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Quanta (PWR) Q4 Earnings & Revenues Top Estimates, Stock Rises
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Quanta Services Inc. (PWR - Free Report) reported impressive earnings for fourth-quarter 2021. Adjusted earnings and revenues not only surpassed the Zacks Consensus Estimate but also grew impressively on a year-over-year basis. Earnings beat the consensus mark for the seventh straight quarter, whereas revenues surpassed the same in four out of seven consecutive quarters.
The stock gained 1.71% in the pre-market trading session on Feb 24, post its earnings release.
With respect to the expectations for the current year, Duke Austin, president and chief executive officer of Quanta, highlighted, "Our 2022 expectations reflect growth in revenues, net income, adjusted EBITDA and adjusted earnings per share. Demand is strong for our infrastructure solutions that support our customers' energy-transition initiatives and that increase reliability, safety, efficiency and connectivity through modernization, which we believe will continue to provide multi-year growth opportunities. We are successfully executing on our strategic growth initiatives, which, coupled with our strong financial profile, position us well to continue to deliver value to stockholders."
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta reported adjusted earnings of $1.54 per share, which surpassed the consensus estimate of $1.41 by 9.2% and increased 26.2% from the year-ago profit level of $1.22. The upside was backed by record revenues and strong margins at the Electric Power Infrastructure Solutions segment owing to solid and safe execution, high utilization as well as record levels of emergency response activity.
Total revenues of $3.92 billion surpassed the consensus mark of $3.66 billion by 6.5% and increased 34.7% year over year.
Operating margin for the quarter fell 240 basis points (bps) to 3.6% from a year ago to 6%. Adjusted EBITDA of $390.8 million, however, improved 22.2% from $319.8 million a year ago.
The company reported 12-month backlog of $11.31 billion and total backlog of $19.27 billion at December 2021-end. At December 2020-end, 12-month backlog came in at $8.27 billion and total backlog was $15.13 billion. The reported metrics were also up from third-quarter end respective figures of $9.76 billion and $17.02 billion.
Segment Details
It reports results under three reportable segments: Electric Power Infrastructure Solutions segment (accounting for 58.7% of 2021 revenues), Renewable Energy Infrastructure Solutions (14.1%) and Underground Utility and Infrastructure Solutions (27.2%).
Revenues from Electric Power Infrastructure Solutions totaled $2.14 billion, increasing 22.7% year over year. Operating margin expanded 130 bps to 11.8%. The segment’s 12-month backlog was $6.49 billion, up from $5.26 billion a year ago. Total backlog of $12.22 billion also grew from $9.67 billion reported in the prior-year period.
Revenues from Renewable Energy Infrastructure Solutions totaled $777.5 million, up 112.9% year over year. Operating margins, however, contracted to 9.1% from 17.2% a year ago. The segment’s 12-month backlog was $2.24 billion, up from $813.1 million a year ago. Total backlog of $2.55 billion also grew from $1.31 billion reported in 2020.
Within the Underground Utility and Infrastructure Solutions segment, revenues rose 25.3% from the prior-year quarter to $1.01 billion. Yet, operating margin of 4.9% contracted 20 bps year over year. Segment’s 12-month backlog totaled $2.57 billion, up from $2.2 billion a year ago. Total backlog grew to $4.51 billion from $4.15 billion in the prior year.
Full-Year 2021 Highlights
Adjusted earnings came in at $4.92 per share, reflecting an increase of 28.8% from the 2020 level.
Liquidity
As of Dec 31, 2021, Quanta had cash and cash equivalents of $229.1 million, up from $184.6 million at 2020-end. The company’s long-term debt (net of current maturities) amounted to $3.72 billion, up from $1.17 billion as of Dec 31, 2020.
Net cash provided by operating activities was $582.4 million for 2021 compared with $1,116 million a year ago. Free cash flow for 2021 came in at $246.3 million versus $891.9 million reported in 2020.
2022 Guidance
Quanta now expects revenues between $16 billion and $16.50 billion versus the consensus mark of $15.58 billion.
It expects adjusted (non-GAAP) earnings between $6.00 and $6.50 and the Zacks Consensus Estimate is currently pegged at $6.16 per share. Adjusted EBITDA is projected within $1.59-$1.70 billion. Net income is expected within $530-$604 million. Meanwhile, Quanta’s full-year non-GAAP free cash flow projection is pegged at $650-$850 million.
Fluor Corporation (FLR - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues lagged the same. Earnings beat the Zacks Consensus Estimate for the fourth straight quarter, whereas revenues missed the same for the sixth consecutive quarter.
Fluor's total new awards for 2021 came in at $8.8 billion compared with $9 billion in 2020. Consolidated backlog for the year came in at $18.9 billion, down from $25.6 billion in 2020.
UFP Industries, Inc. (UFPI - Free Report) reported fourth-quarter 2021 results, wherein earnings and net sales beat the Zacks Consensus Estimate as well as improved impressively on a year-over-year basis.
With this, UFPI’s earnings and sales surpassed the consensus mark in the trailing four quarters. The uptrend was mainly driven by the diversity of markets and an improved pricing model.
Louisiana-Pacific Corporation (LPX - Free Report) — commonly known as LP — reported impressive results for fourth-quarter 2021. Both the top and the bottom line surpassed the Zacks Consensus Estimate and grew on a year-over-year basis.
For first-quarter 2022, LP expects Siding Solutions revenue growth of 10% from the year-ago period. OSB revenues are expected to sequentially rise 40%. It anticipates consolidated adjusted EBITDA of more than $500 million, suggesting a rise from $461 million reported a year ago.
