Fluor Gears Up to Report Q4 Earnings: Here's What's in Store

Core Viewpoint - Fluor Corporation (FLR) is set to report its fourth-quarter 2024 results on February 18, with expectations of revenue growth driven by its primary segments despite recent earnings misses [1][2]. Financial Performance - In the last reported quarter, Fluor's adjusted earnings per share (EPS) and revenues missed the Zacks Consensus Estimate by 34.6% and 14.6%, respectively, with a year-over-year revenue growth of 3.3% and a 50% decline in the bottom line [2]. - The Zacks Consensus Estimate for the upcoming fourth-quarter EPS has decreased to 78 cents from 79 cents, indicating a 14.7% year-over-year growth from 68 cents, while the revenue estimate is $4.72 billion, reflecting a 23.6$3.82 billion reported in the same quarter last year [4]. Revenue Drivers - Revenue growth is expected to be supported by increased contributions from the Energy Solutions, Urban Solutions, and Mission Solutions segments, driven by demand for traditional energy, energy transition, low-carbon power projects, and defense projects [5]. - The Energy Solutions segment is estimated to generate $1.64 billion in revenues, up from$1.42 billion a year ago, while Urban Solutions is expected to reach $2.06 billion, an increase from$1.42 billion [7]. - The Mission Solutions segment is projected to report revenues of $711 million, up from$646 million, while the Other segment is expected to decline to $315 million from$332 million [7][8]. Margin Analysis - Fluor's bottom line is anticipated to have improved year-over-year due to effective execution of its "Building a Better Future" strategy and a focus on cost-plus/low-risk bookings, despite facing higher costs and macroeconomic challenges [9]. - The profit estimates for the Energy Solutions and Mission Solutions segments are $52 million and$50 million, respectively, showing growth from $26 million and$31 million year-over-year [10]. - The Urban Solutions segment profit is expected to decline to $70 million from$147 million, while the Other segment is projected to report a loss of $25 million, significantly improved from a loss of$119 million in the previous year [11]. Earnings Prediction - The current Zacks model indicates that Fluor does not have a strong prediction for an earnings beat, with an Earnings ESP of -8.09% and a Zacks Rank of 4 (Sell) [12][13].