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Quanta Services (PWR) Q2 Earnings & Revenues Top, View Up
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Quanta Services Inc. (PWR - Free Report) reported second-quarter 2021 results, wherein adjusted earnings and revenues not only surpassed the Zacks Consensus Estimate but also grew impressively on a year-over-year basis, courtesy of solid performance of the Electric Power Infrastructure Solutions segment.
Positive investor sentiments were witnessed as shares of the company gained 0.07% during the pre-market trading session on Aug 5.
Duke Austin, President and Chief Executive Officer of Quanta, said, "Our customers' multi-year programs to modernize and harden utility infrastructure, along with their efforts to achieve carbon-neutrality through increased renewable generation investment and electrification trends such as electric vehicles (EV), continue to drive demand for our services and present incremental growth opportunities.”
Quanta Services, Inc. Price, Consensus and EPS Surprise
For the quarter under review, Quanta Services’ adjusted earnings of $1.06 per share comfortably topped the consensus estimate of $1.00 by 6% and increased 43.2% from 74 cents a year ago.
Total revenues of $2,999.8 million surpassed the consensus mark of $2,939 million by 2.1%. The figure increased 19.7% year over year due to higher contribution from both of its segments.
Operating margin for the quarter rose 90 basis points or bps from a year ago to 5.4%. Adjusted EBITDA of $281.3 million also improved 31.3% from a year ago.
The company reported 12-month backlog of $8,987.9 million and total backlog of $16,977.6 million at June 2021-end. At December 2020-end, 12-month backlog came in at $8,266.6 million and total backlog was $15,132.4 million. At June 2020-end, the figures came in at $7,660.5 million and $13,928.2 million, respectively.
Segment Details
It reports results under two reportable segments: Electric Power Infrastructure Solutions segment (accounting for 71.6% of second-quarter revenues), and Underground Utility and Infrastructure Solutions (28.4%).
Second-quarter revenues from Electric Power Infrastructure Services totaled $2,147.8 million, increasing 19.8% year over year. Operating margins expanded 70 bps to 11%. The segment’s 12-month backlog was $6,504.3 million, up from $5,338.1 million a year ago. Total backlog of $12,638.6 million also grew from $9,684.3 million reported in the prior-year quarter.
The Underground Utility and Infrastructure Solutions segment’s revenues improved 19.4% from the prior-year quarter to $852. million. Operating margin of 2.8%, however, contracted 20 bps year over year. Nonetheless, the segment’s 12-month backlog totaled $2,474.6 million, up from $2,322.4 million a year ago. Total backlog also improved to $4,339 million from $4,243.9 million in the prior-year quarter.
Liquidity
As of Jun 30, 2021, Quanta Services had cash and cash equivalents of $212.5 million, up from $184.6 million at 2020-end. The company’s long-term debt (net of current maturities) amounted to $1,353.5 million, up from $1,174.3 million as of Dec 31, 2020.
Net cash provided by operating activities was $188.9 million for the quarter compared with $497.5 million a year ago. Free cash flow for the quarter came in at $125.8 million compared with $457.2 million reported in second-quarter 2020.
2021 Guidance Raised
Based on year-to-date performance and increasing visibility, Quanta Services now expects revenues between $12.20 billion and $12.45 billion versus earlier expectation of $12.05-$12.35 billion.
It expects adjusted earnings between $4.32 and $4.68 versus $4.12-$4.57 per share projected earlier. Adjusted EBITDA is projected within $1.13-$1.21 billion versus prior projection of $1.10-$1.20 billion. Meanwhile, Quanta Services’ full-year non-GAAP free cash flow projection has been reaffirmed within $400-$600 million.
KBR, Inc. (KBR - Free Report) reported impressive second-quarter 2021 results, wherein earnings and revenues topped the Zacks Consensus Estimate. The company benefited from solid Government Solutions organic growth, strong execution across the business and the acquisition of Centauri.
Jacobs Engineering Group Inc. (J - Free Report) reported third-quarter fiscal 2021 (ended Jul 2, 2021) results, wherein earnings and revenues beat the Zacks Consensus Estimate driven by solid project execution. In fact, both the metrics surpassed the consensus mark for the sixth consecutive quarter. Jacobs has also lifted fiscal 2021 outlook, given disciplined execution.
