Quanta Earnings Beat in 1Q - Analyst Blog
Quanta Services Inc. ( PWR ) released first-quarter 2013 results with GAAP earnings per share of 34 cents beating the Zacks Consensus Estimate of 29 cents by 17.2% as well as the prior-year earnings of 22 cents by 54.5%.
Non-GAAP earnings in the reported quarter were 38 cents a share, up 31.0% from the Zacks Consensus Estimate of 29 cents a share. The reported figure was also 46.2% 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 19.3% from $1.33 billion in the prior-year quarter, aided by increased revenues from the company's Electric Power Infrastructure Services segment. Quanta reported revenue growth across all of its operating segments.
Electric Power revenues in the quarter were $1.2 billion, up 26.7% from $932 million in the prior-year period. Revenues during the quarter were positively impacted by higher revenues from electric power transmission projects and solar power generation projects as a result of increased capital spending by customers. The segment had a backlog of $132.5 million compared to $114.2 million in the prior-year quarter.
Natural Gas and Pipeline revenues came in at $358.9 million, flat year over year as the increased project costs as a result of performance issues caused by adverse weather conditions on certain projects. The segment had a backlog of $10.4 million compared to negative $10.5 million in the prior-year quarter
Fiber Optic Licensing revenues were up 15.7% to $45.8 million from $39.5 million in the comparable quarter last year. The segment had a backlog of $16.9 million compared to $14.5 million in the prior-year quarter
Income and Expenses
Operating income in the quarter was $119.2 million compared to $78.8 million in the prior-year quarter, reflecting an increase of 51.4%. SG&A expense was $113.7 million compared to $98.1 million in the comparable quarter last year.
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the quarter were $366.6 million and shareholders' equity was $3.83 billion.
Capital expenditures were approximately $56 million, which resulted in $12 million in negative free cash flow for the first quarter of 2013 compared with $104 million in negative free cash flow for the first quarter of 2012.
Quanta is positive about its performance going forward. Quanta expects revenues for the second quarter of 2013 to be in the range of $1.45 billion to $1.55 billion. GAAP earnings are expected to be in the range of 30 cents to 32 cents while non-GAAP earnings for the quarter are projected in the range of 35 cents to 37 cents.
Quanta expects revenues for the full year 2013 to range between $5.9 billion and $6.3 billion. GAAP earnings for the year are expected to be in the range of $1.20 and $1.40 per share and non-GAAP earnings are expected to range from $1.37 to $1.57 per share.
Quanta currently has a Zacks Rank #3 (Hold). However, some other players operating in the same industry and worth considering are Chicago Bridge & Iron ( CBI ), Orion Marine Group Inc . ( ORN ) and Fluor Corporation ( FLR ), all having Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
ORION MARINE GP (ORN): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis Report
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