Quanta Services Inc. (NYSE:PWR) is a leading national provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. The company has grown organically and made strategic acquisitions to expand its geographic presence and scope of services, along with developing new capabilities to meet its customers evolving needs.
Of late, an overall increase in spending for upgrade and expansion of transmission & distribution infrastructure, improving system reliability and delivering renewable electricity from new-generation sources to demand centers, have proved to be beneficial for PWR. Also, the company’s proven track record of on-time project completion and bolt-on acquisitions have added to its strength.
However, PWR has been facing major headwinds in recent times, like harsh weather events, project delays and abrupt shifts in small transmission market dynamics. In addition, the collapses in oil prices, especially its effect on the Canadian economy, are adding to the company’s woes. At present, one of the biggest challenges for the company is obtaining the sighting and permission for energy infrastructure projects, including major electric transmission programs, and this continues to weigh on its profitability.
Currently, PWR has a Zacks Rank #3 (Hold) but that could definitely change following its first-quarter 2016 earnings report, which has just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PWR’s first-quarter 2016 adjusted earnings per share came in at 19 cents per share, which missed the Zacks Consensus Estimate of 22 cents.
Revenue: Revenues of the company came in at $1,713.7 million, missing the Zacks Consensus Estimate of $1,735 million.
Key Stats: PWR ended the quarter with backlog level exceeding $10 billion for the first time in the company's history. Also, during the first-quarter of 2016, the company booked large pipeline projects worth $800 million.
Stock Price: PWR shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this PWR earnings report later!
QUANTA SERVICES (PWR): Free Stock Analysis Report
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