Quanta Services Earnings: Here’s Why the Stock is Rising Now

Quanta Services, Inc. (NYSE:PWR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.33%.

Quanta Services, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.58% to $0.38 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Decreased 2.82% to $1.47 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quanta Services, Inc. reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.33. It missed the average revenue estimate of $1.51 billion.

Quoting Management: “Quanta continues to capitalize on positive industry trends with solid execution by our electric power and natural gas and pipeline operations. This led to 22 percent growth in diluted earnings per share in the quarter and record total backlog at June 30, 2013,” said Jim O’Neil, president and chief executive officer of Quanta Services. “Our business remains very active and as a result we are raising our 2013 annual guidance. Additionally, during the second quarter we were awarded $550 million of mainline pipeline projects and believe the markets we serve will continue to yield significant opportunities in the foreseeable future.”

Key Stats (on next page)…

Revenue decreased 7.04% from $1.59 billion in the previous quarter. EPS increased 11.76% from $0.34 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.39 to a profit $0.38. For the current year, the average estimate is a profit of $1.42, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)