Skip to main content

Market Overview

FBR Downgrades Fluor Given 'Intermediate-Term Uncertainty'

Share:
FBR Downgrades Fluor Given 'Intermediate-Term Uncertainty'

On Friday, FBR & Co. issued a company note on Fluor Corporation (NEW) (NYSE: FLR) and lowered its earnings estimates after the company announced 4Q15 results below consensus expectations. Analysts at FBR & Co downgraded Fluor Corporation from Outperform to Market Perform and lowered their price target from $57 to $46.

Alex Rygiel and Min Cho, analysts at FBR, wrote, "We are lowering our estimates to reflect weaker revenue and profit margin expectations for both 2016 and 2017 [...] the share price is not expensive, yet given the significantly uncertain outlook across the global oil & gas and mining market-place, we believe that it is unlikely that backlog (and subsequently earnings) will increase."

Related Link: Fluor Downgraded To Market Perform At FBR; Firm Needs Greater Visibility

Justification

Analysts at FBR & Co gave two reasons why they downgraded Fluor Corporation:

1. Few Catalysts For Revenue Growth
Analysts noted that Fluor Corporation's 12-month backlog of $17 billion is down 10 percent year over year. This may make achieving revenue growth difficult as the company's top line is significantly dependent on the visibility of future orders.

2. Profitability
FBR noted that Fluor Corporation had over $31 million of cost overruns in the fourth quarter of 2015. This, along with signs that consumer demand may be slowing, has caused analysts at FBR to question the ability for margin expansion in 2016.

At the time of publication, Fluor Corporation was seen trading down 6.63 percent at $43.38.

Image Credit: Public Domain

Latest Ratings for FLR

DateFirmActionFromTo
Mar 2021Credit SuisseMaintainsNeutral
Jan 2021Vertical ResearchUpgradesHoldBuy
Nov 2020UBSMaintainsNeutral

View More Analyst Ratings for FLR
View the Latest Analyst Ratings

 

Related Articles (FLR)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Short Ideas Downgrades Price Target Analyst Ratings Movers

Latest Ratings

StockFirmActionPT
ETCredit SuisseMaintains13.0
IFRXCredit SuisseMaintains2.8
METCredit SuisseMaintains68.0
FLXNCredit SuisseMaintains14.0
ENPHCapital OneInitiates Coverage On175.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com