/Quanta%20Services%2C%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Houston, Texas-based Quanta Services, Inc. (PWR) provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries. Valued at $35.86 billion by market cap, the company also installs transportation control and lighting systems and provides specialty electric power and communication services for industrial and commercial customers. The specialty contractor for utility and energy companies is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect PWR to report a profit of $1.76 per share on a diluted basis, up 19.7% from $1.47 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion.
For the full year, analysts expect PWR to report EPS of $7.69, up 17.8% from $6.53 in fiscal 2023.
PWR stock has outperformed the S&P 500’s ($SPX) 22.8% gains over the past 52 weeks, with shares up 29.1% during this period. Similarly, it outperformed the S&P 500 Industrial Sector SPDR’s (XLI) 16.4% gains over the same time frame.
On May 2, PWR reported its Q1 results. Its adjusted EPS came to $1.41, surpassing Wall Street expectations of $1.26. The company’s revenue of $5.03 billion surpassed Wall Street forecasts of $4.96 billion. PWR expects full-year adjusted EPS to be between $8.15 and $8.65 and revenue between $22.50 billion and $23 billion. PWR shares closed down marginally on the day the results were released.
PWR’s overall performance can be attributed to the rising investments in new data centers. Given AI’s computing needs and data storage requirements, new data centers must be scaled up rapidly. Data centers require electrical systems, and with PWR being the nation’s largest electrical construction contractor, investors believe that the company will be a crucial beneficiary of these investments in building new data centers.
Analysts’ consensus opinion on PWR stock is bullish, with a “Strong Buy” rating overall. Out of 14 analysts covering the stock, 12 advise a “Strong Buy” rating, and two give a “Hold.” The average analyst price target for PWR is $282.92, indicating a potential upside of 15.5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
