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Omar Venerio
Omar Venerio
Articles (1710) 

Friday Morning Market Highlights

Markets mixed, shares of Fluor fall as it restates 2019 results

US Markets

U.S. stocks were mixed on Friday, with global concerns about new record cases of Covid-19. The Dow advanced 0.15% to 26,775, the S&P 500 index lost 0.10% to 3,243 and the Nasdaq Composite Index was up 0.01%, to 10,672.

Gainers

• AAR Corp (NYSE:AIR) +10%

• Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) +7.5%

• Nikola Corporation (NASDAQ:NKLA) +5.6%

• Walmart (NYSE:WMT) +0.3%

Losers

• Under Armour, Inc. (NYSE:UA) -5.5%

• Rite Aid (NYSE:RAD) -4.7%

• Alibaba Group (NYSE:BABA) -1.7%

• Twitter (NYSE:TWTR) -0.8%

Global Markets

The main European stock markets traded in the red. The UK's FTSE 100 slipped 0.18%, France's CAC 40 fell 1.39%, Germany's Dax was down 1.71% and Spain's Ibex 35 swelled 0.80%.

In Asia, Japan's Nikkei 225 gained 0.51%, India's BSE Sensex advanced 2.28%, Hong Kong's Hang Seng lost 0.32% and China's Shanghai Composite was down 0.12%.

Fluor releases earnings restatement

Shares of Fluor Corporation (NYSE:FLR) fell 8% on Friday morning after the company announced a restatement of its financial results for the year ended Dec. 31, 2019. The company corrected its reported earnings for the year to a loss of $11.97 per share, falling short of analysts' estimates by $2.60. Revenue of $14.35 billion declined 5.4% compared to 2018 and fall short of expectations by $2.45 billion.

Chairman and CEO Carlos Hernandez had the following to say:

"Today's filing marks the culmination of a thorough review of the financial reporting on a significant number of our lump-sum projects. We agree with the findings of the special committee and are moving forward with our remediation plan… Fluor continues to have substantial liquidity and dedicated employees who are ready to tackle current and future challenges."

By segments, the Energy & Chemicals reported revenue of $5.8 billion, down from $7.7 billion in 2018. It registered a loss of $95 million in 2019 compared to a profit of $335 million in the previous year.

The Mining & Industrial segment reported a segment profit of $159 million, up from $94 million in 2018. Full year revenue for the segment of $5.1 billion was up from $3.5 billion in 2018. The Infrastructure & Power segment reported a segment loss of $244 million compared to a loss of $30 million a year ago. Full year revenue for the segment was $1.4 billion compared to $1.7 billion a year ago. The Diversified Services segment reported a segment profit of $15 million in 2019, compared to $69 million the prior year. Full year revenue was $2.0 billion compared to $2.3 billion in 2018.

HOTCHKIS & WILEY cut its investment in the company by 14% to 7,117,185 shares in the second quarter of 2019.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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