- Quanta Services reported an adjusted EPS of $2.94 for Q4, exceeding both the previous year’s $2.04 and estimates of $2.63.
- The reported EPS for Q4 was $2.03 compared to $1.42 in the prior year.
- Quarterly revenue reached $6.55 billion, marking a 13% increase year-over-year, but slightly below the $6.61 billion estimate.
- Electric Power Infrastructure Solutions revenue soared to $3.41 billion, a 39% increase from the previous year, surpassing the $3.29 billion estimate.
- Revenue for Underground Utility and Infrastructure Solutions was $1.17 billion, reflecting a 9.9% decrease from the prior year, yet above the $1.11 billion estimate.
- Total backlog increased by 15% year-over-year to $34.54 billion, exceeding the estimated $33.81 billion.
- The Electric Power Infrastructure Solutions backlog grew by 28% to $19.90 billion, surpassing the $19.72 billion estimate.
- The Underground Utility and Infrastructure Solutions backlog decreased by 8.8% to $5.91 billion, below the $6.56 billion estimate.
- Adjusted Ebitda reached $737.8 million, a 34% increase year-over-year, outperforming the $687.2 million estimate.
- The company forecasts yearly revenue between $26.60 billion and $27.10 billion, aligning closely with the $26.81 billion estimate.
- Analysts’ ratings include 20 buys, 7 holds, and 1 sell for Quanta Services.
Quanta Services on Smartkarma
Analyst coverage on Quanta Services on Smartkarma reveals contrasting views from top independent analysts. Value Investors Club published a research report on October 22, 2024, suggesting a bearish stance on Quanta Services due to an expected decrease in demand in 2024. The report highlights concerns about the company’s total addressable market and unsustainable peak expectations, presenting Quanta Services as a compelling short opportunity. This analysis cautions investors about potential risks amidst a surge in demand driven by regulatory shifts and one-off projects.
In contrast, Baptista Research offers a more optimistic outlook in their analysis of Quanta Services, identifying the company as a major provider of infrastructure solutions for various sectors. Despite operational challenges like storms requiring significant resource deployment, Quanta Services demonstrated robust performance in the third quarter of 2024 with notable growth in key financial metrics. Baptista Research emphasizes the company’s strong backlog and growth in revenues and earnings, conducting an independent valuation using a Discounted Cash Flow methodology to evaluate future price influences. These divergent perspectives showcase the complexity of assessing Quanta Services‘ investment potential.
A look at Quanta Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Quanta Services, Inc. provides specialized contracting services across various sectors, including electric utilities, telecommunications, and government entities. They also offer services like transportation control, lighting systems installation, and specialty electric power services for industrial and commercial clients. Operating extensively across North America, Quanta Services has garnered mixed scores in different aspects according to Smartkarma Smart Scores. While the company scores moderately on value and dividend factors, it stands out with higher scores in growth, resilience, and momentum.
The overall outlook for Quanta Services appears positive in the long term, supported by strong scores in growth, resilience, and momentum. This indicates the company’s potential for upward trajectory and ability to navigate challenges. However, with moderate scores on value and dividend factors, investors may need to consider other aspects beyond just the financials when evaluating Quanta Services for their investment portfolio.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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