Published on 2 May 2024 on Zacks via Yahoo Finance
Quanta (PWR) Stock Rises on Q1 Earnings and Revenue Beat
Quanta Services Inc. PWR reported better-than-expected results for first-quarter 2024, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.Shares of this leading national provider of specialty contracting services gained more than 2.5% following the release on May 2.Quanta's performance in the first quarter marks a strong beginning to the year, characterized by impressive growth across key metrics. Double-digit increases in revenue, adjusted EBITDA, and adjusted earnings per share (EPS), alongside record cash flow, underscore the company's robust performance. Notably, the Electric Power Infrastructure Solutions segment exceeded expectations, delivering superior profitability attributed to consistent operational excellence and safe execution.
Detailed Discussion
Quanta’s adjusted EPS of $1.41 beat the consensus estimate of $1.26 by 11.9% and increased 13.7% from the year-ago quarter’s $1.24. The growth was supported by robust demand for its services, propelled by customers' multi-year initiatives aimed at modernizing and fortifying utility infrastructure, expanding renewable energy generation and transmission infrastructure, and transitioning toward a low-carbon economy. Total revenues of $5.03 billion surpassed the consensus mark of $4.96 billion by 1.5% and increased 13.6% year over year.The operating margin for the quarter expanded 30 basis points (bps) to 3.1% from a year ago. Adjusted EBITDA of $387.3 million improved 16.5% from the year-ago quarter. We expected operating margin to be 3.7% and adjusted EBITDA to be up 13.6%.The company reported a 12-month backlog of $16.64 billion and a total backlog of $29.9 billion at March 2024-end. This compares slightly unfavorably with the December 2023-end’s 12-month backlog of $17.23 billion and the total backlog of $30.11 billion. Our model suggested a total backlog of $28.45 billion.