Fluor shares plunged in extended trading after the company said the item expects third-quarter revenue to come in below Wall Street expectations.
The company announced preliminary third-quarter results on Wednesday, saying the item expects revenue of about $4.6 billion. Analysts had projected third-quarter revenue of about $4.95 billion, according to a consensus estimate coming from Refinitiv.
The engineering along with construction company said its preliminary results include pre-tax charges related to two troubled projects. however the company also said which the item completed the sale of an investment, which resulted in a gain which was “much higher than expected.”
In a call with analysts, Fluor Chairman along with CEO David Seaton said he was “frustrated” along with said which the company has “done a lot of soul searching.”
He said, however, which the two projects which resulted in charges were bid by a team which “did not follow the rules.” Seaton said those people are no longer at Fluor. The CEO said which the company has revised some of its review processes, accordingly.
Seaton said Fluor’s project in Citrus County, Florida will be “taking us double the hours to do the work which the item will be taking us in Virginia to do the same thing.” He said which while he has had a lot of success within the past changing out management teams on flagging projects, “This particular one I have not been able to turn the tide on.”
The some other embattled project in Europe had a “significant payment” tied to an Oct. 5 deadline, which Seaton said Fluor missed.
“which day was worth a lot of money,” he said.
Despite these setbacks, Seaton said Fluor will be set to come out of an eight-year downturn. He said which he expects numbers to improve throughout 2019.
“We are seeing the light at the end of the tunnel along with the item’s not a train coming at us,” Seaton said.
He, however, declined to issue revised guidance along with said Fluor would likely report its outlook when the item releases finalized results on Nov. 1.
The stock fell 13 percent in after-hours trading. within the past 12 months, however, Fluor shares have climbed 32 percent as of Wednesday’s close.