Core Viewpoint - Fluor (FLR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Fluor's Earnings Outlook - The upgrade for Fluor reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. - Analysts have raised their earnings estimates for Fluor, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $2.51 per share, showing a 0.4% increase over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [8][9].

Core Insights - The article compares Fluor (FLR) and Quanta Services (PWR) to determine which stock presents a better value opportunity for investors in the Engineering - R and D Services sector [1] Valuation Metrics - Fluor has a forward P/E ratio of 19.78, while Quanta Services has a forward P/E of 34.95 [5] - Fluor's PEG ratio is 2.38, compared to Quanta Services' PEG ratio of 2.59, indicating Fluor may offer better value considering expected earnings growth [5] - Fluor's P/B ratio is 2.29, significantly lower than Quanta Services' P/B ratio of 7.16, suggesting Fluor is more undervalued relative to its book value [6] Earnings Outlook - Fluor currently holds a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while Quanta Services has a Zacks Rank of 3 (Hold) [3][7] - The improving earnings outlook for Fluor enhances its attractiveness as a value investment [7] Value Grades - Based on various valuation metrics, Fluor holds a Value grade of B, whereas Quanta Services has a Value grade of D, further supporting Fluor as the superior value option [6]

Group 1: O'Reilly Automotive and AutoZone - O'Reilly Automotive reported first-quarter earnings of $9.35 per share, missing market estimates of $9.94 per share, with quarterly sales of $4.14 billion compared to expectations of $4.17 billion [1] - Jim Cramer recommended AutoZone over O'Reilly Automotive, highlighting that AutoZone has outperformed the market by 10.81% annually over the past 15 years, with an average annual return of 22.06% and a current market capitalization of $62.8 billion [2] Group 2: ASML Holding and Lam Research - ASML Holding reported a first-quarter sales miss, with a sequential revenue decline of 16.75% from €9.3 billion in the fourth quarter [3] - Jim Cramer recommended Lam Research Corporation over ASML, indicating a preference for Lam Research due to ASML's recent performance [3] Group 3: Onto Innovation - Onto Innovation issued second-quarter guidance below market estimates, projecting adjusted EPS of $1.21-$1.35 versus estimates of $1.50, and expected sales of $240 million to $260 million compared to projections of $269.10 million [4] Group 4: Fluor - UBS analyst maintained a buy rating for Fluor but lowered the price target from $49 to $48 [5] - Fluor shares fell 0.5% to close at $38.53 [6]

Company Overview - Ramaco Resources, a small coal miner based in Kentucky, has discovered a significant deposit of rare earth elements at its Brook Mine in Wyoming, which it purchased for $2 million [2][3] - The company has a market capitalization of $571 million and primarily mines coal for steel production in West Virginia and Virginia [3] Discovery and Potential Impact - The Brook Mine is estimated to contain up to 1.7 million tons of rare earth oxides, which could significantly alter the company's fortunes [2] - This discovery aligns with U.S. efforts to reduce dependence on China for rare earth elements, which are critical for national defense [3][4] National Security and Supply Chain - The U.S. relied on foreign countries for approximately 10,000 metric tons of rare earths in 2023, with China accounting for 70% of imports [4] - Ramaco's Brook Mine could help alleviate a national strategic supply shortfall of rare earths and critical minerals, allowing the U.S. to process its ores domestically [5] Production Capacity - The Brook Mine is projected to produce an estimated 1,400 metric tons of rare earth elements annually, marking the first new rare earth facility in the U.S. in over 70 years [5]

Financial Performance - Revenue reached $4.0 billion[7], while new awards totaled $5.8 billion[7] - The ending backlog stands at $28.7 billion[7], with 79% being reimbursable[7] - Adjusted EPS was $0.73[37] and adjusted EBITDA was $155 million[37] - The company had a cash balance of $2.5 billion[39] Segment Results - Urban Solutions segment profit was $70 million[17], with new awards of $5.3 billion[17] and a backlog of $20.2 billion[17], an 8% increase in the past 12 months[17] - Energy Solutions segment profit was $47 million[28], with new awards of $315 million[28] and a backlog of $6.2 billion[28] - Mission Solutions segment profit was $5 million[33], with new awards of $164 million[33] and a backlog of $2.4 billion[33] Outlook - The company anticipates revenue growth of 15% for FY 2025[43] - Adjusted EBITDA is projected to be between $575 million and $675 million[43], with adjusted EPS between $2.25 and $2.75[43]