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Quanta (PWR) Q4 Earnings & Revenues Top Estimates, Stock Rises
Quanta Services Inc. (PWR - Free Report) reported impressive earnings for fourth-quarter 2021. Adjusted earnings and revenues not only surpassed the Zacks Consensus Estimate but also grew impressively on a year-over-year basis. Earnings beat the consensus mark for the seventh straight quarter, whereas revenues surpassed the same in four out of seven consecutive quarters.
The stock gained 1.71% in the pre-market trading session on Feb 24, post its earnings release.
With respect to the expectations for the current year, Duke Austin, president and chief executive officer of Quanta, highlighted, "Our 2022 expectations reflect growth in revenues, net income, adjusted EBITDA and adjusted earnings per share. Demand is strong for our infrastructure solutions that support our customers' energy-transition initiatives and that increase reliability, safety, efficiency and connectivity through modernization, which we believe will continue to provide multi-year growth opportunities. We are successfully executing on our strategic growth initiatives, which, coupled with our strong financial profile, position us well to continue to deliver value to stockholders."
Quanta Services, Inc. Price, Consensus and EPS Surprise
Quanta Services, Inc. price-consensus-eps-surprise-chart | Quanta Services, Inc. Quote
Detailed Discussion
Quanta reported adjusted earnings of $1.54 per share, which surpassed the consensus estimate of $1.41 by 9.2% and increased 26.2% from the year-ago profit level of $1.22. The upside was backed by record revenues and strong margins at the Electric Power Infrastructure Solutions segment owing to solid and safe execution, high utilization as well as record levels of emergency response activity.
Total revenues of $3.92 billion surpassed the consensus mark of $3.66 billion by 6.5% and increased 34.7% year over year.
Operating margin for the quarter fell 240 basis points (bps) to 3.6% from a year ago to 6%. Adjusted EBITDA of $390.8 million, however, improved 22.2% from $319.8 million a year ago.
The company reported 12-month backlog of $11.31 billion and total backlog of $19.27 billion at December 2021-end. At December 2020-end, 12-month backlog came in at $8.27 billion and total backlog was $15.13 billion. The reported metrics were also up from third-quarter end respective figures of $9.76 billion and $17.02 billion.
Segment Details
It reports results under three reportable segments: Electric Power Infrastructure Solutions segment (accounting for 58.7% of 2021 revenues), Renewable Energy Infrastructure Solutions (14.1%) and Underground Utility and Infrastructure Solutions (27.2%).
Revenues from Electric Power Infrastructure Solutions totaled $2.14 billion, increasing 22.7% year over year. Operating margin expanded 130 bps to 11.8%. The segment’s 12-month backlog was $6.49 billion, up from $5.26 billion a year ago. Total backlog of $12.22 billion also grew from $9.67 billion reported in the prior-year period.
Revenues from Renewable Energy Infrastructure Solutions totaled $777.5 million, up 112.9% year over year. Operating margins, however, contracted to 9.1% from 17.2% a year ago. The segment’s 12-month backlog was $2.24 billion, up from $813.1 million a year ago. Total backlog of $2.55 billion also grew from $1.31 billion reported in 2020.
Within the Underground Utility and Infrastructure Solutions segment, revenues rose 25.3% from the prior-year quarter to $1.01 billion. Yet, operating margin of 4.9% contracted 20 bps year over year. Segment’s 12-month backlog totaled $2.57 billion, up from $2.2 billion a year ago. Total backlog grew to $4.51 billion from $4.15 billion in the prior year.
Full-Year 2021 Highlights
Adjusted earnings came in at $4.92 per share, reflecting an increase of 28.8% from the 2020 level.
Liquidity
As of Dec 31, 2021, Quanta had cash and cash equivalents of $229.1 million, up from $184.6 million at 2020-end. The company’s long-term debt (net of current maturities) amounted to $3.72 billion, up from $1.17 billion as of Dec 31, 2020.
Net cash provided by operating activities was $582.4 million for 2021 compared with $1,116 million a year ago. Free cash flow for 2021 came in at $246.3 million versus $891.9 million reported in 2020.
2022 Guidance
Quanta now expects revenues between $16 billion and $16.50 billion versus the consensus mark of $15.58 billion.
It expects adjusted (non-GAAP) earnings between $6.00 and $6.50 and the Zacks Consensus Estimate is currently pegged at $6.16 per share. Adjusted EBITDA is projected within $1.59-$1.70 billion. Net income is expected within $530-$604 million. Meanwhile, Quanta’s full-year non-GAAP free cash flow projection is pegged at $650-$850 million.
Zacks Rank & Peer Release
Quanta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fluor Corporation (FLR - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues lagged the same. Earnings beat the Zacks Consensus Estimate for the fourth straight quarter, whereas revenues missed the same for the sixth consecutive quarter.
Fluor's total new awards for 2021 came in at $8.8 billion compared with $9 billion in 2020. Consolidated backlog for the year came in at $18.9 billion, down from $25.6 billion in 2020.
UFP Industries, Inc. (UFPI - Free Report) reported fourth-quarter 2021 results, wherein earnings and net sales beat the Zacks Consensus Estimate as well as improved impressively on a year-over-year basis.
With this, UFPI’s earnings and sales surpassed the consensus mark in the trailing four quarters. The uptrend was mainly driven by the diversity of markets and an improved pricing model.
Louisiana-Pacific Corporation (LPX - Free Report) — commonly known as LP — reported impressive results for fourth-quarter 2021. Both the top and the bottom line surpassed the Zacks Consensus Estimate and grew on a year-over-year basis.
For first-quarter 2022, LP expects Siding Solutions revenue growth of 10% from the year-ago period. OSB revenues are expected to sequentially rise 40%. It anticipates consolidated adjusted EBITDA of more than $500 million, suggesting a rise from $461 million reported a year ago.