Fluor Corporation FLR is scheduled to report fourth-quarter 2024 results on Feb. 18, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s adjusted earnings per share (EPS) and revenues missed the Zacks Consensus Estimate by 34.6% and 14.6%, respectively. On a year-over-year basis, the top line grew 3.3% while the bottom line tumbled 50%.

This engineering, procurement, construction and maintenance services provider’s earnings topped the consensus mark in two of the trailing four quarters and missed on the remaining two occasions, with a negative average of 0.3%.

Trend in FLR’s Estimates

The Zacks Consensus Estimate for the company’s fourth-quarter EPS has moved south to 78 cents from 79 cents in the past 30 days. The estimated figure indicates 14.7% year-over-year growth from 68 cents.

The consensus estimate for revenues is pegged at $4.72 billion, indicating a rise of 23.6% from $3.82 billion reported in the year-ago quarter.

Factors Likely to Shape Fluor’s Q4 Results

Revenues

Fluor’s top-line performance is expected to have been driven by increased contributions from three of its primary segments, Energy Solutions, Urban Solutions and Mission Solutions. The uptick in the contributions from these segments is likely to have been backed by increased demand for traditional energy, energy transition and low-carbon power projects along with engineering, procurement, and construction and defense projects. Continued strength in environmental remediation, national security and nuclear fuel markets is also likely to have been incremental for the quarter’s uptrend.

Although the company faces risks from potential project delays and cancellations, the reduced proportion of this headwind is likely to have been beneficial alongside new award wins.

Segment-wise, the Zacks Consensus Estimate for Energy Solutions revenues (comprising 34.9% of third-quarter 2024 total revenues) is currently pegged at $1.64 billion, indicating an increase from $1.42 billion in the year-ago period. The consensus mark for Urban Solutions revenues (comprising 47.2% of third-quarter total revenues) of $2.06 billion reflects growth from $1.42 billion a year ago. The consensus mark for Mission Solutions segment revenues (comprising 15.5% of third-quarter total revenues) of $711 million depicts year-over-year growth from $646 million.

The Other segment (comprising 2.4% of third-quarter total revenues) is expected to register revenues of $315 million, down from $332 reported in the prior year.

Notably, Fluor’s effective execution of the "Building a Better Future" strategy and its diversified presence in the market are likely to have supported its prospects amid the lingering macro uncertainties.

Margins

Thanks to Fluor’s strategy of ensuring cost-plus/low-risk bookings and increased execution activities with reduced project delays and cancellations, its bottom line is likely to have grown during the quarter on a year-over-year basis. Although higher costs and expenses, foreign currency fluctuations and other macro risks are expected to have been headwinds to the margins, the tailwinds mentioned above are likely to have aided the expansion this quarter.

The Zacks Consensus Estimate for the Energy Solutions and Mission Solutions segments' profit is pegged at $52 million and $50 million, indicating year-over-year growth from $26 million and $31 million, respectively. The Other segment is expected to report a loss of $25 million, which compares with a loss of $119 million reported in the year-ago quarter.

On the contrary, the consensus mark for Urban Solutions’ segment profit is pegged at $70 million, down year over year from $147 million.

What the Zacks Model Says About FLR

Our proven model does not conclusively predict an earnings beat for Fluor this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

Earnings ESP: FLR has an Earnings ESP of -8.09%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Dycom Industries, Inc. DY currently has an Earnings ESP of +4.97% and a Zacks Rank of 2.

DY’s earnings for the fourth quarter of fiscal 2024 are expected to increase 15.2%. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining one occasion, the average surprise being 16.6%.

Frontdoor, Inc. FTDR currently has an Earnings ESP of +60.00% and a Zacks Rank of 2.

FTDR’s earnings for the fourth quarter of 2024 are expected to decline 45%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 269%.

Trex Company, Inc. TREX has an Earnings ESP of +20.00% and a Zacks Rank of 2.

TREX reported better-than-expected earnings in each of the last four quarters, the average surprise being 9%. The company’s earnings for the fourth quarter of 2024 are expected to decrease 75%.

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Fluor Corporation (FLR) : Free Stock Analysis Report

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