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Quanta Services (PWR) to Post Q1 Earnings: What Awaits?
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Quanta Services, Inc. (PWR - Free Report) is scheduled to report first-quarter 2020 results on May 7, before the opening bell.
In the last reported quarter, the company’s top and bottom lines surpassed the Zacks Consensus Estimate by 2.6% and 10.7%, respectively. However, its earnings fell 3.1% from prior year owing to lower Electric segment margins.
Trend in Estimate Revision
The Zacks Consensus Estimate for earnings for the quarter to be reported has declined 7.8% over the past 30 days to 47 cents per share. The said figure indicates a 51% decrease from the year-ago earnings of 96 cents per share. The consensus mark for revenues is $2.77 billion, suggesting 1.5% year-over-year fall.
Volatility in Pipeline and Industrial operations, along with the absence of large projects in Electric Power Infrastructure Services are likely to reflect on Quanta Services’ first-quarter results.
Stringent regulatory and permit hurdles for projects — especially regarding product quality, safety measures and environmental protection — are likely to have weighed on first-quarter revenue performance.
A large chunk of Quanta Services’ business involves outdoor activities, which are vulnerable to unfavorable weather conditions. Traditionally, it experiences lower gas distribution business activity in the first quarter due to seasonality.
Segment-wise, the Electric Power segment might have witnessed several unique challenges like absence of large projects, production and labor headwinds, as well as short-term mobilization delays in the quarter to be reported. Yet, robust spending by electric utilities on grid modernization and infrastructure hardening, as well as by gas utilities on distribution system modernization and safety programs is encouraging.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $1,707 million, implying 2.6% growth from a year ago. The same for backlog is $9,723 million, suggesting 16.3% year-over-year growth.
Its Pipeline and Industrial Infrastructure Services segment’s results are likely to reflect base business activity in natural gas distribution, pipeline integrity and industrial services operations, as well as significantly higher pipeline project activities. Moreover, robust demand from the communications industry is likely to have supported growth.
The consensus estimate for the segment’s revenues is pegged at $1,016 million, implying fall of 11.1% from $1,143 million reported in the year-ago period. However, the consensus estimate for the segment’s backlog is $5,824 million, which implies year-over-year growth of 37.1%.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Quanta Services — which shares space with KBR, Inc. (KBR - Free Report) in the same industry — this time around. The 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. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of -7.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +0.49% and carries a Zacks Rank #3.
Trex Company, Inc. (TREX - Free Report) has an Earnings ESP of +4.78% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Quanta Services (PWR) to Post Q1 Earnings: What Awaits?
Quanta Services, Inc. (PWR - Free Report) is scheduled to report first-quarter 2020 results on May 7, before the opening bell.
In the last reported quarter, the company’s top and bottom lines surpassed the Zacks Consensus Estimate by 2.6% and 10.7%, respectively. However, its earnings fell 3.1% from prior year owing to lower Electric segment margins.
Trend in Estimate Revision
The Zacks Consensus Estimate for earnings for the quarter to be reported has declined 7.8% over the past 30 days to 47 cents per share. The said figure indicates a 51% decrease from the year-ago earnings of 96 cents per share. The consensus mark for revenues is $2.77 billion, suggesting 1.5% year-over-year fall.
Quanta Services, Inc. Price and EPS Surprise
Quanta Services, Inc. price-eps-surprise | Quanta Services, Inc. Quote
Factors to Note
Volatility in Pipeline and Industrial operations, along with the absence of large projects in Electric Power Infrastructure Services are likely to reflect on Quanta Services’ first-quarter results.
Stringent regulatory and permit hurdles for projects — especially regarding product quality, safety measures and environmental protection — are likely to have weighed on first-quarter revenue performance.
A large chunk of Quanta Services’ business involves outdoor activities, which are vulnerable to unfavorable weather conditions. Traditionally, it experiences lower gas distribution business activity in the first quarter due to seasonality.
