Quanta Services Inc. (NYSE:PWR): Beats Street Estimates With 1Q14 Earnings Release


Dallas, Texas 05/08/2014 (FINANCIALSTRENDS) – Quanta Services Inc. (NYSE:PWR) last week released its better than expected 1Q14 earnings with non-GAAP earnings at $0.44 per share, beating the Zacks consensus estimate of $0.37 per share. The company also reported 15.8% year over year increase in its earnings during 1Q14. However, GAAP earnings plunged 26.4% year over year during 1Q14 and were reported at $0.25 per share. The company reported to be benefited by its leading position in the energy infrastructure market and diligent operational execution countering headwinds from extreme weather conditions.

Financial Highlights: Revenues

Quanta Services Inc. (NYSE:PWR) reported 10.7% year over year growth in 1Q14 total revenue which was reported at $1.76 billionas compared to$1.59 billion reported during 1Q13. The increase was primarily attributed to growth in demand for the company’s safe and reliable services. The 1Q14 revenues also beat Zacks consensus estimate of $1.71 billion.

The company reported 8.5% increase in its Electric Power revenue which was $1.28 billion during 1Q14 as compared to $1.18 billion in 1Q13. Oil and Gas Infrastructure (renamed from Natural Gas and Pipeline Infrastructure Services) revenue reported 24.2% growth during 1Q14 at $445.8 million as compared to 1Q13. Fiber Optic Licensing revenues decreased by 16% year over year to $38.5 million during 1Q14 as compared to $45.8 million during 1Q13. This decline was primarily attributed to decline in telecom service revenues.

Financial Highlights: Other Indicators

Quanta Services Inc. (NYSE:PWR) reported 24.1% decline in operating income at $90.5 million in 1Q14, down from $119.3 million in 1Q13. The company reported cash and cash equivalents at $273.3 million and shareholders’ equity of $4.3 billion at the end of 1Q14. Capital expenditures were reported at $69 million and negative free cash flow of $130 million.

Yesterday, the stock closed at $34.19, gaining 0.44% from its previous close. The stock has gained over 9.5% year to date.