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S&P 500 (NYSE:SPY) component Quanta Services Inc. (NYSE:PWR) reported net income above Wall Street’s expectations for the second quarter. Quanta Services provides infrastructure and contracting solutions to the electric power, natural gas, oil, and telecommunications industries.
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Quanta Services Inc. Earnings Cheat Sheet
Results: Net income for Quanta Services Inc. rose to $65.5 million (31 cents per share) vs. $31.8 million (15 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.
Revenue: Rose 50% to $1.52 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Quanta Services Inc. reported adjusted net income of 36 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. It beat the average revenue estimate of $1.26 billion.
Quoting Management: “Fifty-eight percent revenue growth in the first six months of this year reflects our ability to provide skilled resources to our customers in a tight labor market with increasing demand for our electric power and pipeline services. As a result of this demand, we are raising our guidance for the year,” said Jim O’Neil, president and chief executive officer of Quanta Services. “Our pipeline segment showed meaningful improvement in the quarter despite no revenues from large diameter pipeline projects. We expect significant contributions from this segment as several large diameter pipeline projects are awarded and move to construction in 2013.”
Revenue has risen the past four quarters. Revenue increased 67.9% to $1.43 billion in the first quarter. The figure rose 36.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 3.7% in the third quarter of the last fiscal year from the year-ago quarter.
The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 25 cents versus a mean estimate of net income of 16 cents per share.
Looking Forward: The average estimate for the third quarter remains unchanged at 34 cents a share. For the fiscal year, the average estimate has moved up from $1.08 a share to $1.15 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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