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Free Post Earnings Research Report: Quanta Services Diluted Jumped 21.28%; Beats Expectations

LONDON, UK / ACCESSWIRE / December 14, 2017 / Active-Investors free earnings report on Quanta Services, Inc. (NYSE: PWR) ("Quanta") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=PWR. Quanta posted third quarter fiscal 2017 results (Q3 FY17) as on November 01, 2017. The leading full-service engineering services provider's revenue increased by 27.77%. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Quanta Services most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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Earnings Highlights and Summary

During Q3 FY17, Quanta posted revenues of $2.61 billion compared to $2.04 billion, reflecting growth of 27.77% due to an increase in US production of liquid fuels and revenues generated from penetration in downstream and midstream petrochemical markets. Revenue numbers exceeded analysts' estimates of $2.30 billion.

Quanta's gross profit increased 15.88% to $350.63 million on a y-o-y basis in the reported quarter compared to $302.58 million in Q3 FY16. The Company's operating income was $140.43 million for Q3 FY17 compared to $130.16 million in Q3 FY16.

Quanta's net income reflected growth of 21.12% to $89.31 million in Q3 FY17 compared to $73.74 million in Q3 FY16. The Company's diluted EPS was $0.57 in Q3 FY17 compared to $0.47, advancing 21.28% on a y-o-y basis. Quanta's adjusted earnings, adjusted for one-time gains and costs for Q3 FY17, was $0.63, which exceeded Wall Street's expectations of $0.59. Quanta completed three acquisitions during the first nine months of 2017.

Quanta's Segment Details

Quanta has two business segments, namely: (i) Electric Power Structure Services (ii) Oil and Gas Infrastructure Services.

During Q3 FY17, the Electric Power Structure Services segment's revenue of $1.50 billion in Q3 FY17, compared to $1.22 billion in Q3 FY16, reflecting growth of 23.09% on y-o-y basis. The segment's operating income increased 26.10% to $150.05 million in the reported quarter, compared to $119.00 in the prior-year quarter.

The Oil and Gas Infrastructure Services segment's revenue totaled $1.10 billion in Q3 FY17 compared to $819.75 million in Q3 FY16, surging 34.74 % on a y-o-y basis. The segment's operating income was $58.51 million in Q3 FY17 compared to $65.66 million, slightly declining by 10.89%.

Quanta's revenue in the reported quarter on a geographical basis was 79.00% in the US, 16.00% for Canada, 2.00% for Australia, 3.00% for the Latin American region (LATAM) and other.

The Company's estimated revenue in the reported quarter, on the basis of contract type, was 32.00% from fixed price, 23.00% from cost-plus contract type, and 45.00% from unit price contract type.

Quanta's estimated revenue in the reported quarter, on the basis of project type, was 49.00% from New Construction project type, 41.00% from Master Service Agreement project type, 8.00% from maintenance and repair project type, 2.00% from Engineering project type.

Balance Sheet

Quanta held cash and cash equivalents of $91.53 million on September 30, 2017, compared to $112.18 million on December 30, 2016. The Company's long-term debt was $760.21 million on September 30, 2017, and $353.56 million in Q4 FY16.

Outlook

For full fiscal 2017, Quanta expects revenues in the range of $9.25 billion to $9.35 billion, with diluted earnings per share (EPS) to be in the band of $1.58 to $1.68, and adjusted earnings per share (EPS) in the range of $1.90 to $2.00, due to upbeat industry trends. The Company expects its Electric Power segment's revenues to increase slightly between 5.00% to 10.00% and Oil and Gas Infrastructure segments to increase more than 10.00% and operating income margins in the range of 5.00% to 6.00%. Quanta also booked more than $200.00 million of new communications work during the quarter.

Stock Performance Snapshot

December 13, 2017 - At Wednesday's closing bell, Quanta Services' stock dropped 2.12%, ending the trading session at $38.29.

Volume traded for the day: 1.58 million shares, which was above the 3-month average volume of 1.25 million shares.

Stock performance in the last month – up 4.28%; previous three-month period – up 5.02%; past twelve-month period – up 9.18%; and year-to-date – up 9.87%

After yesterday's close, Quanta Services' market cap was at $5.90 billion.

Price to Earnings (P/E) ratio was at 20.64.

The stock is part of the Industrial Goods sector, categorized under the General Contractors industry. This sector was up 0.5% at the end of the session.

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