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Showing posts with label KBR. Show all posts
Showing posts with label KBR. Show all posts
Wednesday, July 11, 2012
Investopedia: Regulation Likely To Always Weigh On Shaw
It's hard to maintain a lot of enthusiasm for engineering and construction (E&C) companies like Shaw Group (NYSE:SHAW).
By their very nature, large projects take a long time to design, permit
and execute, and there is enough competition in the industry to prevent
anyone from making especially attractive economic returns for a long
time. That said, I do not believe Shaw's valuation
reflects the steps that the company has taken to reduce the risk of its
operations, nor the long-term realities of electricity demand.
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Thursday, December 22, 2011
Investopedia: Shaw Has Value, But Needs A Spark
Value traps can drive investors to distraction; nothing is quite as frustrating as owning a quality company but seeing the market ignore its long-term virtues because of short-term challenges. Such could be said for Shaw Group (Nasdaq:SHAW). Although the construction of new nuclear plants looks like a non-starter, the company still has a key position in servicing existing plants, not to mention ongoing opportunities in markets like environmental remediation for utilities and more general industrial and manufacturing construction. The question for investors, though, is how much pain they can tolerate in the short run as capex spending seems to be stuck on pause.
A Decent Start to the Year
Shaw gave some encouragement to its shareholders on Wednesday morning with its earnings release. Revenue fell 2% from the year-ago level, but was in line with analyst expectation. Although the company picked up some business in the Mideast and Latin America, Asia and Europe were notably weaker. Within the segments, not a lot changed - the company's large power business saw revenue fall about 2%, while plant service and environmental/infrastructure traded off above-average and below-average growth.
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A Decent Start to the Year
Shaw gave some encouragement to its shareholders on Wednesday morning with its earnings release. Revenue fell 2% from the year-ago level, but was in line with analyst expectation. Although the company picked up some business in the Mideast and Latin America, Asia and Europe were notably weaker. Within the segments, not a lot changed - the company's large power business saw revenue fall about 2%, while plant service and environmental/infrastructure traded off above-average and below-average growth.
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Thursday, July 28, 2011
Investopedia: CB&I Harnessing Some Energy
These are bad days for large-scale construction, right? High debt and low tax revenue is hampering public works projects and manufacturing companies have little need to add capacity just yet. Likewise, construction activity in the leisure sector (hotels, casinos, and so on) has yet to pick up. On top of that, power generation is caught between those who hate the idea of more coal plants and those who really hate the idea of more nuclear plants.
Well, yes and no. Construction activity in those segments is indeed weak, but there is a notable exception - the oil and gas sector. And that is where CB&I (NYSE:CBI) (formerly known as Chicago Bridge & Iron) makes its bread and butter; building a wide range of facilities like storage tanks, processing plants, liquefaction facilities and terminals.
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Well, yes and no. Construction activity in those segments is indeed weak, but there is a notable exception - the oil and gas sector. And that is where CB&I (NYSE:CBI) (formerly known as Chicago Bridge & Iron) makes its bread and butter; building a wide range of facilities like storage tanks, processing plants, liquefaction facilities and terminals.
To read the full article, please click below:
http://stocks.investopedia.
Wednesday, July 28, 2010
Has Fluor Built Its Foundation?
Last week, we heard from Nucor (NYSE:NUE) and Steel Dynamics (Nasdaq:STLD), and both companies were pretty cautious about business conditions in the second half of 2010. Since both companies are leveraged to commercial construction, that is relevant. The engineering and construction industry, though, looks as though it might be building a base and perhaps getting ready to rebound.
Analysts seem relatively confident that capital spending is going to resume in the energy market, mining projects continue to go forward, and there is a general assumption that we are seeing the worst in the government-funded infrastructure business (so it will start to get better).
Interestingly, Fluor's (NYSE:FLR) stock tracks those steelmakers relatively closely, so who should we believe? Are the engineering companies (and steel) simply building a base for a second half rally, or are we looking at a sluggish environment for the next six months?
To read the full column, please go to:
http://stocks.investopedia.
Analysts seem relatively confident that capital spending is going to resume in the energy market, mining projects continue to go forward, and there is a general assumption that we are seeing the worst in the government-funded infrastructure business (so it will start to get better).
Interestingly, Fluor's (NYSE:FLR) stock tracks those steelmakers relatively closely, so who should we believe? Are the engineering companies (and steel) simply building a base for a second half rally, or are we looking at a sluggish environment for the next six months?
To read the full column, please go to:
http://stocks.investopedia.
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