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Quanta Services (PWR) Q2 Earnings & Revenues Top, View Up
Quanta Services Inc. (PWR - Free Report) reported second-quarter 2021 results, wherein adjusted earnings and revenues not only surpassed the Zacks Consensus Estimate but also grew impressively on a year-over-year basis, courtesy of solid performance of the Electric Power Infrastructure Solutions segment.
Positive investor sentiments were witnessed as shares of the company gained 0.07% during the pre-market trading session on Aug 5.
Duke Austin, President and Chief Executive Officer of Quanta, said, "Our customers' multi-year programs to modernize and harden utility infrastructure, along with their efforts to achieve carbon-neutrality through increased renewable generation investment and electrification trends such as electric vehicles (EV), continue to drive demand for our services and present incremental growth opportunities.”
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta Services, Inc. price-consensus-eps-surprise-chart | Quanta Services, Inc. Quote
Detailed Discussion
For the quarter under review, Quanta Services’ adjusted earnings of $1.06 per share comfortably topped the consensus estimate of $1.00 by 6% and increased 43.2% from 74 cents a year ago.
Total revenues of $2,999.8 million surpassed the consensus mark of $2,939 million by 2.1%. The figure increased 19.7% year over year due to higher contribution from both of its segments.
Operating margin for the quarter rose 90 basis points or bps from a year ago to 5.4%. Adjusted EBITDA of $281.3 million also improved 31.3% from a year ago.
The company reported 12-month backlog of $8,987.9 million and total backlog of $16,977.6 million at June 2021-end. At December 2020-end, 12-month backlog came in at $8,266.6 million and total backlog was $15,132.4 million. At June 2020-end, the figures came in at $7,660.5 million and $13,928.2 million, respectively.
Segment Details
It reports results under two reportable segments: Electric Power Infrastructure Solutions segment (accounting for 71.6% of second-quarter revenues), and Underground Utility and Infrastructure Solutions (28.4%).
Second-quarter revenues from Electric Power Infrastructure Services totaled $2,147.8 million, increasing 19.8% year over year. Operating margins expanded 70 bps to 11%. The segment’s 12-month backlog was $6,504.3 million, up from $5,338.1 million a year ago. Total backlog of $12,638.6 million also grew from $9,684.3 million reported in the prior-year quarter.
The Underground Utility and Infrastructure Solutions segment’s revenues improved 19.4% from the prior-year quarter to $852. million. Operating margin of 2.8%, however, contracted 20 bps year over year. Nonetheless, the segment’s 12-month backlog totaled $2,474.6 million, up from $2,322.4 million a year ago. Total backlog also improved to $4,339 million from $4,243.9 million in the prior-year quarter.
Liquidity
As of Jun 30, 2021, Quanta Services had cash and cash equivalents of $212.5 million, up from $184.6 million at 2020-end. The company’s long-term debt (net of current maturities) amounted to $1,353.5 million, up from $1,174.3 million as of Dec 31, 2020.
Net cash provided by operating activities was $188.9 million for the quarter compared with $497.5 million a year ago. Free cash flow for the quarter came in at $125.8 million compared with $457.2 million reported in second-quarter 2020.
2021 Guidance Raised
Based on year-to-date performance and increasing visibility, Quanta Services now expects revenues between $12.20 billion and $12.45 billion versus earlier expectation of $12.05-$12.35 billion.
It expects adjusted earnings between $4.32 and $4.68 versus $4.12-$4.57 per share projected earlier. Adjusted EBITDA is projected within $1.13-$1.21 billion versus prior projection of $1.10-$1.20 billion. Meanwhile, Quanta Services’ full-year non-GAAP free cash flow projection has been reaffirmed within $400-$600 million.
Zacks Rank & Peer Releases
Quanta Services, which shares space with AECOM (ACM - Free Report) in the Zacks Engineering - R and D Services industry, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KBR, Inc. (KBR - Free Report) reported impressive second-quarter 2021 results, wherein earnings and revenues topped the Zacks Consensus Estimate. The company benefited from solid Government Solutions organic growth, strong execution across the business and the acquisition of Centauri.
Jacobs Engineering Group Inc. (J - Free Report) reported third-quarter fiscal 2021 (ended Jul 2, 2021) results, wherein earnings and revenues beat the Zacks Consensus Estimate driven by solid project execution. In fact, both the metrics surpassed the consensus mark for the sixth consecutive quarter. Jacobs has also lifted fiscal 2021 outlook, given disciplined execution.