Back to top

Analyst Blog

Quanta Services Inc. (PWR - Analyst Report) released first-quarter 2013 results with GAAP earnings per share of 34 cents beating the Zacks Consensus Estimate of 29 cents by 17.2% as well as the prior-year earnings of 22 cents by 54.5%.

Non-GAAP earnings in the reported quarter were 38 cents a share, up 31.0% from the Zacks Consensus Estimate of 29 cents a share. The reported figure was also 46.2% higher than the prior-year quarter. Profits were primarily driven by increasing demand for the company’s services.

Revenue

Total revenue for the quarter was $1.59 billion, up 19.3% from $1.33 billion in the prior-year quarter, aided by increased revenues from the company’s Electric Power Infrastructure Services segment. Quanta reported revenue growth across all of its operating segments.

Segment Details

Electric Power revenues in the quarter were $1.2 billion, up 26.7% from $932 million in the prior-year period. Revenues during the quarter were positively impacted by higher revenues from electric power transmission projects and solar power generation projects as a result of increased capital spending by customers. The segment had a backlog of $132.5 million compared to $114.2 million in the prior-year quarter.  

Natural Gas and Pipeline revenues came in at $358.9 million, flat year over year as the increased project costs as a result of performance issues caused by adverse weather conditions on certain projects. The segment had a backlog of $10.4 million compared to negative $10.5 million in the prior-year quarter

Fiber Optic Licensing revenues were up 15.7% to $45.8 million from $39.5 million in the comparable quarter last year. The segment had a backlog of $16.9 million compared to $14.5 million in the prior-year quarter

Income and Expenses

Operating income in the quarter was $119.2 million compared to $78.8 million in the prior-year quarter, reflecting an increase of 51.4%. SG&A expense was $113.7 million compared to $98.1 million in the comparable quarter last year.

Balance Sheet and Cash Flow

Cash and cash equivalents at the end of the quarter were $366.6 million and shareholders’ equity was $3.83 billion.

Capital expenditures were approximately $56 million, which resulted in $12 million in negative free cash flow for the first quarter of 2013 compared with $104 million in negative free cash flow for the first quarter of 2012.

Outlook

Quanta is positive about its performance going forward. Quanta expects revenues for the second quarter of 2013 to be in the range of $1.45 billion to $1.55 billion. GAAP earnings are expected to be in the range of 30 cents to 32 cents while non-GAAP earnings for the quarter are projected in the range of 35 cents to 37 cents.

Quanta expects revenues for the full year 2013 to range between $5.9 billion and $6.3 billion. GAAP earnings for the year are expected to be in the range of $1.20 and $1.40 per share and non-GAAP earnings are expected to range from $1.37 to $1.57 per share.

Quanta currently has a Zacks Rank #3 (Hold). However, some other players operating in the same industry and worth considering are Chicago Bridge & Iron (CBI - Analyst Report), Orion Marine Group Inc. (ORN - Snapshot Report) and Fluor Corporation (FLR - Analyst Report), all having Zacks Rank #2 (Buy). 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%