Why Is Engineering Company Fluor's Stock Falling Today?
Portfolio Pulse from Akanksha Bakshi
Fluor Corp (NYSE:FLR) reported a slight revenue decline in Q1 fiscal 2024, missing consensus estimates with $3.734 billion versus the expected $3.997 billion. Despite the revenue miss, the company saw an improvement in adjusted EPS to $0.47 from $0.28 year-over-year, although it still fell short of the consensus of $0.54. Segment profits turned positive to $118 million from a loss of $15 million a year ago, and net earnings improved significantly to $59 million from a loss of $107 million in the same quarter last year. The company also reported a substantial increase in new awards and a 27.8% year-over-year increase in its backlog. Fluor reaffirmed its 2024 outlook, expecting adjusted EBITDA of $600 million to $700 million and adjusted EPS of $2.50 to $3.00. Despite these positive indicators, FLR shares dropped by 5.06% to $39.15.
May 03, 2024 | 2:39 pm
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NEGATIVE IMPACT
Fluor Corp reported a minor revenue decline and an adjusted EPS below consensus in Q1 fiscal 2024, but showed significant improvement in segment profit and net earnings. The company also saw a substantial increase in new awards and backlog, reaffirming its 2024 outlook.
The short-term negative impact on FLR's stock price is likely due to the revenue miss and adjusted EPS falling short of consensus estimates, overshadowing the positive developments in segment profit, net earnings, and backlog growth. The market's reaction reflects concerns over the revenue decline and earnings miss, despite the company's positive outlook and substantial increase in new awards.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100