Segment-wise, the Electric Power segment might have witnessed several unique challenges like absence of large projects, production and labor headwinds, as well as short-term mobilization delays in the quarter to be reported. Yet, robust spending by electric utilities on grid modernization and infrastructure hardening, as well as by gas utilities on distribution system modernization and safety programs is encouraging.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $1,707 million, implying 2.6% growth from a year ago. The same for backlog is $9,723 million, suggesting 16.3% year-over-year growth.
Its Pipeline and Industrial Infrastructure Services segment’s results are likely to reflect base business activity in natural gas distribution, pipeline integrity and industrial services operations, as well as significantly higher pipeline project activities. Moreover, robust demand from the communications industry is likely to have supported growth.
The consensus estimate for the segment’s revenues is pegged at $1,016 million, implying fall of 11.1% from $1,143 million reported in the year-ago period. However, the consensus estimate for the segment’s backlog is $5,824 million, which implies year-over-year growth of 37.1%.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Quanta Services — which shares space with KBR, Inc. (KBR - Free Report) in the same industry — this time around. The 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. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of -7.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Quanta Services currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +0.49% and carries a Zacks Rank #3.
Trex Company, Inc. (TREX - Free Report) has an Earnings ESP of +4.78% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
PWR Quick QuotePWR - Free Report) %20is%20scheduled%20to%20report%20first-quarter%202020%20results%20on%20May%207,%20before%20the%20opening%20bell.%20%20In%20the%20last%20reported%20quarter,%20the%20company???s%20top%20and%20bottom%20lines%20surpassed%20the%20Zacks%20Consensus%20Estimate%20by%202.6%%20and%2010.7%,%20respectively.%20However,%20its%20earnings%20fell%203.1%%20from%20prior%20year%20owing%20to%20lower%20Electric%20segment%20margins.%20%20Trend%20in%20Estimate%20Revision%20%20The%20Zacks%20Consensus%20Estimate%20for%20earnings%20for%20the%20quarter%20to%20be%20reported%20has%20declined%207.8%%20over%20the%20past%2030%20days%20to%2047%20cents%20per%20share.%20The%20said%20figure%20indicates%20a%2051%%20decrease%20from%20the%20year-ago%20earnings%20of%2096%20cents%20per%20share.%20The%20consensus%20mark%20for%20revenues%20is%20%242.77%20billion,%20suggesting%201.5%%20year-over-year%20fall.%20%20Factors%20to%20Note%20%20Volatility%20in%20Pipeline%20and%20Industrial%20operations,%20along%20with%20the%20absence%20of%20large%20projects%20in%20Electric%20Power%20Infrastructure%20Services%20are%20likely%20to%20reflect%20on%20Quanta%20Services???%20first-quarter%20results.%20%20Stringent%20regulatory%20and%20permit%20hurdles%20for%20projects%20???%20especially%20regarding%20product%20quality,%20safety%20measures%20and%20environmental%20protection%20???%20are%20likely%20to%20have%20weighed%20on%20first-quarter%20revenue%20performance.%20%20A%20large%20chunk%20of%20Quanta%20Services???%20business%20involves%20outdoor%20activities,%20which%20are%20vulnerable%20to%20unfavorable%20weather%20conditions.%20Traditionally,%20it%20experiences%20lower%20gas%20distribution%20business%20activity%20in%20the%20first%20quarter%20due%20to%20seasonality.