Engineering and construction firm Fluor Corp. and contractor DynCorp International Inc. stand to benefit from the deployment of 30,000 more troops to Afghanistan, an analyst said Thursday.
Analyst Will Gabrielski of Broadpoint AmTech said in a note to clients that the two companies already have won contracts for work in Afghanistan "and are transitioning away" from another engineering and construction firm, KBR Inc., early next year.
Obama unveiled plans Tuesday night to send 30,000 more troops to Afghanistan, the largest expansion of the war since it began eight years ago.
Gabrielski said he does not believe that Fluor's 2010 earnings guidance accounted for a troop surge. He believes the potential impact of an increased U.S. presence in Afghanistan supports his view that the low midpoint of Fluor's 2010 EPS guidance "is achievable."
Irving, Texas-based Fluor issued earnings guidance Nov. 9 in the range of $3.20 to $3.60 per share based on recent project delays. On average, Wall Street analysts are forecasting profit of $3.44 per share.
Shares of Fluor gained 33 cents to $43.08 in afternoon trading. DynCorp, based in Falls Church, Va., rose 30 cents, or 2 percent, to $14.37.