Leading engineering and construction firm, Fluor Corporation FLR clinched a contract from SunCoke Energy, Inc. SXC to offer certain maintenance support and capital project services at its coke facilities in the U.S. The contract of undisclosed value has been booked in first-quarter 2017 and spans over a period of five years.
Per the latest contract, Fluor will transition onto the sites in early Mar 2017 and work alongside SunCoke employees. SunCoke will leverage on Fluor’s asset performance management process to slash its ownership costs. Fluor and its operating unit – Stork – are in charge of providing delivery, maintenance, modification and asset integrity services to clients.
Post the acquisition of the Dutch engineering and construction company – Stork – in 2016, Fluor has fortified its presence across multiple sites. During the reported quarter, Maintenance, Modification & Asset Integrity revenues were up 81.8% year over year, largely benefiting from the Stork buyout which bolstered sales at the Global Services unit.
Fluor has a solid track record of receiving awards and strives hard to complete all its projects on schedule. Over the past three months, the stock returned 6.4%, way better than the Zacks classified Engineering/R&D Services industry’s average return of 1.1%. At the end of 2016, the company’s consolidated backlog was $45.0 billion, up from $44.7 billion in the year-ago quarter.
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Going forward, this Zacks Rank #3 (Hold) company believes that the surprise victory of Donald Trump will prove extremely beneficial. Especially, it expects the infrastructure market to witness significant improvement leading to new award wins and backlog growth, which should contribute to growth over the long term.
Stocks to Consider
Better-ranked stocks in the broader sector include II-VI Incorporated IIVI and Applied Industrial Technologies Inc. AIT. While II-VI Incorporated sports a Zacks Rank #1 (Strong Buy), Applied Industrial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
II-VI Incorporated has registered a remarkable positive average surprise of over 59.2% for the last four quarters, driven by four back-to-back beats.
Applied Industrial Technologies has managed to beat estimates thrice in the trailing four quarters, the average positive earnings surprise being 6.2%.
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