The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Fluor missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Fluor reported revenue of $7.02 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $7.19 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $6.25 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 $1.58. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share. Non-GAAP EPS of $1.58 for Q4 were 76% higher than the prior-year quarter's $0.90 per share. GAAP EPS were -$0.03 for Q4 versus $0.89 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -0.2%, 520 basis points worse than the prior-year quarter. Operating margin was -0.8%, 480 basis points worse than the prior-year quarter. Net margin was -0.1%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.03 billion. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $29.31 billion. The average EPS estimate is $4.17.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,255 members out of 1,286 rating the stock outperform, and 31 members rating it underperform. Among 286 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 279 give Fluor a green thumbs-up, and seven 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 $70.05.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Fluor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.