By Anil K. Ambastha and Kuldip K. Ambastha
The second-quarter earnings report and guidance process parade is continuing. This week, reports from engineering and construction companies such as McDermott International (MDR) and Fluor Corporation (FLR) reflected large losses, revenue misses, and uncertain futures.
Following its earnings report, shares of McDermott International (MDR) dropped 35.3% on July 30. For the remainder of the week, shares of McDermott International (MDR) dropped a further 17.5% for a total weekly loss of 46.6%. Similarly, shares of Fluor Corporation (FLR) dropped 26.7% on August 2 after its earnings report that marked its biggest one-day share price drop ever since its initial public offering (IPO) in December 2000. Fluor Corporation’s (FLR) stock is now trading at close to a 15-year low.
Keywords – Second-quarter, Earnings, Engineering, Construction, Revenue miss, Uncertain future, Forecast, Guidance.
Disclosure – The principals of Ambastha Financial LLC have short option and long equity positions in FLR. They have no position in MDR.
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