Earnings Preview: Fluor (FLR) Q2 Earnings Expected to Decline

Core Viewpoint - The upcoming earnings report for Fluor is critical, with expectations for a year-over-year decline in earnings despite higher revenues, which could significantly impact its stock price [2][9]. Earnings Expectations - Fluor is expected to report quarterly earnings of $0.68 per share, reflecting a year-over-year decline of 10.5% [2]. - The consensus EPS estimate has been revised 5.68% higher over the last 30 days, indicating a reassessment by analysts [3]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5]. - Fluor currently has an Earnings ESP of -2.96%, indicating a bearish outlook from analysts [6]. Industry Comparisons - Quanta Services, another player in the engineering and construction sector, is expected to post earnings of $1.93 per share, representing a year-over-year increase of 17%, with revenues projected at $5.51 billion, up 9.2% [8]. - Fluor's expected revenues are $4.35 billion, reflecting a 10.5% increase from the previous year [18]. Historical Performance - In the last reported quarter, Fluor's actual earnings of $0.47 per share fell short of the expected $0.54, resulting in a surprise of -12.96% [15]. - Quanta Services has beaten consensus EPS estimates three out of the last four quarters, showcasing a stronger performance compared to Fluor [25][26]. Conclusion - Fluor does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors before making decisions regarding this stock [27].