NEW YORK (TheStreet) -- Shares of Fluor (FLR) were falling 13.77% to $44.66 on heavy trading volume late Friday morning after reporting 2016 third-quarter results below analysts' expectations and cutting its full-year outlook.
After yesterday's market close, the Texas-based engineering construction company reported operating earnings of 3 cents per share, sharply below analysts' estimates of 87 cents per share.
Revenue climbed to $4.77 billion from $4.38 billion a year ago but missed analysts' projections of $4.99 billion.
The third-quarter results included a $154 million after-tax charge for estimated cost increases on a petrochemical facility, the company said in a statement.
Fluor consequently cut its full-year earnings outlook to between $2.20 and $2.40 per diluted share from between $3.25 and $3.50 per diluted share. The FactSet consensus is for earnings of $2.55 per share.
For 2017, Fluor anticipates earnings between $2.75 and $3.25 per diluted share, while analysts are looking for $3.17 for the year.
About 6.44 million shares of Fluor have been traded so far today, well above the company's average trading volume of roughly 1.15 million shares a day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Fluor's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance are countered by weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: FLR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.