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Quanta Services Inc. (PWR - Analyst Report) reported second-quarter 2013 GAAP earnings per share of 33 cents, a penny below the Zacks Consensus Estimate of 34 cents. However, quarterly earnings surpassed the prior-year earnings of 27 cents by 22.2%.

Non-GAAP earnings (excluding the one-time items) for the reported quarter were 38 cents a share, 11.8% above the Zacks Consensus Estimate. The reported figure was also 18.6% higher than the prior-year quarter. Profits were primarily driven by increasing demand for the company’s services.

Revenues

Total revenue for the quarter was $1.59 billion, up 6.4% to $1.47 billion from $1.38 billion in the prior-year quarter, aided by increased revenues from the company’s Electric Power Infrastructure Services segment. Quanta reported revenue growth in all three of its operating segments.

Segment Details

Electric Powerrevenues in the quarter were $1.04 billion, up 4.0% from $1.00 billion in the prior-year period. The Electric Power segment continued to experience increased demand for electric transmission and distribution services, as the electric power industry is investing at record levels to upgrade and modernize North America's power grid. In addition, regulations to improve Red reliability, renewable interconnections, and the impact of switching to gas generation are expected to continue to drive the power industry's investments and electric infrastructure over the long term. The segment had a backlog of $2.7 billion compared with $2.8 billion in the prior-year period.

Natural Gas and Pipelinerevenues came in at $385.9 million, reflecting a 14.3% increase year over year. This growth was driven by demand for pipeline services to support shale gathering infrastructure that was strong during the second quarter. The segment received close to about $550 million from mainline pipe projects from four customers. The segment had a backlog of $968.9 million compared with $828.6 million in the prior-year period.

Fiber Optic Licensingrevenues declined 1.0% to $42.1 million from $42.5 million in the comparable quarter last year. The segment had a backlog of $127.9 million compared with $130.4 million in the prior-year quarter.

Income and Expenses

Operating income in the quarter was $117.2 million compared with $98.3 million in the prior-year quarter, reflecting an increase of 19.1%. SG&A expense was $119.0 million compared with $105.2 million in the comparable quarter last year.

Balance Sheet and Cash Flow

Cash and cash equivalents at the end of the quarter were $363.1 million and shareholders’ equity was $3.88 billion.

Outlook

Quanta is positive about its performance going forward. Quanta expect revenues for the third quarter of 2013 to be in the range of $1.65 billion to $1.75 billion. Non-GAAP earnings for the quarter are projected in the range of 43 cents to 45 cents.

Quanta expects revenues for full year 2013 to range between $6.2 billion and $6.5 billion compared with $5.9 billion and $6.3 billion. Non-GAAP earnings are expected to range from $1.35 to $ 1.45 compared with $1.37 to $1.57 mentioned earlier.

Quanta currently has a Zacks Rank #3 (Hold). However, some other players operating in the same industry and worth considering are Lennox International, Inc. (LII - Snapshot Report)) and Mertiage Homes Corporation (MTH - Snapshot Report) carrying a Zacks Rank #1 (Strong Buy). Ryland Group Inc. (RYL - Snapshot Report) is also worth a look with a Zacks Rank #2 (Buy).

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