%20%20Segment-wise,%20the%20Electric%20Power%20segment%20might%20have%20witnessed%20several%20unique%20challenges%20like%20absence%20of%20large%20projects,%20production%20and%20labor%20headwinds,%20as%20well%20as%20short-term%20mobilization%20delays%20in%20the%20quarter%20to%20be%20reported.%20Yet,%20robust%20spending%20by%20electric%20utilities%20on%20grid%20modernization%20and%20infrastructure%20hardening,%20as%20well%20as%20by%20gas%20utilities%20on%20distribution%20system%20modernization%20and%20safety%20programs%20is%20encouraging.%20%20The%20Zacks%20Consensus%20Estimate%20for%20the%20segment???s%20revenues%20is%20pegged%20at%20%241,707%20million,%20implying%202.6%%20growth%20from%20a%20year%20ago.%20The%20same%20for%20backlog%20is%20%249,723%20million,%20suggesting%2016.3%%20year-over-year%20growth.%20%20Its%20Pipeline%20and%20Industrial%20Infrastructure%20Services%20segment???s%20results%20are%20likely%20to%20reflect%20base%20business%20activity%20in%20natural%20gas%20distribution,%20pipeline%20integrity%20and%20industrial%20services%20operations,%20as%20well%20as%20significantly%20higher%20pipeline%20project%20activities.%20Moreover,%20robust%20demand%20from%20the%20communications%20industry%20is%20likely%20to%20have%20supported%20growth.%20%20The%20consensus%20estimate%20for%20the%20segment???s%20revenues%20is%20pegged%20at%20%241,016%20million,%20implying%20fall%20of%2011.1%%20from%20%241,143%20million%20reported%20in%20the%20year-ago%20period.%20However,%20the%20consensus%20estimate%20for%20the%20segment???s%20backlog%20is%20%245,824%20million,%20which%20implies%20year-over-year%20growth%20of%2037.1%.%20%20What%20Our%20Model%20Indicates%20%20Our%20proven%20model%20does%20not%20conclusively%20predict%20an%20earnings%20beat%20for%20Quanta%20Services%20???%20which%20shares%20space%20with%20KBR,%20Inc.%20(KBR - Free Report) %20in%20the%20same%20industry%20???%20this%20time%20around.%20The%20combination%20of%20a%20positive%20Earnings%20ESP%20and%20a%20Zacks%20Rank%20#1%20(Strong%20Buy),%202%20(Buy)%20or%203%20(Hold)%20increases%20the%20odds%20of%20an%20earnings%20beat.%20This%20is%20not%20the%20case%20here,%20as%20you%20will%20see%20below.%20%20Earnings%20ESP:%20The%20company%20has%20an%20Earnings%20ESP%20of%20-7.45%.%20You%20can%20uncover%20the%20best%20stocks%20to%20buy%20or%20sell%20before%20they???re%20reported%20with%20our%20Earnings%20ESP%20Filter.%20%20Zacks%20Rank:%20Quanta%20Services%20currently%20carries%20a%20Zacks%20Rank%20#3.%20You%20can%20see%20the%20complete%20list%20of%20today???s%20Zacks%20#1%20Rank%20stocks%20here.%20%20Stocks%20Worth%20a%20Look%20%20Here%20are%20some%20companies%20in%20the%20Zacks%20Construction%20sector,%20which%20according%20to%20our%20model%20have%20the%20right%20combination%20of%20elements%20to%20post%20an%20earnings%20beat%20in%20their%20respective%20quarters%20to%20be%20reported.%20%20Vulcan%20Materials%20Company%20(VMC - Free Report) %20has%20an%20Earnings%20ESP%20of%20+0.49%%20and%20carries%20a%20Zacks%20Rank%20#3.%20%20Trex%20Company,%20Inc.%20(TREX - Free Report) %20has%20an%20Earnings%20ESP%20of%20+4.78%%20and%20carries%20a%20Zacks%20Rank%20#3.%20%20Looking%20for%20Stocks%20with%20Skyrocketing%20Upside?%20%20Zacks%20has%20just%20released%20a%20Special%20Report%20on%20the%20booming%20investment%20opportunities%20of%20legal%20marijuana.%20%20%20Ignited%20by%20new%20referendums%20and%20legislation,%20this%20industry%20is%20expected%20to%20blast%20from%20an%20already%20robust%20%246.7%20billion%20to%20%2420.2%20billion%20in%202021.%20Early%20investors%20stand%20to%20make%20a%20killing,%20but%20you%20have%20to%20be%20ready%20to%20act%20and%20know%20just%20where%20to%20look.%20%20%20See%20the%20pot%20trades%20we're%20targeting>>">See the pot trades we're targeting>>