Quanta Services Inc.
) reported second-quarter 2013 GAAP earnings per share of 33
cents, a penny below the Zacks Consensus Estimate of 34 cents.
However, quarterly earnings surpassed the prior-year earnings of
27 cents by 22.2%.
Non-GAAP earnings (excluding the one-time items) for the
reported quarter were 38 cents a share, 11.8% above the Zacks
Consensus Estimate. The reported figure was also 18.6% higher
than the prior-year quarter. Profits were primarily driven by
increasing demand for the company's services.
Total revenue for the quarter was $1.59 billion, up 6.4% to
$1.47 billion from $1.38 billion in the prior-year quarter, aided
by increased revenues from the company's Electric Power
Infrastructure Services segment. Quanta reported revenue growth
in all three of its operating segments.
revenues in the quarter were $1.04 billion, up 4.0% from $1.00
billion in the prior-year period. The Electric Power segment
continued to experience increased demand for electric
transmission and distribution services, as the electric power
industry is investing at record levels to upgrade and modernize
North America's power grid. In addition, regulations to improve
Red reliability, renewable interconnections, and the impact of
switching to gas generation are expected to continue to drive the
power industry's investments and electric infrastructure over the
long term. The segment had a backlog of $2.7 billion compared
with $2.8 billion in the prior-year period.
Natural Gas and Pipeline
revenues came in at $385.9 million, reflecting a 14.3% increase
year over year. This growth was driven by demand for pipeline
services to support shale gathering infrastructure that was
strong during the second quarter. The segment received close to
about $550 million from mainline pipe projects from four
customers. The segment had a backlog of $968.9 million compared
with $828.6 million in the prior-year period.
Fiber Optic Licensing
revenues declined 1.0% to $42.1 million from $42.5 million in the
comparable quarter last year. The segment had a backlog of $127.9
million compared with $130.4 million in the prior-year
Income and Expenses
Operating income in the quarter was $117.2 million compared
with $98.3 million in the prior-year quarter, reflecting an
increase of 19.1%. SG&A expense was $119.0 million compared
with $105.2 million in the comparable quarter last year.
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the quarter were
$363.1 million and shareholders' equity was $3.88 billion.
Quanta is positive about its performance going forward. Quanta
expect revenues for the third quarter of 2013 to be in the range
of $1.65 billion to $1.75 billion. Non-GAAP earnings for the
quarter are projected in the range of 43 cents to 45 cents.
Quanta expects revenues for full year 2013 to range between
$6.2 billion and $6.5 billion compared with $5.9 billion and $6.3
billion. Non-GAAP earnings are expected to range from $1.35 to $
1.45 compared with $1.37 to $1.57 mentioned earlier.
Quanta currently has a Zacks Rank #3 (Hold). However, some
other players operating in the same industry and worth
Lennox International, Inc. (
) and Mertiage Homes Corporation (
carrying a Zacks Rank #1 (Strong Buy
). Ryland Group Inc. (
is also worth a look with a Zacks Rank #2 (Buy).
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