Fluor’s (FLR) Cryptocurrency Plummets Following Q1 Earnings and Revenue Shortfall

• Fluor Corporation (FLR) reported lower than expected earnings and revenues for the first quarter of 2024, despite an increase in earnings year-over-year.
• The company’s shares declined by 6.4% following the announcement, with lower contributions from the Energy and Mission Solutions segments contributing to the downturn.
• However, solid contributions from Urban Solutions and growth in new awards and backlog value indicate potential for future growth.

Fluor Corporation reports lower than expected Q1 2024 earnings and revenues, despite year-over-year increase in earnings. Shares decline, but future growth prospects remain.

Q1 2024 Earnings Report

Fluor Corporation reported adjusted earnings per share (EPS) of 47 cents, missing the Zacks Consensus Estimate of 54 cents by 13%. This figure, however, increased from EPS of 28 cents a year ago. Quarterly revenues of $3.73 billion also missed the consensus mark of $3.94 billion by 5.2%, marking a 0.5% drop from the year-ago quarter’s level of $3.75 billion.

Segmental Performance

The Energy Solutions segment saw a year-over-year decline in revenues of 11.2% to $1.43 billion in the first quarter. The Urban Solutions segment, on the other hand, reported revenues of $1.48 billion, marking a 22.4% increase on a year-over-year basis. The Mission Solutions segment reported revenues of $601 million, a 7.4% decrease from the previous year. The Other segment, which includes NuScale, generated revenues of $222 million for the quarter, down 21.6% from the year-ago period.

Future Outlook

Despite the lower than expected Q1 2024 results, Fluor Corporation retains its 2024 guidance. The company expects adjusted EPS in the range of $2.50-$3.00 and anticipates revenues to grow approximately 15% year over year. It also projects the margin percentage for its segments, including Energy Solutions, Urban Solutions and Mission Solutions, to be 5%, within 4% and 6%, respectively.

Conclusion

While Fluor Corporation’s Q1 2024 results were lower than expected, the company’s growth in new awards and backlog value, as well as solid contributions from the Urban Solutions segment, suggest potential for future growth. The company’s retained 2024 guidance also indicates optimism for the coming year.