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Sep 30, 2020

Quanta Services Q3 2020 Earnings Report

Quanta Services' third quarter results exceeded expectations, driven by strong margins and record revenue in the Electric Power Infrastructure Services segment, leading to increased full-year 2020 expectations.

Key Takeaways

Quanta Services reported strong third quarter results, with revenues of $3.02 billion and a record GAAP diluted EPS of $1.13. The company is raising its full-year 2020 net income, EBITDA, and earnings per share expectations due to the strong performance.

Third quarter consolidated revenues reached $3.0 billion.

Record quarterly GAAP diluted EPS from continuing operations was $1.13, and adjusted diluted EPS was $1.40.

Cash flow from operating activities in the third quarter was $114.9 million.

Total backlog reached a record $15.1 billion.

Total Revenue
$3.02B
Previous year: $3.35B
-9.9%
EPS
$1.4
Previous year: $1.14
+22.8%
Gross Profit
$508M
Previous year: $473M
+7.2%
Cash and Equivalents
$217M

Quanta Services

Quanta Services

Forward Guidance

Quanta Services expects revenues to range between $11.1 billion and $11.3 billion, net income attributable to common stock to range between $378 million and $395 million, diluted earnings per share attributable to common stock to range between $2.61 and $2.72 and adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.52 and $3.64.

Positive Outlook

  • Quanta expects revenues to range between $11.1 billion and $11.3 billion.
  • Net income attributable to common stock to range between $378 million and $395 million.
  • Diluted earnings per share attributable to common stock to range between $2.61 and $2.72.
  • Adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.52 and $3.64.
  • EBITDA (a non-GAAP measure) is expected to range between $894 million and $918 million

Challenges Ahead

  • Weather can impact the company’s future financial results.
  • Regulatory factors can impact the company’s future financial results.
  • Permitting factors can impact the company’s future financial results.
  • Project timing can impact the company’s future financial results.
  • Execution challenges can impact the company’s future financial results.