Fluor Stock Up as Firm Posts 14% Jump in First-Quarter Earnings

Fluor Corp.’s stock price rose Wednesday after the engineering, construction and diversified services company posted higher first-quarter earnings and received favorable ratings from analysts.

Fluor’s stock rose $3.875 per share to $66 during heavy trading on the New York Stock Exchange.

The company said net earnings for the first fiscal quarter increased 14%, to $57.4 million, or 68 cents a share, from $50.3 million, or 61 cents a share, for the same period a year ago. Revenue for the quarter ended Jan. 31 rose 14%, to $2.4 billion from $2.1 billion.

The company said its executive compensation costs rose $3 million during the quarter because of a program linking pay to the performance of the company’s stock. Fluor’s stock price rose 19% during the quarter. The higher costs ate into the company’s operating profit, Fluor said.

Meanwhile, one analyst upgraded the stock and another reiterated a buy recommendation.

Fluor was added to the “priority list” at Goldman Sachs & Co. and reiterated as a long-term “buy” by analyst Jeanne G. Terrile at Merrill Lynch & Co.

Standard & Poor’s Equity Group analyst Leo Larkin said in a report that the company has “very positive” long-term growth prospects because of acquisitions and joint-venture programs.