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Headquartered in Houston, Texas, Quanta Services, Inc. (PWR) is a premier provider of infrastructure solutions across a range of sectors, including electric and gas utilities, renewable energy, communications, and pipelines. Valued at a market capitalization of $52.8 billion, Quanta excels in the installation of transportation control and lighting systems, in addition to offering tailored electric power and communication services for industrial and commercial clients. It is poised to release its fiscal fourth-quarter and FY2024 results before the market opens on Thursday, Feb. 20.
Ahead of the event, analysts expect PWR to report a profit of $2.44 per share on a diluted basis, up 29.8% from $1.88 per share in the year-ago quarter. The company exceeded the consensus estimates in three of the last four quarters while missing on another occasion.
For the fiscal year 2024, analysts expect PWR to report EPS of $7.90, up 21% from $6.53 in fiscal 2023.
Over the past 52 weeks, PWR stock has surged by an impressive 85.2%, far outpacing the S&P 500’s ($SPX) 25.3% gains and the Industrial Select Sector SPDR Fund’s (XLI) 25.4% rally over the same time frame.
Quanta Services has notably outperformed the broader market over the past year, driven by the surging demand for energy infrastructure and grid modernization supported by federal policies and renewable energy mandates. The company's strategic acquisition of Cupertino Electric has further bolstered its presence in the data center and renewable energy sectors.
However, on Oct. 31, shares of PWR plunged 3.2% following the release of its Q3 earnings. The company reported an adjusted EPS of $2.72 per share, surpassing the $2.66 estimate from analysts. But, revenue of $6.49 billion missed the $6.55 billion forecast, primarily driven by a decline in demand within the Underground Utility and Infrastructure Solutions segment, which experienced a 9.1% revenue decrease compared to the prior-year quarter. This downturn is linked to builders' hesitance to initiate new housing projects amid a growing supply of new homes in the market.
Nevertheless, analysts’ consensus opinion on PWR stock is extremely bullish, with a “Strong Buy” rating overall. Out of 21 analysts covering the stock, 16 advise a “Strong Buy” rating, and five give a “Hold.” PWR currently trades above its average price target of $352.26.
