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Fluor Corporation FLR is scheduled to report fourth-quarter 2024 results on Feb. 18, before market open.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
In the last reported quarter, the company’s adjusted earnings per share (EPS) and revenues missed the Zacks Consensus Estimate by 34.6% and 14.6%, respectively. On a year-over-year basis, the top line grew 3.3% while the bottom line tumbled 50%.
This engineering, procurement, construction and maintenance services provider’s earnings topped the consensus mark in two of the trailing four quarters and missed on the remaining two occasions, with a negative average of 0.3%.
Trend in FLR’s Estimates
The Zacks Consensus Estimate for the company’s fourth-quarter EPS has moved south to 78 cents from 79 cents in the past 30 days. The estimated figure indicates 14.7% year-over-year growth from 68 cents.
Fluor Corporation Price and EPS Surprise
Fluor Corporation price-eps-surprise | Fluor Corporation Quote
The consensus estimate for revenues is pegged at $4.72 billion, indicating a rise of 23.6% from $3.82 billion reported in the year-ago quarter.
Factors Likely to Shape Fluor’s Q4 Results
Revenues
Fluor’s top-line performance is expected to have been driven by increased contributions from three of its primary segments, Energy Solutions, Urban Solutions and Mission Solutions. The uptick in the contributions from these segments is likely to have been backed by increased demand for traditional energy, energy transition and low-carbon power projects along with engineering, procurement, and construction and defense projects. Continued strength in environmental remediation, national security and nuclear fuel markets is also likely to have been incremental for the quarter’s uptrend.
Although the company faces risks from potential project delays and cancellations, the reduced proportion of this headwind is likely to have been beneficial alongside new award wins.
Segment-wise, the Zacks Consensus Estimate for Energy Solutions revenues (comprising 34.9% of third-quarter 2024 total revenues) is currently pegged at $1.64 billion, indicating an increase from $1.42 billion in the year-ago period. The consensus mark for Urban Solutions revenues (comprising 47.2% of third-quarter total revenues) of $2.06 billion reflects growth from $1.42 billion a year ago. The consensus mark for Mission Solutions segment revenues (comprising 15.5% of third-quarter total revenues) of $711 million depicts year-over-year growth from $646 million.
The Other segment (comprising 2.4% of third-quarter total revenues) is expected to register revenues of $315 million, down from $332 reported in the prior year.
Notably, Fluor’s effective execution of the "Building a Better Future" strategy and its diversified presence in the market are likely to have supported its prospects amid the lingering macro uncertainties.
Margins
Thanks to Fluor’s strategy of ensuring cost-plus/low-risk bookings and increased execution activities with reduced project delays and cancellations, its bottom line is likely to have grown during the quarter on a year-over-year basis. Although higher costs and expenses, foreign currency fluctuations and other macro risks are expected to have been headwinds to the margins, the tailwinds mentioned above are likely to have aided the expansion this quarter.
The Zacks Consensus Estimate for the Energy Solutions and Mission Solutions segments' profit is pegged at $52 million and $50 million, indicating year-over-year growth from $26 million and $31 million, respectively. The Other segment is expected to report a loss of $25 million, which compares with a loss of $119 million reported in the year-ago quarter.
On the contrary, the consensus mark for Urban Solutions’ segment profit is pegged at $70 million, down year over year from $147 million.