Quanta Services Inc (PWR) reported fourth quarter 2009 earnings from continuing operations of 21 cents per share, exceeding the Zacks Consensus Estimate of 18 cents. Revenues in fourth quarter 2009 were $985.4 million compared to revenues of $921.5 million in fourth quarter 2008.
Electric Power accounted for 52.3% of revenues in the quarter, followed by Natural Gas & Pipeline with 35.6%, Telecommunications with 9.5% while Fiber Optic Licensing accounted for remainder of the revenues in the quarter.
Customers and demand for its services continue to be negatively impacted by slow economic conditions. During these difficult times, however, it has continued its strategy of not pursuing low-margin business. The result of this strategy is reflected in the improvement of gross margins for the full year 2009 over 2008 even on reduced revenues for the full year 2009 compared to 2008.
Cash and cash equivalents were $699 million with long-term debt of $127 million and shareowners’ equity of $3.1 billion.
Backlog for Electric Power at the end of the quarter was $1.3 billion followed by Natural Gas & Pipeline with $848 million and Telecommunications with $223 million. Backlog represents revenue that the company expects to realize from work to be performed in the future on uncompleted contracts, including new contractual arrangements on which work has not yet begun.
Quanta expects revenues for first quarter 2010 to range between $700 million and $750 million. Earnings per share for first quarter 2010 are estimated to be 7 cents. Quanta expects revenues for the full year 2010 to range between $3.9 billion and $4.2 billion. Earnings per share for the full year 2010 are estimated between 90 cents and $1.00.
Quanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power, natural gas and pipeline and telecommunication industries. The company’s comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide.
Additionally, Quanta licenses point-to-point fiber optic telecommunications infrastructure in select markets and offers related design, procurement, construction and maintenance services. Major competitors include EMCOR Group Inc. (EME) and Integrated Electrical Services Inc (IESC).
We currently have a Neutral recommendation on Quanta.
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