Fluor Corp (FLR)

[eFinanceMarkets]

Fluor -8% on big Q1 earnings miss, downside guidance

Fluor (FLR -7.8%) is sharply lower after Q1 earnings plunged 42% Y/Y and fell far short of analyst expectations, which the company attributes to a shift from higher margin engineering activities to lower margin construction.

FLR also cuts its FY 2017 EPS guidance range to $2.25-$2.75 from its earlier outlook for $2.75-$3.25 and below the $2.90 analyst consensus estimate.

Q1 revenues from the Energy, Chemicals and Mining segment fell 5.8% Y/Y to $2.3B, while revenues in Industrial, Infrastructure and Power jumped 44% to $1.2B.

FLR says it "continue(s) to experience headwinds as it relates to the timing of client capital decisions as we come off of one of the lowest commodity cycles this industry has seen in recent history."