Fluor Corp. (FLR) Downgraded to “Sell” at Zacks Investment Research
According to Zacks, “Fluor has had a dismal earnings surprise history, with negative surprises in three of the four trailing quarters. The company’s top line growth has suffered lately, owing to reduced contribution from its Energy, Chemicals and Mining segment. Softness in commodity prices coupled with a dismal outlook for the energy and mining markets continue to pose threats to the company’s operations. The company expects slow recovery in the global economy, as customers continue to reduce capital investment budgets and delay final investment decisions, which could impact Fluor’s performance adversely. Also, Fluor faces intense competition in the global engineering, procurement and construction industry, which can pressurize its contract prices and profit margins. However, Fluor’s robust backlog level, with lucrative award wins in the Government and Infrastructure business lines, are likely to act as primary growth drivers, going forward.”
Other equities research analysts have also issued reports about the stock. Credit Suisse Group AG set a $59.00 price objective on shares of Fluor Corp. and gave the stock a buy rating in a research report on Wednesday, August 31st. DA Davidson reissued a buy rating on shares of Fluor Corp. in a research note on Tuesday, August 16th. Janney Montgomery Scott reissued a buy rating on shares of Fluor Corp. in a research note on Tuesday, August 16th. MKM Partners set a $52.00 target price on shares of Fluor Corp. and gave the company a hold rating in a research note on Friday, August 5th. Finally, Bank of America Corp. reissued a sell rating and issued a $50.00 target price on shares of Fluor Corp. in a research note on Friday, August 5th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have issued a buy rating to the company. Fluor Corp. presently has a consensus rating of Hold and an average target price of $53.00.
Fluor Corp. (NYSE:FLR) opened at 51.33 on Wednesday. Fluor Corp. has a 1-year low of $39.48 and a 1-year high of $55.69. The stock has a 50 day moving average of $50.93 and a 200 day moving average of $51.93. The stock has a market cap of $7.15 billion, a price-to-earnings ratio of 22.45 and a beta of 1.74.
Fluor Corp. (NYSE:FLR) last released its quarterly earnings data on Thursday, August 4th. The company reported $0.72 EPS for the quarter, missing the consensus estimate of $0.88 by $0.16. Fluor Corp. had a return on equity of 15.45% and a net margin of 1.81%. The business earned $4.86 billion during the quarter, compared to analysts’ expectations of $4.73 billion. During the same quarter in the prior year, the firm earned $1.00 earnings per share. Fluor Corp.’s quarterly revenue was up 1.0% on a year-over-year basis. Equities analysts expect that Fluor Corp. will post $3.25 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 4th. Stockholders of record on Friday, September 2nd were issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date of this dividend was Wednesday, August 31st. Fluor Corp.’s dividend payout ratio (DPR) is 37.00%.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Sumitomo Mitsui Asset Management Company LTD raised its position in shares of Fluor Corp. by 0.3% in the second quarter. Sumitomo Mitsui Asset Management Company LTD now owns 11,059 shares of the company’s stock worth $544,000 after buying an additional 30 shares during the period. IBM Retirement Fund raised its position in shares of Fluor Corp. by 0.3% in the second quarter. IBM Retirement Fund now owns 14,083 shares of the company’s stock worth $694,000 after buying an additional 36 shares during the period. Wesbanco Bank Inc. raised its position in shares of Fluor Corp. by 1.7% in the second quarter. Wesbanco Bank Inc. now owns 4,712 shares of the company’s stock worth $232,000 after buying an additional 78 shares during the period. Wedbush Securities Inc. raised its position in shares of Fluor Corp. by 2.0% in the second quarter. Wedbush Securities Inc. now owns 4,464 shares of the company’s stock worth $220,000 after buying an additional 88 shares during the period. Finally, Cullinan Associates Inc. raised its position in shares of Fluor Corp. by 0.5% in the first quarter. Cullinan Associates Inc. now owns 19,000 shares of the company’s stock worth $1,020,000 after buying an additional 100 shares during the period. 84.35% of the stock is currently owned by institutional investors.
Fluor Corp. Company Profile
Fluor Corporation (Fluor) is a holding company. The Company is a professional services company. The Company provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services. It operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services and Power.
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