Fluor's stock suffering biggest-ever selloff toward 15-year low after large surprise loss, revenue miss

Shares of Fluor Corp. plummeted 27% toward a 15-year low, and is headed for the biggest one-day selloff since it went public in December 2000, after the engineering and construction company reported a large surprise loss and revenue that fell well below expectations, and pulled its full-year guidance. The company reported late Thursday it swung to a net loss of $554.8 million, or $3.96 a share, from a profit of $114.8 million, or 82 cents a share, in the year-earlier period. The loss included a $714 million charge as a result of an operational and strategic review of the company's businesses. The loss missed the average analyst estimate for a net profit of 51 cents a share, according to FactSet. Revenue fell 16% to $4.09 billion, missing the FactSet consensus of $4.71 billion. "We understand the implications of the magnitude of these results," said Chief Executive Carlos Hernandez, while Executive Chairman Alan Boeckmann said on the post-earnings conference call that he was "extremely disappointed" in the results. Analyst Tahira Afzal at KeyBanc Capital said the charges suggest "deeper structural issues with additional bleeding likely," but said the scrutiny and initial structural changes made are "important steps in the right direction." The stock, on track to close at the lowest price since November 2004, has now tumbled 56.5% over the past 12 months, while the Dow Jones Industrial Average has gained 4.2%.

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