By Fluor Reports Unexpected Loss in Fourth Quarter
Fluor Corporation shares dropped by 10% to $37.98 following an unexpected loss outlined in their fourth-quarter report.
Quarterly Performance
The company stated a quarterly loss available to common stockholders of $21 million, or 12 cents per share, in comparison to a loss of $1 million, or 1 cent per share during the same period last year. According to analysts surveyed by FactSet, the consensus was an expectation of earnings amounting to $98.3 million, or 56 cents per share. Adjusted earnings for the quarter stood at 68 cents a share, surpassing analysts’ projections of 57 cents per share.
Revenue Highlights
Quarterly revenue totaled $3.82 billion, slightly underperforming compared to last year’s $3.71 billion and falling short of the projected $4.11 billion, as anticipated by analysts.
Factors Contributing to Results
Fluor attributed the results of the fourth quarter to a combination of settling claims on a legacy infrastructure project, along with cost growth and schedule extensions on a significant upstream legacy project. The latter is expected to conclude in the first quarter of 2024. Additionally, a $93 million loss on sale linked to the Stork business in Latin America impacted the financial outcomes.
Future Outlook
Looking ahead, Fluor anticipates adjusted earnings ranging from $2.50 to $3 per share for the year 2024, differing from analysts’ consensus of $2.86 in adjusted earnings.
Overall, despite the reported loss for the fourth quarter, Fluor remains optimistic about their future performance and strategic initiatives moving forward.
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