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Quanta Services (PWR) Beats Q3 Earnings, Tweaks Guidance

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Quanta Services Inc. (PWR - Free Report) is a leading national provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. Over time, the company has grown organically and made strategic acquisitions to expand its geographic presence.

The company has been witnessing a solid rebound in its end markets, on the back of key growth drivers, like an aging grid, shifting generation mix and implementation of clean energy initiatives. The company’s decentralized and entrepreneurial business model has been driving growth in recent times. Also, favorable government regulations to generate significant incremental electric transmission investment are proving conducive to growth.

Despite these positives, PWR has been grappling with adverse weather conditions in recent times. Also, unfavorable timing of revenues and corresponding income contributions of certain projects remain concerns for the company’s operational results. In addition, fluctuations in timing of large projects have also been hurting the company’s financials over the last few quarters.

PWR has had a choppy earnings history in recent times. It has a negative average surprise of 4.5%, having missed the Zacks Consensus estimate thrice over the trailing four quarters.

Currently, PWR has a Zacks Rank #3 (Hold) but that could definitely change following its third-quarter 2017 earnings report, which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: PWR’s adjusted earnings came in at 63 cents per share, beating the Zacks Consensus Estimate of 59 cents.

Quanta Services, Inc. Price and EPS Surprise

 

Quanta Services, Inc. Price and EPS Surprise | Quanta Services, Inc. Quote

Revenue: Revenues of the company came in at $2,609 million, surpassing the Zacks Consensus Estimate of $2,305 million.

Key Stats: Concurrent with the third-quarter 2017 results, the company increased its full-year guidance. PWR now expects revenues to lie in the range of $9.25-$9.35 billion, compared with the previously guided range of $8.65-$9.05 billion. However, it tweaked its full-year adjusted earnings per share guidance from $1.92 to $2.10 to $1.90 to $2.00. The company also booked more than $200 million of new communications work during the quarter

Stock Price: PWR shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this PWR earnings report later!

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