Fluor Corp
FLR: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$71.00 | Xsfn | Wpf |
Fluor Earnings: Full-Year Outlook Maintained Despite Charges on Legacy Projects
We are maintaining our $33 fair value estimate for no-moat Fluor after the engineering & construction firm reported mixed first-quarter results. While revenue was up 20% from the prior-year period, Fluor posted a $107 million net loss driven by $80 million in charges on two legacy projects as well as a $60 million negative earnings impact from the sale of Ameco South America. Management expects full-year cash flow to be modestly positive, even with around $200 million for legacy project cash needs.