Quanta Services (PWR) Q1 Earnings: What's In The Cards?
Zacks Investment Research | May 01, 2017 10:42PM ET
Quanta Services, Inc. (NYSE:PWR) is slated to report first-quarter 2017 results before the opening bell on May 4.
Quanta Services has had a dismal earnings surprise history, with three misses and one in-line earnings over the trailing four quarters, for an average negative surprise of 17.3%. Last quarter, the company’s earnings missed the Zacks Consensus Estimate by 3.7%.
Let's see how things are shaping up for this announcement.
Factors to Consider
Quanta Services has been deriving strong benefits from its diligent three-pronged growth strategy. The strategy focuses on the timely delivery of projects, leveraging on its core business areas to expand in complementary service lines and venturing into new service lines as well. The company’s decentralized and entrepreneurial business model has aided in combating some of the most pressing macroeconomic challenges.
Quanta Services’ thriving engineering and project management services are expected to boost its revenues for the soon-to-be-reported quarter. Of late, the company has been witnessing a solid rebound in its end markets, on the back of key growth drivers, like an aging grid, shifting generation mix and implementation of clean energy initiatives. Especially, the North American electric transmission and distribution markets have been investing huge amounts in transmission, and distribution upgrades, in a bid to improve system reliability and deliver renewable electricity.
Moreover, the company is currently pursuing several high-voltage electric transmission award opportunities, amid substantial bidding activity, in Australia, Canada and the U.S. We believe that these positive industry trends will act as major growth catalysts for the quarter to be reported.
This apart, robust pipeline projects in the oil and gas sector, supported by active bidding and negotiating environment, can also act as huge profit churners for the top line in the first quarter. In addition, Quanta Services’ previously completed acquisitions are likely to contribute significantly to the Electric Power Infrastructure Services segment’s top line.
Over the past one year, Quanta Services recorded an average return of 48.9%, more than double of the Zacks categorized Zacks Investment Research
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