Fluor Corp. (NYSE:FLR) shares surged nearly 10% today after the engineering and project management services provider delivered a robust third-quarter performance, raised its financial outlook, and bagged a major contract from miner BHP Group (NYSE:BHP).
Fluor’s Q3 revenue increased by 9.7% year-over-year to $4 billion. The figure exceeded estimates by $170 million. Further, EPS of $1.02 outpaced expectations by $0.46. The company’s focus on project execution seems to be paying off. New awards for the quarter stood at $5 billion, with the consolidated backlog at the end of the quarter coming in at a healthy $26 billion. Moreover, the company reported higher profits across its Energy Solutions, Urban Solutions, and Mission Solutions segments.
The company has upped its financial outlook for Fiscal year 2023 owing to positive advances on large energy projects and progress on its projects in the legacy portfolio. Fluor now expects EPS for the year to be in the range of $2.50 to $2.70, compared to the previous outlook of between $2 and $2.30. Additionally, adjusted EBITDA for the year is anticipated at $600 million versus prior expectations in the range of $500 million to $600 million.
But there’s more, Fluor’s Mining and Metals business has been selected by BHP Canada for the development of stage 2 of its Jansen potash project in Saskatchewan, Canada. Fluor expects project execution to begin later this month and anticipates recognizing the reimbursable contract value in the upcoming quarter.
What Is FLR Stock Price Prediction?
Overall, the Street has a Moderate Buy consensus rating on Fluor. Following a nearly 34% surge in Fluor shares over the past six months, the average FLR price target of $39.60 implies a modest 4.1% potential upside in the stock.
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