IRVING, Texas - Fluor Corporation (NYSE:FLR) shares plunged 13% in premarket trading Friday after the engineering and construction firm reported third quarter earnings that fell short of expectations and lowered its full-year guidance.
The company posted adjusted earnings per share of $0.51 for Q3, well below the analyst consensus estimate of $0.77. Revenue came in at $4.1 billion, missing expectations of $4.74 billion.
Fluor tightened its full year adjusted EPS guidance to a range of $2.55 to $2.75 per share, down from its previous outlook of $2.50 to $3.00. The new guidance falls short of Wall Street's forecast of $2.88 per share.
"While earnings in the quarter were less than planned due, in part, to certain project delays and cancellations, it does not change our focus on pursuing demand-driven growth opportunities in the markets we serve and on returning cash to shareholders," said David E. Constable, chairman and CEO of Fluor.
The company's Energy Solutions segment was a key area of weakness, with profit dropping to $50 million from $177 million a year ago. Fluor cited lower contributions from a large late-stage project and cost growth on a construction subcontract in Mexico.
New awards for the quarter totaled $2.7 billion, down from $5.0 billion in Q3 2023. However, the company's total backlog grew to $31.3 billion from $26 billion a year earlier.
Despite the disappointing results, Fluor highlighted strong operating cash flow of $330 million for the quarter. The company raised its 2024 cash flow guidance to approximately $700 million.
Fluor also announced its board approved an increase in its share repurchase program to 30.5 million shares authorized for buyback.
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