By CCN: Stocks are broadly tanking today, but Fluor, Inc., a Texas construction outfit, is leading the charge, with a roughly 24% loss by press time. The company lost 48 cents per share and announced the resignation of its 8-year CEO David Seaton. Fluor reported quarterly losses of over $54 million, an increase of 200%, compared with this time last year.
S&P 500 Company’s Earnings Report Triggers Immediate Sell-Off
Fluor was the S&P 500’s worst-performing stock today, as investors couldn’t get out fast enough. For the previous five days, the stock had been trading at around $40, with low volume – indicative of comfortable shareholders.
However, today’s volume spiked and the price dropped by more than $9 as the news of projected losses and the CEO’s departure spread. Fluor’s official earnings report reads, in part:
“The first quarter was a net loss attributable to Fluor of $58 million, or $0.42 per diluted share, compared to a net loss of $18 million, or $0.13 per diluted share a year ago. Earnings attributable to Fluor were negatively impacted by $39 million, or $0.28 per diluted share, as a result of restructuring charges, foreign exchange losses, and related tax impacts. Excluding these items, adjusted earnings attributable to Fluor for the first quarter was a net loss of $19 million, or a loss of $0.14 per diluted share. Consolidated segment profit for the quarter was $47 million compared to $52 million a year ago. First quarter revenue was $4.2 billion compared to $4.8 billion last year.”
Holdout S&P 500 traders may take some comfort in the fact that Fluor has reportedly secured several new contracts, in the multiple billions, saying:
“New awards for the quarter were $3.4 billion, including $1.3 billion in Mining, Industrial, Infrastructure & Power, $1 billion in Energy & Chemicals, $810 million in Diversified Services and $331 million in Government….