Fluor Corp Earnings Cheat Sheet: Swinging to a Profit

S&P 500 (NYSE:SPY) component Fluor Corporation (NYSE:FLR) reported its results for the third quarter. Fluor Corporation provides professional services and project management in the fields of procurement, engineering, construction and maintenance.

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Fluor Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $135.4 million (78 cents per diluted share) in the quarter. Fluor Corporation had a net loss of $53.6 million or a loss 30 cents per share in the year earlier quarter.

Revenue: Rose 9.5% to $6.04 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FLR fell short of the mean analyst estimate of 86 cents per share. It fell short of the average revenue estimate of $6.28 billion.

Quoting Management: “We are encouraged that our strong market position has once again enabled us to book substantial new work and grow our backlog,” said Chief Executive Officer David Seaton. “While there are continuing concerns about the global macroeconomic environment, we have not seen any material change in our clients’ capital spending outlook to date.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 13 cents, and in the first quarter, it was ahead by 2 cents.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 17.1% to $6.03 billion while the figure rose 2.8% in the first quarter from the year earlier.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 3.2 percentage points to 4.3% from the quarter earlier quarter. In the first quarter, the figure rose 0.4 percentage point to 5.1% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 86 cents per share to 82 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past three months, the average estimate for the fiscal year has climbed from $3.32 per to share to $3.40.

Competitors to Watch: Jacobs Engineering Group Inc. (NYSE:JEC), URS Corporation (NYSE:URS), KBR, Inc. (NYSE:KBR), The Shaw Group Inc. (NYSE:SHAW), Tutor Perini Corporation (NYSE:TPC), Quanta Services, Inc. (NYSE:PWR), Granite Construction Inc. (NYSE:GVA), EMCOR Group, Inc. (NYSE:EME), Michael Baker Corporation (AMEX:BKR), and Babcock & Wilcox Co (NYSE:BWC).

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(Source: Xignite Financials)