We have issued an updated research report on Chicago Bridge & Iron Company N.V. CBI on Dec 28, 2015. The company has been riding high on new contract wins since the past few months.
December marked the maximum contract wins for Chicago Bridge & Iron Company. Some of the notable multi-million awards wins include a $2.8-billion contract with Oman Oil Refineries and Petroleum Industries Company to build a steam cracker package for the Liwa Plastics Industrial Complex Project in Oman; a contract worth $365 million from Lotte Chemical Louisiana, LLC to offer its construction services for a monoethylene glycol facility in Lake Charles, LA; and a multi-year extension for an existing $100-million contract that aims to provide long-term maintenance services at several specialty chemical facilities throughout the Gulf Coast region in the U.S.
Most recently too, the company got a contract from Hengli Petrochemical (Dalian) Refinery Co. Ltd for offering the license and engineering design of a under-construction grassroots propane and butane dehydrogenation unit in Liaoning Province, China; and a $200 million contract for providing maintenance and modification services at a nuclear generating station in the Northeast. Also, in the last two months, Chicago Bridge & Iron Company won many significant contracts including a $2.8 billion worth award from Oman Oil Refineries and Petroleum Industries Company to supply EPC services for the Liwa Plastics Industrial Complex Project in Sohar, Oman.
However, geopolitical uncertainties like slowdown in China, strengthening of the U.S. dollar, persistent volatility in oil prices and a stiff competitive environment might bother the company’s financials. Unfavorable economic conditions render the company vulnerable to cancellation or delay in execution of contracts.
Over the last 7 days, the Zacks Consensus Estimate for 2015 earnings per share upped by a penny to $5.83. For 2016, it dipped by 7 cents to $5.15. Consequently, the company carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other better-ranked stocks in the same sector include Dycom Industries Inc. DY, Sterling Construction Co. Inc. STRL and KBR, Inc. KBR. While Dycom carries a Zacks Rank #1 (Strong Buy), both Sterling Construction and KBR hold a Zacks Rank #2 (Buy).
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