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Quanta Services (PWR) Down 4.2% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Quanta Services, Inc. (PWR - Free Report) . Shares have lost about 4.2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is PWR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Quanta Servicesreported fourth-quarter 2017 adjusted earnings of 45 cents per share, surpassing the Zacks Consensus Estimate by a penny.
The company’s GAAP earnings from continuing operations came in at 72 cents, up 26.3% from the prior-year quarter’s 57 cents. Bottom-line growth can be attributable to a robust top line and sound execution of projects.
In full-year 2017, non-GAAP earnings from continuing operations came in at $1.97, up over 30.5% from the year-ago quarter tally of $1.51 per share.
Inside the Headlines
Total revenues in the quarter came in at $2,478.6 million, up an impressive 17.9% on a year-over-year basis. Additionally, the figure trumped the Zacks Consensus Estimate of $2,344 million. Impressive revenues growth at the Electric Power Infrastructure Services as well as Oil and Gas Infrastructure Services segments acted as the primary catalyst.
Of the total quarterly revenues, the Electric Power Infrastructure segment accounted for 63.5%, and the Oil and Gas Infrastructure segment represented 36.5%.
As per segments, revenues from Electric Power Infrastructure were up 22.8% year over year to $1,574.9 million. Oil and Gas Infrastructure segmental revenues increased 10.1% to $903.8 million.
In full-year 2017, the company posted revenues of $9.47 billion, up 23.8% year over year.
In the reported quarter, operating income came in at $53.6 million compared with the prior-year figure of $117.9 million.
At the end of Dec 31, 2017, Quanta Services’ consolidated total backlog totaled $6,446.2 million.
Liquidity
Quanta Services exited the quarter with cash and cash equivalents of $138.3 million, up from $112.2 million as of Dec 31, 2016. At quarter end, the company’s long-term debt and notes payable was $670.7 million, up from $353.6 million as of Dec 31, 2016.
Notable Developments
After the end of the quarter, Quanta Services secured two large diameter mainline pipeline projects in the United States’ Appalachian region. Moreover, in January 2018, the company signed a large electric transmission project contract in south Florida to offer construction services. This apart, in the same time period, the company acquired an electrical infrastructure services business and Northwest Lineman College, both of which are based in the United States.
In the reported quarter, Quanta Services made a repurchase of 1.4 million shares of common stock worth $50.0 million.
Guidance
Concurrent with the earnings release, Quanta Services provided its full-year 2018 earnings and revenues guidance. The company projects adjusted earnings per share from continuing operations in the range of $2.40-$2.80. For 2018, Quanta Services anticipates revenues in the band of $9.75–$10.25 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter.
At this time, PWR has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. The stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, PWR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Quanta Services (PWR) Down 4.2% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Quanta Services, Inc. (PWR - Free Report) . Shares have lost about 4.2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is PWR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Quanta Services Q4 Earnings & Revenues Beat Estimates
Quanta Servicesreported fourth-quarter 2017 adjusted earnings of 45 cents per share, surpassing the Zacks Consensus Estimate by a penny.
The company’s GAAP earnings from continuing operations came in at 72 cents, up 26.3% from the prior-year quarter’s 57 cents. Bottom-line growth can be attributable to a robust top line and sound execution of projects.
In full-year 2017, non-GAAP earnings from continuing operations came in at $1.97, up over 30.5% from the year-ago quarter tally of $1.51 per share.
Inside the Headlines
Total revenues in the quarter came in at $2,478.6 million, up an impressive 17.9% on a year-over-year basis. Additionally, the figure trumped the Zacks Consensus Estimate of $2,344 million. Impressive revenues growth at the Electric Power Infrastructure Services as well as Oil and Gas Infrastructure Services segments acted as the primary catalyst.
Of the total quarterly revenues, the Electric Power Infrastructure segment accounted for 63.5%, and the Oil and Gas Infrastructure segment represented 36.5%.
As per segments, revenues from Electric Power Infrastructure were up 22.8% year over year to $1,574.9 million. Oil and Gas Infrastructure segmental revenues increased 10.1% to $903.8 million.
In full-year 2017, the company posted revenues of $9.47 billion, up 23.8% year over year.
In the reported quarter, operating income came in at $53.6 million compared with the prior-year figure of $117.9 million.
At the end of Dec 31, 2017, Quanta Services’ consolidated total backlog totaled $6,446.2 million.
Liquidity
Quanta Services exited the quarter with cash and cash equivalents of $138.3 million, up from $112.2 million as of Dec 31, 2016. At quarter end, the company’s long-term debt and notes payable was $670.7 million, up from $353.6 million as of Dec 31, 2016.
Notable Developments
After the end of the quarter, Quanta Services secured two large diameter mainline pipeline projects in the United States’ Appalachian region. Moreover, in January 2018, the company signed a large electric transmission project contract in south Florida to offer construction services. This apart, in the same time period, the company acquired an electrical infrastructure services business and Northwest Lineman College, both of which are based in the United States.
In the reported quarter, Quanta Services made a repurchase of 1.4 million shares of common stock worth $50.0 million.
Guidance
Concurrent with the earnings release, Quanta Services provided its full-year 2018 earnings and revenues guidance. The company projects adjusted earnings per share from continuing operations in the range of $2.40-$2.80. For 2018, Quanta Services anticipates revenues in the band of $9.75–$10.25 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter.
Quanta Services, Inc. Price and Consensus
Quanta Services, Inc. Price and Consensus | Quanta Services, Inc. Quote
VGM Scores
At this time, PWR has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. The stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, PWR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.