Fluor (FLR, Financial) shares witnessed a substantial decline today, falling by 8.41% to $39.75. This drop was primarily influenced by the release of the company's 2024 final earnings report, which disappointed both in terms of current financial performance and future projections.
Fluor's 2024 fourth-quarter revenue came in at $4.26 billion, reflecting an 11% increase from the previous year. However, despite the revenue growth, the non-GAAP net income took a hit with a 28% drop, settling at $84 million or $0.48 per share. These numbers fell short of analysts’ predictions of $4.48 billion in revenue and $0.78 per share in adjusted EPS. The company's forward guidance for 2025 added to investor concerns as it projected EBITDA in the range of $575 million to $675 million and adjusted EPS between $2.25 and $2.75, both below market expectations of $2.95 EPS.
Fluor (FLR, Financial), listed on the NYSE, is experiencing challenging times not only because of its recent earnings miss but also due to other financial metrics. The company's P/E ratio stands at 27.6, which may suggest overvaluation, especially when considering the GF Value estimation of the stock is 34.45, indicating that the stock may be modestly overvalued. Additionally, the company's Price-to-Book (PB) ratio is 3.03, close to its 1-year low of 3.22, suggesting limited upside from a historical perspective.
Despite the decline, Fluor (FLR, Financial) does showcase a strong financial position with a robust Altman Z-score of 4.02, indicating low bankruptcy risk, and a cash-to-debt ratio of 2.69, reflecting a healthy liquidity position. The stock's predictability is rated at 1, however, caution is advised due to the warning signs such as declining revenue per share over the last five years and recent insider selling transactions.
Investors should remain cautious and consider the company's longer-term growth strategies and market conditions before making investment decisions. With a market cap of $6.82 billion and a year-to-date price change of -20.15%, Fluor (FLR, Financial) may appeal to value investors looking for potential recovery opportunities, albeit with inherent risks.
