Fluor Earnings: Boosts Topline Growth

S&P 500 (NYSE:SPY) component Fluor Corporation (NYSE:FLR) reported higher profit for the first quarter as revenue showed growth. 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 First Quarter

Results: Net income for Fluor Corporation rose to $154.9 million (91 cents per share) vs. $139.7 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 10.9% from the year-earlier quarter.

Revenue: Rose 24.4% to $6.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fluor Corporation beat the mean analyst estimate of 87 cents per share. Analysts were expecting revenue of $6.3 billion.

Quoting Management: “Fluor’s strong international presence helped drive new awards of $8.4 billion in the first quarter, including sizable awards in oil and gas production, refining and mining. I’m particularly pleased with the award of several key energy projects which will support growth in our Oil & Gas segment,” said Chairman and Chief Executive Officer, David Seaton. “Looking ahead, we see very good growth opportunities across our diversified global business segments.”

Key Stats:

Gross margin shrank one percentage point to 4.4%. The contraction appeared to be driven by increased costs, which rose 25.6% from the year earlier quarter while revenue rose 24.4%.

Revenue has risen the past four quarters. Revenue increased 18.7% to $6.25 billion in the fourth quarter of the last fiscal year. The figure rose 9.5% in the third quarter of the last fiscal year from the year earlier and climbed 17.1% in the second quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 90 cents versus a mean estimate of net income of 82 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 95 cents a share to 93 cents over the last ninety days. The average estimate for the fiscal year is $3.75 per share, down from $3.76 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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