Quanta Services Inc. (PWR) reported 2010 first-quarter earnings from continuing operations of 11 cents per share, exceeding the Zacks Consensus Estimate of 8 cents.
Revenues in the quarter were $748.3 million compared to revenues of $738.5 million in the first quarter of 2009.
Quanta and its customers continue to operate in a challenging business environment in light of the economic downturn and tentative capital markets. Therefore, management is unable to predict the timing or extent of the impact that these conditions may have on demand for Quanta’s services, particularly in the near term.
Quanta expects revenues for the second quarter of 2010 to range between $900 million and $950 million. Diluted earnings per share for the second quarter of 2010 is expected between 15 cents and 17 cents, which includes a loss on extinguishment of debt of approximately one cent per share in connection with the redemption or conversion of all outstanding 3.75% convertible subordinated notes due 2026.
Quanta continues to expect revenues for the full year 2010 to range between $3.9 billion and $4.2 billion, with diluted earnings per share for the full year 2010 expected between 90 cents and $1.00.
As a result of its nationwide operations and significant scale, Quanta Services is able to deploy services to customers across the United States. This capability is particularly important to customers who operate networks that span multiple states or regions. The scale of its operations also allows it to mobilize significant numbers of employees on short notice for emergency restoration services.
Its customer relationships extend over multiple end markets and include electric power, gas, telecommunications and cable television companies, as well as commercial, industrial and governmental entities. It has established a solid base of long-standing customer relationships by providing high quality services in a cost-efficient and timely manner. Many of its customer relationships are multi-year and, in some cases, decades old.
The company is one of the few network service providers capable of regularly delivering complete solutions on a nationwide basis. As companies in the electric power, gas, telecommunications and cable television industries continue to search for service providers who can effectively design, install and maintain their networks, Quanta Services believes that its service, industry and geographical breadth places it in a strong position to meet these needs.
Quanta Services is a leading national provider of specialty contracting services, and is one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. Effective during the quarter ended Sep 30, 2009, Quanta began reporting its results under four reportable segments: Electric Power Infrastructure Services, Natural Gas and Pipeline Infrastructure Services, Telecommunications Infrastructure Services and Fiber Optic Licensing.
We currently have a Neutral recommendation on Quanta.
Read the full analyst report on “PWR”
Zacks Investment Research