Core Insights - Fluor Corporation reported mixed first-quarter 2025 results, with adjusted earnings exceeding the Zacks Consensus Estimate while revenues fell short [1][3] - The company's performance reflects the impact of its four-year strategy aimed at expanding a reimbursable backlog and improving project execution [2] Financial Performance - Adjusted earnings per share (EPS) were 73 cents, surpassing the Zacks Consensus Estimate of 50 cents by 46%, and up from 47 cents in the same quarter last year [3] - Quarterly revenues totaled $3.98 billion, missing the consensus mark of $4.25 billion by 6.3%, but grew 7% from $3.82 billion year-over-year [3] - Segment profit was $131 million, an 11% increase year-over-year, with a segment margin of 3.3%, up 10 basis points from the previous year [3] Segment Performance - The Energy Solutions segment saw revenues decline by 15.7% year-over-year to $1.21 billion, attributed to reduced execution activity on nearing completion projects [5] - The Urban Solutions segment reported revenues of $2.16 billion, a significant increase of 45.8% year-over-year, driven by heightened execution activities on life sciences projects [7] - The Mission Solutions segment's revenues totaled $597 million, down 0.7% from the previous year, with a margin decrease of 290 basis points to 0.8% [8] New Awards and Backlog - Total new awards for the quarter were $5.81 billion, down from $7.02 billion year-over-year, with a consolidated backlog of $28.72 billion, down from $32.74 billion [4] - The Urban Solutions segment achieved new awards of $5.33 billion, up from $4.87 billion a year ago, with a backlog of $20.15 billion, an increase of 8.3% [8] Cash and Guidance - As of March 31, 2025, Fluor had cash and cash equivalents of $2.43 billion, down from $2.83 billion at the end of 2024 [11] - The company maintains its 2025 guidance for adjusted EPS in the range of $2.25-$2.75 and adjusted EBITDA between $575 million and $675 million [12]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][27] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [21][22] Business Segment Data and Key Metrics Changes - Urban Solutions segment reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [14] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a $28 million reserve related to a long-standing claim [17] Market Data and Key Metrics Changes - Significant awards in life sciences and infrastructure contributed to backlog, while scope reductions on two large projects offset some gains [8] - New awards in infrastructure included a $682 million construction contract for TxDOT [13] - The company is tracking opportunities in pharmaceuticals, advanced manufacturing, and semiconductor spaces [11][12] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - Plans to pursue bolt-on acquisitions to enhance technical capabilities in target markets [6] - Emphasis on maintaining strong client relationships and project delivery to create stakeholder value [6] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [19] - Despite some clients being price-sensitive, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [19][37] - The company remains confident in its backlog and the ability to convert projects into revenue, despite potential delays [56][62] Other Important Information - The company plans to repurchase up to $600 million in shares for 2025, with $142 million spent in Q1 [26] - Cash and marketable securities at the end of Q1 were $2.5 billion, a decrease of over $400 million from year-end [23] - Operating cash flow for Q1 was an outflow of $286 million, compared to an outflow of $111 million a year ago [24] Q&A Session Summary Question: Client sentiment changes and project sensitivity - Management indicated that projects in urban solutions are moving forward, while energy projects require more certainty [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged the impact of stock price on earnings and expressed confidence in the outlook for the year [45][46] Question: Dow project delay and potential underutilization - Management clarified that while some projects may experience delays, they do not expect significant underutilization [58][60] Question: Urban Solutions segment and profit recognition - Management confirmed that an $84 million benefit recognized was not included in segment profit results [70] Question: Legacy projects in Mexico - Management expressed confidence in ongoing projects in Mexico and indicated limited forward-looking exposure [90][91]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][8] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [21][22] Business Segment Data and Key Metrics Changes - Urban Solutions segment reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [14][15] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a reserve of $28 million related to a long-standing claim [17] Market Data and Key Metrics Changes - Significant new awards in Urban Solutions were driven by life sciences and infrastructure projects [8] - The infrastructure segment secured a $682 million construction contract for highway widening in Texas [13] - The company is tracking opportunities in pharmaceuticals, advanced manufacturing, and green steel production [11][12] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - There is an emphasis on maintaining strong client relationships and pursuing bolt-on acquisitions to enhance technical capabilities [6] - The company aims to leverage its financial foundation for capital allocation opportunities, including share repurchases and reinvestment [26] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [19] - Despite some clients being sensitive to costs, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [19][36] - The company maintains confidence in its backlog and the ability to convert projects into revenue, despite potential delays [60][65] Other Important Information - The company plans to repurchase up to $600 million in shares for 2025, with $150 million expected in Q2 [26] - Cash and marketable securities at the end of Q1 were $2.5 billion, a decrease of over $400 million from year-end [23] - Operating cash flow for Q1 was an outflow of $286 million, compared to an outflow of $111 million a year ago [24] Q&A Session Summary Question: Client sentiment changes since the last call - Management indicated that while some clients are more price-sensitive, many projects, especially in urban solutions, are moving forward as planned [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged that the strong Q1 EBITDA performance may not be indicative of the full year, but they remain confident in achieving their guidance [44][46] Question: Impact of project delays on second-half performance - Management does not expect significant underutilization despite some project delays, as the quality of the backlog remains strong [58][60] Question: Cash collection potential from joint ventures - Management expects cash collection from joint ventures to be lower than the previous year, with more confidence in Canadian projects compared to those in Mexico [95]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][8] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [22][23] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [15][16] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a $28 million reserve related to a long-standing claim [18] Market Data and Key Metrics Changes - Significant new awards in Urban Solutions were driven by life sciences and infrastructure projects [8] - The company is seeing strong demand in pharmaceuticals, advanced manufacturing, and semiconductor sectors [12][13] - Infrastructure projects include a $682 million construction contract for highway widening in Texas [14] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - There is an emphasis on maintaining strong client relationships and pursuing bolt-on acquisitions to enhance technical capabilities [6][7] - The company aims to leverage its financial foundation for capital allocation opportunities, including share repurchases and reinvestment [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [20][36] - Despite some clients being sensitive to costs, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [20][36] - The company maintains a positive outlook for new awards, expecting a book to burn ratio above one and revenue growth of approximately 15% [29] Other Important Information - The company repurchased 3.6 million shares for $142 million in Q1, with plans for up to $600 million in repurchases for 2025 [27] - The effective tax rate for Q1 was approximately 20%, expected to rise to around 30% for the full year [30] Q&A Session Summary Question: Client sentiment changes since the last call - Management indicated that projects in urban solutions are moving forward, while energy and copper projects require more certainty [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged that the first quarter's EBITDA was strong but emphasized the need for continued revenue growth to meet annual guidance [44][46] Question: Impact of project delays on second half performance - Management expressed confidence in the quality of the backlog and the ability to convert projects, despite some delays [55][56] Question: Clarification on Urban Solutions segment benefits - The $84 million benefit recognized was not included in segment profit results and was related to equity income [67][69] Question: Cash collection potential from joint ventures - Management expects cash collection from joint ventures to be lower than the previous year, with a focus on recouping profits from Canada [92]

分组1 - Fluor reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and up from $0.47 per share a year ago, representing an earnings surprise of 46% [1] - The company posted revenues of $3.98 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.26%, compared to $3.73 billion in the same quarter last year [2] - Fluor has surpassed consensus EPS estimates two times over the last four quarters but has not beaten consensus revenue estimates during the same period [2] 分组2 - The stock has underperformed, losing about 27.5% since the beginning of the year, while the S&P 500 declined by 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.59 on revenues of $4.76 billion, and for the current fiscal year, it is $2.42 on revenues of $18.63 billion [7] - The Zacks Industry Rank for Engineering - R and D Services is in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]