Fluor reported better-than-expected third-quarter earnings and revenue early Friday. Profit soared more than 1,300%, leading the engineering and construction firm to increase its full-year expectations. FLR shares advanced Friday.
The Texas-based multinational reported Friday that Q3 earnings grew 1,357% to $1.02 per share, up from 7 cents per share a year ago. Fluor saw third-quarter sales increase 10% to $3.96 billion. Wall Street had expected EPS of 56 cents and revenue totaling $3.83 billion.
"This quarter's results reflect our deliberate focus on driving profitability through improved project execution and our high-quality contract backlog," Chief Executive David Constable said in the earnings release. "Fluor is well positioned to support demand-driven growth and improved shareholder returns."
Fluor also revised its 2023 outlook. The company now predicts full-year EPS of $2.50-$2.70, up from its previous expectation of $2.00-$2.30. FLR also updated its 2023 adjusted EBITDA guidance from a previous range of $500 million-$600 million to approximately $600 million.
Fluor based its revisions on "positive advances" in large projects in its energy solutions business.
The company's earnings beat and optimistic outlook come as Orsted, the Danish renewable-energy company, booked a $4 billion impairment charge in the third quarter due to its U.S. offshore wind portfolio. The company said it will stop development of two wind farm projects off the coast of New Jersey amid spiraling costs and supplier delays.
FLR Shares Soar On Earnings
Fluor stock surged 5.8% to 36.66 Friday during market action. On Thursday, FLR shares advanced 3% to 34.63. Fluor stock is currently consolidating below a 38.87 buy point, according to MarketSmith. FLR booked losses in eight of the last 12 sessions, before rebounding from support at its 200-day moving average.
FLR, through subsidiaries and joint ventures, provides engineering and construction services on oil and gas projects, industrial and infrastructure operations along with government and power production.
The company's energy solutions segment provides services for the fuels, chemicals, liquefied natural gas and nuclear project services industries.
In Q3, Fluor's energy solutions business reported a profit of $177 million, up $59 million vs. a year ago, on cost recovery entitlements on several fixed-price projects. FLR's energy business revenue in Q3 was $1.6 billion, consistent with a year ago, with new awards totaling $3.3 billion. Last year, Fluor's new awards came in at $3.6 billion.
Infrastructure services firm Quanta Services bounced nearly 10% Thursday after better-than-expected Q3 earnings and revenue. PWR edged down 3.2% to 169.44 Friday.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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