Quanta Services beats Q4 profit view on sustained renewable energy demand
Feb 22 (Reuters) - Energy contractor Quanta Services reported higher-than-expected fourth quarter profits on Thursday, led by sustained demand from the renewable energy sector for its engineering and construction services.
Shares of Quanta were up 3.1% during premarket trading.
"Demand is strong for our solutions that support our customers' energy-transition initiatives," CEO Duke Austin said.
The rise in demand comes as a result of Biden's 2022 Inflation Reduction Act (IRA), which provides tax credits to wind, solar and renewable energy companies, as well we electric vehicle makers, to promote clean energy generation and transition, electrification and decarbonisation.
The Houston Texas-based company operates in the U.S., Canada and Australia through its electric power, renewable energy and underground utility segments.
On an adjusted basis, Quanta reported a profit of $2.04 per share, beating analysts' average estimate of $1.98 per share, according to LSEG data.
Quanta's renewable energy segment reported a two-fold jump in quarterly revenue to $2.03 billion.
Total revenue surged nearly 31% to $5.78 billion, beating estimates of $5.18 billion.
The company expects adjusted earnings for full year 2024 to be in the range of $8.00-$8.50 per share, compared with analysts' estimates of $8.36 per share, as per LSEG data. (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Dhanya Ann Thoppil)
