Shares of Fluor (NYSE: FLR) tumbled nearly 23% by 11:15 a.m. EDT on Thursday. Driving the engineering and construction company's decline were its first-quarter results, which came in well below expectations. On top of that, it slashed its full-year forecast, and its CEO stepped down.
Fluor recorded $4.19 billion in revenue during the first quarter. That not only declined 13.1% year over year but missed the consensus estimate by $570 million. The company reported weak results across most of its business segments. Sales to government customers, for example, plunged 41% year over year, largely because Fluor completed a power restoration project in Puerto Rico in the year-ago period. Meanwhile, energy and chemicals revenue slumped 21%. Those weak spots more than offset strength in the mining, industrial, infrastructure, and power segment, where revenue surged more than 50% from last year's first quarter due to increased project activities in mining and metals.
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The company reported an adjusted net loss of $19 million, or $0.14 per share, during the quarter. That came in a whopping $0.66 per share below the analysts' consensus. Because of that, the company reduced its full-year forecast to $1.50 to $2.00 per share. That's down sharply from its prior guidance of $2.50 to $3.00 per share.
Fluor also announced that Chairman and CEO David Seaton stepped down from those positions yesterday, though he will remain with the company through the transition. In the interim, Chief Legal Officer Carlos Hernandez will serve as CEO until the company identifies a permanent replacement.
Fluor unloaded lousy news on its investors. Not only did the company miss expectations by a wide margin, but it slashed its full-year forecast. On top of that, its CEO stepped down. The issues and uncertainty currently facing the company will likely keep the pressure on its stock price until it finds a new CEO and its results begin improving.
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