Quanta Services Inc.
) reported second-quarter 2012 recurring earnings per share of 31
cents, a penny above the Zacks Consensus Estimate and up a robust
107% from the prior-year quarter.
GAAP earnings were 36 cents a share in the quarter, up 20% from
the Zacks Consensus Estimate and 89.5% year over year.
Total revenue for the second quarter was $1.52 billion, up 51%
year over year from $1.01 billion. The growth in revenue was
primarily driven by increased demand for the company's electric
power and pipeline services. Consolidated backlog at the end of
first six months of 2012 was $4.1 billion, compared with $3.2
billion at the end of the first six months of 2011.
Electric Power revenue in the quarter grew 66.9% to $1.0 billion
from $667.1 million in the prior-year period. Natural Gas and
Pipeline revenue increased 22.4% year over year to $340 million
from $209.7 million, Telecommunications revenue was $133.6 million,
up 8.8% from $106.4 million and Fiber Optic Licensing revenue crept
up 1.9% year over year to $28.7 million from $27.8 million.
Segment wise, total backlog came in at $2.8 billion, $829
million, $341.4 million and $1.104 million in Electric Power,
Natural Gas and Pipeline, Telecommunications and Fiber Optic
Licensing segment, respectively.
Income and Expenses
Operating income in the quarter was $111.1 million versus $57.7
million in the prior-year quarter. SG&A expense was $114.7
million compared with $89.5 million in the comparable quarter last
Segment operating income was $111.2 million, $15.3 million,
$13.8 million and $15.2 million for Electric Power, Natural Gas and
Pipeline, Telecommunications and Fiber Optic Licensing segment,
During the quarter, the company received two projects; one for
Transmission Development in the Hanna Region and the other for CREZ
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the quarter was $172.8
million with shareholders equity of $3.5 billion.
Driven by strong performance in the second quarter, Quanta
raised its guidance for fiscal 2012. For fiscal 2012, Quanta now
expects revenue in the range of 5.9 billion to $6.1 billion, up
from the previous guidance of $5.4 billion to $5.7 billion.
Diluted earnings per share for the full year are expected
between $1.15 and $1.25, up from $1.00 to $1.20 projected
Quanta raised the adjusted diluted earnings per share (non-GAAP)
guidance for the full year 2012 to $1.35 to $1.45 from the earlier
forecast of $1.19 to $1.39.
For the third quarter of 2012, revenue is expected to be in the
range of $1.6 billion to $1.7 billion while diluted earnings per
share are projected in the range of 34 cents to 37 cents. Quanta
expects adjusted diluted earnings per share (non-GAAP) in the range
of 39 cents to 42 cents for third quarter 2012.
The overall outlook for Quanta's business is positive and has
led to improved expectations for the full year 2012. However,
the company's customers continue to experience regulatory and
permitting challenges on projects and economic conditions continue
to be a headwind.
Quanta Services Inc. 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.
We continue to maintain our long-term Neutral recommendation on
Quanta Services, with a Zacks #2 Rank (Buy rating) over the short
term (1-3 months).
QUANTA SERVICES (PWR): Free Stock Analysis
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