Zacks Investment Research Lowers Fluor Corp. (FLR) to Sell
Fluor Corp. (NYSE:FLR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “Fluor has had a dismal earnings surprise history, with negative surprises in three of the four trailing quarters. The company’s top line growth has suffered lately, owing to reduced contribution from its Energy, Chemicals and Mining segment. Softness in commodity prices coupled with a dismal outlook for the energy and mining markets continue to pose threats to the company’s operations. The company expects slow recovery in the global economy, as customers continue to reduce capital investment budgets and delay final investment decisions, which could impact Fluor’s performance adversely. Also, Fluor faces intense competition in the global engineering, procurement and construction industry, which can pressurize its contract prices and profit margins. However, Fluor’s robust backlog level, with lucrative award wins in the Government and Infrastructure business lines, are likely to act as primary growth drivers, going forward.”
A number of other equities analysts have also weighed in on the company. Bank of America Corp. reiterated a “sell” rating and issued a $50.00 price target on shares of Fluor Corp. in a research report on Friday, August 5th. Credit Suisse Group AG reissued an “outperform” rating and issued a $62.00 price objective on shares of Fluor Corp. in a research note on Wednesday, July 6th. Janney Montgomery Scott reissued a “buy” rating on shares of Fluor Corp. in a research note on Tuesday, August 16th. MKM Partners set a $52.00 price objective on Fluor Corp. and gave the stock a “hold” rating in a research note on Friday, August 5th. Finally, DA Davidson reissued a “buy” rating on shares of Fluor Corp. in a research note on Friday, August 5th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have assigned a buy rating to the company’s stock. Fluor Corp. presently has an average rating of “Hold” and a consensus price target of $53.00.
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Fluor Corp. (NYSE:FLR) traded down 1.32% during trading on Wednesday, reaching $50.67. The company’s stock had a trading volume of 1,517,848 shares. The firm has a market capitalization of $7.06 billion, a price-to-earnings ratio of 22.17 and a beta of 1.74. Fluor Corp. has a 52-week low of $39.48 and a 52-week high of $55.69. The stock’s 50-day moving average is $50.86 and its 200 day moving average is $51.89.
Fluor Corp. (NYSE:FLR) last released its quarterly earnings results on Thursday, August 4th. The company reported $0.72 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.88 by $0.16. Fluor Corp. had a net margin of 1.81% and a return on equity of 15.45%. The company earned $4.86 billion during the quarter, compared to analyst estimates of $4.73 billion. During the same quarter last year, the business earned $1.00 EPS. The company’s revenue for the quarter was up 1.0% compared to the same quarter last year. On average, analysts predict that Fluor Corp. will post $3.25 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, October 4th. Shareholders of record on Friday, September 2nd were issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 1.66%. The ex-dividend date of this dividend was Wednesday, August 31st. Fluor Corp.’s dividend payout ratio (DPR) is currently 37.00%.
A number of hedge funds have recently added to or reduced their stakes in the stock. Citizens Financial Group Inc RI raised its stake in Fluor Corp. by 11.1% in the first quarter. Citizens Financial Group Inc RI now owns 2,006 shares of the company’s stock worth $108,000 after buying an additional 200 shares during the period. BlueMountain Capital Management LLC raised its stake in Fluor Corp. by 107.3% in the first quarter. BlueMountain Capital Management LLC now owns 2,303 shares of the company’s stock worth $124,000 after buying an additional 1,192 shares during the period. Point72 Asia Hong Kong Ltd acquired a new stake in Fluor Corp. during the second quarter worth about $128,000. Investment Counselors of Maryland LLC raised its stake in Fluor Corp. by 3.4% in the second quarter. Investment Counselors of Maryland LLC now owns 3,022 shares of the company’s stock worth $149,000 after buying an additional 100 shares during the period. Finally, IFP Advisors Inc raised its stake in Fluor Corp. by 23.3% in the first quarter. IFP Advisors Inc now owns 2,801 shares of the company’s stock worth $150,000 after buying an additional 529 shares during the period. 84.35% of the stock is currently owned by hedge funds and other institutional investors.
Fluor Corp. Company Profile
Fluor Corporation (Fluor) is a holding company. The Company is a professional services company. The Company provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services. It operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services and Power.
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