Fluor (NYSE:FLR) Shares Gap Down After Earnings Miss

Key Points

• Fluor shares gapped down after the quarter as the company reported an EPS miss of $0.14 versus $0.66 expected; the stock opened at $46.15 after closing at $51.08 and last traded around $44.83 on heavy volume.
• Revenue came in at $3.66 billion versus $3.89 billion expected (down 8% year-over-year), leaving Fluor with a negative net margin of -0.34% for the quarter.
• Analyst sentiment is mixed—four Buys, three Holds and one Sell with an average rating of "Hold" and a $54.33 average price target—while insiders have sold roughly 22,110 shares (~$1.17M) in the past 90 days.

Fluor Corporation (NYSE:FLR - Get Free Report)'s share price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $51.08, but opened at $46.15. Fluor shares last traded at $44.8250, with a volume of 1,497,507 shares.

The construction company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.66 by ($0.52). The company had revenue of $3.66 billion for the quarter, compared to analysts' expectations of $3.89 billion. Fluor had a negative net margin of 0.34% and a positive return on equity of 7.96%. The company's revenue was down 8.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.73 earnings per share.

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Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on FLR. Zacks Research cut Fluor from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. DA Davidson increased their target price on Fluor from $55.00 to $60.00 and gave the company a "buy" rating in a report on Thursday, February 19th. Truist Financial increased their target price on Fluor from $56.00 to $59.00 and gave the company a "buy" rating in a report on Thursday, February 19th. Citigroup increased their target price on Fluor from $57.00 to $61.00 and gave the company a "buy" rating in a report on Friday, February 20th. Finally, Weiss Ratings cut Fluor from a "hold (c)" rating to a "sell (d+)" rating in a report on Tuesday, February 17th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $54.33.

Insider Transactions at Fluor

In other news, insider Kevin B. Hammonds sold 2,988 shares of Fluor stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $52.61, for a total transaction of $157,198.68. Following the sale, the insider owned 16,273 shares of the company's stock, valued at approximately $856,122.53. The trade was a 15.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mark E. Fields sold 5,178 shares of the stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $52.36, for a total transaction of $271,120.08. Following the completion of the transaction, the insider directly owned 194,514 shares of the company's stock, valued at approximately $10,184,753.04. The trade was a 2.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 22,110 shares of company stock worth $1,168,920. 1.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. NewEdge Advisors LLC boosted its position in shares of Fluor by 40.3% during the first quarter. NewEdge Advisors LLC now owns 10,077 shares of the construction company's stock valued at $361,000 after purchasing an additional 2,896 shares in the last quarter. Jones Financial Companies Lllp raised its holdings in Fluor by 337.7% in the first quarter. Jones Financial Companies Lllp now owns 16,389 shares of the construction company's stock worth $587,000 after purchasing an additional 12,645 shares in the last quarter. Caxton Associates LLP bought a new position in Fluor in the first quarter worth $266,000. Acadian Asset Management LLC bought a new position in Fluor in the first quarter worth $54,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in Fluor by 7.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,782 shares of the construction company's stock worth $194,000 after purchasing an additional 248 shares in the last quarter. Hedge funds and other institutional investors own 88.07% of the company's stock.

Fluor Stock Performance

The business has a fifty day simple moving average of $48.04 and a 200-day simple moving average of $45.96. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.33. The firm has a market cap of $6.40 billion, a P/E ratio of -57.42, a P/E/G ratio of 1.35 and a beta of 1.33.

About Fluor

Fluor Corporation NYSE: FLR is a global engineering and construction firm that provides integrated solutions across the energy, chemicals, mining, clean energy, infrastructure and government services markets. The company's core offerings include engineering, procurement, fabrication, construction, maintenance and project management services, with capabilities spanning feasibility studies, detailed design and turnkey delivery. Fluor's diversified portfolio encompasses conventional oil and gas facilities, liquefied natural gas (LNG) plants, petrochemical facilities, power generation projects, transportation infrastructure and federal government programs.

Founded in 1912 by John Simon Fluor as the Fluor Construction Company in Pomona, California, the firm has grown into an industry leader headquartered in Irving, Texas.

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