Fluor Corporation (FLR)

Flour Corporation (FLR) stock dropped by 12.73% due to the release of fourth-quarter results. While the company surpassed market estimates for adjusted earnings per share, its quarterly sales fell short of expectations.

• Financial Performance Highlights: Fluor posted adjusted earnings of 68 cents per share, exceeding market estimates of 57 cents per share. However, quarterly sales came in at $3.82 billion, lower than the expected $4.11 billion. For the year 2023, Fluor reported a revenue of $15.5 billion.
• Key Metrics: Net income attributable to Fluor stood at $139 million, or $0.54 per diluted share. The company secured new awards totaling $19.5 billion, with an 87% reimbursable rate. Backlog increased by over 10% to reach $29.4 billion, marking the second consecutive year of growth. Consolidated segment profit rose to $537 million in 2023 from $427 million in 2022. Adjusted EBITDA for 2023 was $613 million, with an adjusted diluted EPS of $2.73.
• Cash Flow Outlook: Fluor anticipates improved cash flow conversion in 2024, with operating cash flow reported at $212 million for 2023.
• Conclusion: Despite exceeding earnings expectations and achieving notable growth in key metrics such as backlog and segment profit, Fluor's stock faced a significant decline, likely due to the shortfall in quarterly sales. The company's focus on improving cash flow conversion in the coming year indicates efforts to strengthen its financial position amidst market challenges.