Fluor (NYSE:FLR) Shares Gap Down on Disappointing Earnings

Key Points

• Fluor's shares gapped down significantly from $56.77 to $42.35 following a disappointing earnings report, with the latest trading price at $38.90.
• The company reported earnings per share (EPS) of $0.43, falling short of the expected $0.59, and revenues of $3.98 billion, missing analyst estimates of $4.55 billion.
• Several analysts have downgraded Fluor's stock, with consensus rating now at "Hold" and a target price of $54.43, following recent changes in institutional investor positions.

Fluor Corporation (NYSE:FLR - Get Free Report)'s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $56.77, but opened at $42.35. Fluor shares last traded at $38.90, with a volume of 5,879,514 shares.

The construction company reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.16). Fluor had a net margin of 11.13% and a return on equity of 14.59%. The firm had revenue of $3.98 billion during the quarter, compared to analyst estimates of $4.55 billion. During the same quarter last year, the company earned $0.85 EPS. The company's quarterly revenue was down 5.9% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Wall Street Zen lowered Fluor from a "buy" rating to a "hold" rating in a research report on Monday, May 5th. UBS Group reaffirmed a "buy" rating and issued a $60.00 target price (up from $48.00) on shares of Fluor in a research report on Tuesday, June 24th. KeyCorp lowered Fluor from an "overweight" rating to a "sector weight" rating and set a $41.00 target price on the stock. in a research report on Tuesday, July 15th. Truist Financial upped their target price on Fluor from $47.00 to $59.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Finally, Robert W. Baird upped their target price on Fluor from $41.00 to $55.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $54.43.

Insider Activity at Fluor

In related news, insider Alvin C. Collins III sold 18,920 shares of the firm's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $45.43, for a total transaction of $859,535.60. Following the completion of the transaction, the insider owned 64,383 shares in the company, valued at $2,924,919.69. This trade represents a 22.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman David E. Constable sold 40,800 shares of the firm's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $49.00, for a total value of $1,999,200.00. Following the transaction, the chairman owned 870,627 shares of the company's stock, valued at $42,660,723. This trade represents a 4.48% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 98,320 shares of company stock valued at $4,870,182 in the last 90 days. 1.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fluor

A number of institutional investors have recently made changes to their positions in the stock. IFP Advisors Inc bought a new stake in shares of Fluor in the second quarter valued at about $27,000. Hurley Capital LLC acquired a new position in Fluor during the 1st quarter worth approximately $29,000. Sterling Capital Management LLC grew its stake in shares of Fluor by 196.2% during the 4th quarter. Sterling Capital Management LLC now owns 616 shares of the construction company's stock worth $30,000 after acquiring an additional 408 shares in the last quarter. Strategic Investment Solutions Inc. IL raised its holdings in shares of Fluor by 800.0% in the first quarter. Strategic Investment Solutions Inc. IL now owns 900 shares of the construction company's stock valued at $32,000 after purchasing an additional 800 shares during the last quarter. Finally, Cullen Frost Bankers Inc. acquired a new stake in shares of Fluor in the second quarter valued at approximately $33,000. 88.07% of the stock is owned by institutional investors and hedge funds.

Fluor Price Performance

The firm has a market cap of $6.48 billion, a price-to-earnings ratio of 3.78, a PEG ratio of 2.69 and a beta of 1.34. The company's fifty day moving average is $49.90 and its 200 day moving average is $43.01. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.30.

Fluor Company Profile

Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; operation and maintenance; asset integrity; and project management services worldwide. The company operates through Energy Solutions, Urban Solutions, Mission Solutions, and Other segments. The Energy Solutions segment provides solutions to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources.

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