $600-$700 million expected earlier. The guidance reflects strong performance in the non-legacy portfolio, progress in entitlement negotiations, and significant opportunities in Urban and Energy Solutions.
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.
Armstrong World Industries, Inc. (AWI - Free Report) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.
AWI’s growth trend was backed by solid contributions from the Mineral Fiber as well as Architectural Specialties segments. Growth was attributable to the increase in average unit value and volume. Also, contributions from recent acquisitions aided the uptrend.
Gibraltar Industries, Inc. (ROCK - Free Report) reported strong second-quarter 2024 earnings despite top-line woes. Although both earnings and net sales missed the Zacks Consensus Estimate, the bottom line strengthened on a year-over-year basis.
ROCK has slightly reduced its net sales outlook for 2024 to reflect recent slower market conditions in both Residential and Renewables end markets, partially offset by strength in both Agtech and Infrastructure. Nonetheless, it remains focused on driving participation gains across the segments, with operational improvements to support solid second-half and full-year margin expansion and cash flow growth.
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Fluor's (FLR) Q2 Earnings Beat, Revenues Miss Estimates
Fluor Corporation (FLR - Free Report) reported mixed results for second-quarter 2024, with earnings missing the Zacks Consensus Estimate but revenues beating the same. On a year-over-year basis, both earnings and revenues increased, given solid contributions from the Urban Solutions segment.
The company’s shares inched up 0.5% on Aug 2 following the release.
In the second half of 2024, FLR will focus on deploying resources to its high-value project backlog and positioning the company to return capital to shareholders.
Inside the Headlines
Fluor reported adjusted earnings per share (EPS) of 85 cents, which beat the Zacks Consensus Estimate of 68 cents by 25%. The reported figure increased 11.8% from an EPS of 76 cents a year ago.
Quarterly revenues of $4.23 billion missed the consensus mark of $4.35 billion by 2.9%. The figure grew 7.3% from the year-ago quarter’s level of $3.94 billion.
The company’s segment profit was $194 million, up from $191 million a year ago. The segment margin was 4.6%, down from 4.8% in the year-ago period. Adjusted EBITDA in the reported period was $165 million, down from $181 million in the prior-year period.
Fluor's total new awards in the quarter were $3.1 billion compared with $3.71 billion in the year-ago period. The consolidated backlog at the second-quarter end was $32.3 billion, up from $29.4 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 declined 7.3% year over year to $1.6 billion in the second quarter. The segment’s margin was 4.7% in the quarter, down from 5.2% a year ago. Results of the quarter reflect several large projects in the late stages of execution. New awards were $582 million, down from $753 million a year ago. The backlog at the quarter-end was $8.53 billion, up from $7.65 billion a year ago.
Revenues in the Urban Solutions segment totaled $1.83 billion, up 52.3% on a year-over-year basis primarily due to increased execution activities on several recently awarded projects. The segment’s margin was 5.7% in the quarter, down from 6.3% a year ago. New awards were $2.42 billion in the quarter, up from $2.28 billion a year ago. The backlog at the quarter-end was $19.6 billion, up from $11.7 billion a year ago.
Revenues in the Mission Solutions segment totaled $704 million, almost on par with the year-ago level of $705 million. The segment’s margin improved 10 basis points (bps) to 5.8% from the previous year’s tally. During the quarter, Mission Solutions substantially completed its remaining legacy project, F.E. Warren. It booked new awards worth $63 million, down from $339 million a year ago. The backlog at the quarter-end was $3.78 billion, down from $4.9 billion a year ago.
The Other segment, which comprises Stork and Fluor’s 51% ownership in NuScale, generated revenues of $97 million in the quarter, down from $311 million in the year-ago period. The segment generated a loss of $27 million compared with a $14 million loss a year ago. It booked new awards worth $37 million, down from the year-ago level of $336 million. The backlog at the quarter-end was $427 million, down from $1.24 billion a year ago.
Updated 2024 Guidance
For 2024, Fluor still expects adjusted EPS in the range of $2.50-$3.00.
The company narrowed its adjusted EBITDA guidance to $625-$675 million from $600-$700 million expected earlier. The guidance reflects strong performance in the non-legacy portfolio, progress in entitlement negotiations, and significant opportunities in Urban and Energy Solutions.
Zacks Rank & Recent Construction Releases
Fluor currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.
Armstrong World Industries, Inc. (AWI - Free Report) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.
AWI’s growth trend was backed by solid contributions from the Mineral Fiber as well as Architectural Specialties segments. Growth was attributable to the increase in average unit value and volume. Also, contributions from recent acquisitions aided the uptrend.
Gibraltar Industries, Inc. (ROCK - Free Report) reported strong second-quarter 2024 earnings despite top-line woes. Although both earnings and net sales missed the Zacks Consensus Estimate, the bottom line strengthened on a year-over-year basis.
ROCK has slightly reduced its net sales outlook for 2024 to reflect recent slower market conditions in both Residential and Renewables end markets, partially offset by strength in both Agtech and Infrastructure. Nonetheless, it remains focused on driving participation gains across the segments, with operational improvements to support solid second-half and full-year margin expansion and cash flow growth.