FLR - Fluor Corp - ROE of 21% crushes the industry average of 6%

Fluor Corporation (FLR) is a solid Growth & Income pick that will be reporting first-quarter results on May 12, 2008. In late February, the company posted record results for 2007 and upped its guidance for 2008. Net earnings for 2007 soared 102% year-over-year to a record $533 million. Wall Street estimates are on the rise with current forecasts of $5.61 climbing from $5.46 over the past 90 trading days. Fluor also offers income, sporting a dividend yield of 0.6%, which is above the industry average, and FLR’s ROE of 21% crushes the industry average of 6%.

Full Analysis

Fluor Corporation provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenue of $16.7 billion in 2007.

In late February, the company posted record results for 2007 and upped its guidance for 2008. Net earnings for 2007 soared 102% to a record $533 million, or $5.85 per share, from the year-prior $263 million, or $2.95 per share.

"2007 was the best year in the company's history, with record-breaking financial performance across all key metrics," said Chairman and Chief Executive Officer Alan Boeckmann. "Global demand for energy, infrastructure and basic materials are fueling substantial opportunities, and when combined with our $30 billion backlog, we expect Fluor to continue to deliver strong growth in 2008."

Revenue for the quarter climbed 30% to $4.7 billion, versus the previous year’s $3.6 billion. FLR mentioned that revenue growth reflected significant increases in the Oil & Gas, Industrial & Infrastructure and Power segments.

The company lifted its earnings guidance for 2008 to a range of $5.10 to $5.50 per share, from a range of $4.90 to $5.30 per share. Wall Street was in agreement with Fluor’s outlook, and analysts have been more bullish since. Current Street forecasts of $5.61 were increased from $5.46 over the past 90 trading days.

FLR’s dividend yield for 0.6 is above the industry average and its ROE of 21% crushes the industry average of 6%.

Content Courtesy: Zacks Investment Research

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