The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Fluor met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins were steady, operating margins were steady, net margins dropped.
Fluor reported revenue of $7.14 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $7.14 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $6.04 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. GAAP EPS of $0.86 for Q3 were 10% higher than the prior-year quarter's $0.78 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 4.3%, about the same as the prior-year quarter. Operating margin was 3.7%, about the same as the prior-year quarter. Net margin was 2.0%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.27 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $27.82 billion. The average EPS estimate is $3.76.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,262 members out of 1,296 rating the stock outperform, and 34 members rating it underperform. Among 270 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 264 give Fluor a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fluor is outperform, with an average price target of $71.33.
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