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In the last-reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 2% and grew 45.2% year over year. Total revenues surpassed the consensus mark by 5.3% and increased 41.1% year over year.
Encouragingly, earnings topped analysts’ expectations in 13 of the trailing 14 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings remained unchanged at $1.77 per share over the past 60 days. The estimated figure indicates a 19.6% increase from the year-ago earnings of $1.48 per share. The consensus mark for revenues is $4.38 billion, suggesting a 30.6% year-over-year rise.
Development and deployment of technology solutions across the full spectrum of decarbonization efforts, including carbon management mitigation and compliance consulting, as well as all facets of infrastructure for providing carbon-free energy solutions, will benefit the company in the to-be-reported quarter.
The company has been capitalizing on the megatrends to lead the energy transition and enable technological development. Initiatives such as electric vehicle charging infrastructure and undergrounding of electrical infrastructure are gaining momentum. These factors should help the company to boost its profit level.
Segment-wise, the Electric Power Infrastructure Services segment (accounting for almost 59% of total revenues) is likely to have benefited from broad-based business strength driven by ongoing grid modernization, system hardening, renewable energy interconnections and solid execution.
Also, contributions from larger transmission projects underway in Canada and revenues from the acquired businesses are likely to have supported bottom-line growth in the to-be-reported quarter. Higher profitability from the LUMA joint venture and other integral unconsolidated affiliates, along with communications and electric operations, might have added to the positives.
The Zacks Consensus Estimate for the Electric Power segment’s revenues is pegged at $2,146 million, implying a decline from $2,328 million a year ago.
The Underground Utility and Infrastructure Solutions segment (accounting for almost 14% of total revenues) has been benefiting from higher demand for gas utility and pipeline integrity services and pent-up demand for the services that were deferred due to the effects of COVID-19 on the downstream market.
Meanwhile, the Renewable Energy Infrastructure Solutions segment — consists of services and solutions for infrastructure supporting the delivery of renewable energy — including renewable generation, electric transmission, substations and battery storage, with Blattner's operations representing the majority of those solutions. This addition is expected to have contributed to the company’s top line in the quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Quanta Services this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -0.97%.
EMCOR Group, Inc. (EME - Free Report) reported third-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Given the solid momentum of the business activity amid a challenging macroeconomic environment, the company has lifted its revenues and earnings per share guidance for 2022.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The company has been gaining from the sustained demand in its end markets and the strength of its core rental business.
URI also lifted its full-year guidance for total revenues and adjusted EBITDA, given broad-based end-market activity, contractor backlogs, customer sentiment and solid visibility.
Otis Worldwide Corporation (OTIS - Free Report) reported mixed results in third-quarter 2022. Its earnings surpassed the Zacks Consensus Estimate and rose on a year-over-year basis. However, sales declined from the year-ago quarter’s figure and lagged the consensus mark.
For 2022, OTIS expects adjusted net sales to be within $13.4-$13.5 billion, lower than the $13.6-$13.8 billion projected earlier. Adjusted earnings per share are anticipated to be $3.11-$3.15, suggesting 5-7% year-over-year growth. This is down from the prior projection of $3.17-$3.21 per share.
Image: Bigstock
Quanta Services (PWR) to Post Q3 Earnings: What to Expect
Quanta Services, Inc. (PWR - Free Report) is scheduled to report third-quarter 2022 results on Nov 3, before the opening bell.
In the last-reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 2% and grew 45.2% year over year. Total revenues surpassed the consensus mark by 5.3% and increased 41.1% year over year.
Encouragingly, earnings topped analysts’ expectations in 13 of the trailing 14 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings remained unchanged at $1.77 per share over the past 60 days. The estimated figure indicates a 19.6% increase from the year-ago earnings of $1.48 per share. The consensus mark for revenues is $4.38 billion, suggesting a 30.6% year-over-year rise.
Quanta Services, Inc. Price and EPS Surprise
Quanta Services, Inc. price-eps-surprise | Quanta Services, Inc. Quote
Factors to Note
Development and deployment of technology solutions across the full spectrum of decarbonization efforts, including carbon management mitigation and compliance consulting, as well as all facets of infrastructure for providing carbon-free energy solutions, will benefit the company in the to-be-reported quarter.
The company has been capitalizing on the megatrends to lead the energy transition and enable technological development. Initiatives such as electric vehicle charging infrastructure and undergrounding of electrical infrastructure are gaining momentum. These factors should help the company to boost its profit level.
Segment-wise, the Electric Power Infrastructure Services segment (accounting for almost 59% of total revenues) is likely to have benefited from broad-based business strength driven by ongoing grid modernization, system hardening, renewable energy interconnections and solid execution.
Also, contributions from larger transmission projects underway in Canada and revenues from the acquired businesses are likely to have supported bottom-line growth in the to-be-reported quarter. Higher profitability from the LUMA joint venture and other integral unconsolidated affiliates, along with communications and electric operations, might have added to the positives.
The Zacks Consensus Estimate for the Electric Power segment’s revenues is pegged at $2,146 million, implying a decline from $2,328 million a year ago.
The Underground Utility and Infrastructure Solutions segment (accounting for almost 14% of total revenues) has been benefiting from higher demand for gas utility and pipeline integrity services and pent-up demand for the services that were deferred due to the effects of COVID-19 on the downstream market.
Meanwhile, the Renewable Energy Infrastructure Solutions segment — consists of services and solutions for infrastructure supporting the delivery of renewable energy — including renewable generation, electric transmission, substations and battery storage, with Blattner's operations representing the majority of those solutions. This addition is expected to have contributed to the company’s top line in the quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Quanta Services this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -0.97%.
Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
A Few Recent Construction Releases
EMCOR Group, Inc. (EME - Free Report) reported third-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Given the solid momentum of the business activity amid a challenging macroeconomic environment, the company has lifted its revenues and earnings per share guidance for 2022.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The company has been gaining from the sustained demand in its end markets and the strength of its core rental business.
URI also lifted its full-year guidance for total revenues and adjusted EBITDA, given broad-based end-market activity, contractor backlogs, customer sentiment and solid visibility.
Otis Worldwide Corporation (OTIS - Free Report) reported mixed results in third-quarter 2022. Its earnings surpassed the Zacks Consensus Estimate and rose on a year-over-year basis. However, sales declined from the year-ago quarter’s figure and lagged the consensus mark.
For 2022, OTIS expects adjusted net sales to be within $13.4-$13.5 billion, lower than the $13.6-$13.8 billion projected earlier. Adjusted earnings per share are anticipated to be $3.11-$3.15, suggesting 5-7% year-over-year growth. This is down from the prior projection of $3.17-$3.21 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.