Why Is Engineering And Construction Company Fluor Stock Trading Lower Today?
Portfolio Pulse from Akanksha Bakshi
Fluor Corp (NYSE:FLR) reported a Q4 fiscal 2023 revenue of $3.82 billion, missing the consensus of $4.11 billion, with a net loss of $21 million compared to net earnings of $9 million a year ago. Despite this, adjusted EPS improved to $0.68, beating the consensus of $0.57. The company saw a total new awards of $7.6 billion, up from $4.6 billion a year ago, and expects improved cash flow conversion in 2024 with adjusted EBITDA of $600 million to $700 million and adjusted EPS of $2.50 to $3.00. FLR shares traded lower by 10.46% at $37.73.
February 20, 2024 | 4:47 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Fluor Corp reported lower than expected Q4 revenue and a net loss, but beat adjusted EPS estimates. Despite a significant increase in new awards and optimistic future earnings guidance, shares fell by 10.46%.
The immediate negative reaction in FLR's stock price is likely due to the reported revenue miss and net loss for Q4 fiscal 2023. Despite the positive aspects such as the beat on adjusted EPS and the significant increase in new awards, the short-term impact is negative due to the weight investors place on revenue figures and profitability. However, the optimistic guidance for 2024 and beyond may mitigate some of the negative sentiment in the longer term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100