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Dec 31, 2019
Quanta Services Q4 2019 Earnings Report
Quanta Services' Q4 2019 performance showed revenue matching the previous year, but net income and EPS increased, while adjusted EPS slightly decreased.
Key Takeaways
Quanta Services reported revenues of $3.11 billion for Q4 2019, the same as Q4 2018. Net income attributable to common stock was $118.1 million, or $0.80 per diluted share, compared to $56.8 million, or $0.38 per diluted share, in Q4 2018. Adjusted diluted EPS was $0.93, compared to $0.96 in Q4 2018. The company's full-year 2020 guidance reflects growth in revenues, net income, adjusted EBITDA, EPS, and operating cash flow.
Quanta's Q4 revenues remained flat year-over-year at $3.11 billion.
Net income attributable to common stock increased to $118.1 million, or $0.80 per diluted share, up from $56.8 million, or $0.38 per diluted share, in the prior year.
Adjusted diluted EPS decreased slightly to $0.93 compared to $0.96 in the same quarter last year.
The company completed the sale of APL and added the Wataynikaneyap Transmission Project to backlog.
Quanta Services
Quanta Services
Forward Guidance
Quanta expects 2020 revenues to range between $12.2 billion and $12.6 billion, net income attributable to common stock to range between $439 million and $499 million and diluted earnings per share attributable to common stock to range between $2.93 and $3.33. Quanta expects adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.62 and $4.02.
Positive Outlook
- 2020 revenues are expected to range between $12.2 billion and $12.6 billion.
- Net income attributable to common stock is projected to be between $439 million and $499 million.
- Diluted earnings per share attributable to common stock are expected to range between $2.93 and $3.33.
- Adjusted diluted earnings per share attributable to common stock is projected to range between $3.62 and $4.02.
- EBITDA is expected to range between $961 million and $1.05 billion.
Challenges Ahead
- LATAM operations are expected to generate revenues of $20 million to $40 million.
- LATAM operations are expected to generate an operating loss of $15 million to $20 million.
- LATAM operations are expected to generate diluted loss per share of $0.10 to $0.13.
- Weather, regulatory, permitting, project timing, execution challenges and other factors have impacted the company’s historical results, and may impact Quanta’s future financial results.
- Quanta will pursue the orderly exit of LATAM operations.