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Quanta Services (PWR) Q4 Earnings Miss, Posts Record Sales

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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. The company has grown organically and made strategic acquisitions to expand its geographic presence and scope of services, along with developing new capabilities to meet its customers evolving needs.

Quanta Services has been strongly benefiting from pursuing its diligent three-pronged growth strategy. It focuses on the timely delivery of projects, leveraging on its core business areas to expand in complementary service lines and venturing into new service lines. The company’s decentralized and entrepreneurial business model has aided it in combating some of the most pressing macroeconomic challenges, thus driving growth in recent times.

Of late, 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. Also, favorable government regulations, such as the EPA's Clean Power Plan and Federal Energy Regulatory Commission (“FERC”) Order 1000 to generate significant incremental electric transmission investment, are proving conducive to growth.

The company has had a choppy earnings history. It missed the Zacks Consensus Estimate in two of the trailing four quarters with a negative average surprise of 14.3%.

Quanta Services, Inc. Price, Consensus and EPS Surprise

Currently, PWR has a Zacks Rank #3 (Hold) but that could definitely change following its fourth-quarter 2016 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 stats from this just-revealed announcement below:

Earnings: PWR’s adjusted earnings came in at 52 cents per share, missing the Zacks Consensus Estimate of 54 cents.

Revenue: Revenues of the company came in at $2,103 million, slightly lagging the Zacks Consensus Estimate of $2,161 million.

Key Stats: PWR reported record fourth-quarter revenues and also a record twelve-month backlog. Going forward, the company is hopeful about the multi-year growth opportunities that it is witnessing in both electric power and oil and gas infrastructure services markets.

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

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