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Quanta Services, Inc. (PWR), headquartered in Houston, Texas, is a major player in the engineering and construction services industry. Specializing in infrastructure solutions for the electric power, pipeline, and telecommunications sectors, Quanta serves a diverse range of clients, including utilities, energy companies, and communications providers. With a market cap of $39.09 billion, Quanta is a leading force in its industry. The company's commitment to innovative solutions and reliable project execution reinforces its position as a key contributor to the infrastructure services landscape.
Companies worth $10 billion or more are considered "large-cap" stocks, and Quanta Services exemplifies this category with its substantial size, stability, and influence in the engineering and construction services industry.
Shares of PWR have dropped 6.9% from their 52-week high of $286.87, which they reached on May 28. Over the past three months, PWR's shares have gained 2.8%, underperforming the broader Nasdaq Composite ($NASX), which gained 8.9% during the same period.
In the longer term, PWR is up 23.8% on a YTD basis, and the shares have gained 37.2% over the past 52 weeks. In comparison, the Nasdaq is up 19% in 2024 and 31.7% over the past year.
However, PWR has been trading above its 200-day moving average since early November 2023.
Quanta Services reported Q1 results on May 2, exceeding Wall Street expectations for EPS and revenue. The company reported a net income of $0.79 per share. Adjusted for amortization costs and stock option expenses, earnings were $1.41 per share, surpassing Wall Street expectations of $1.26 per share. The company's revenue for the period was $5.03 billion, exceeding the forecast of $4.96 billion.
Looking ahead, Quanta Services expects full-year earnings to range between $8.15 and $8.65 per share, with revenue projected between $22.5 billion and $23 billion. The stock declined marginally on the day it released earnings but gained marginally the following day.
Highlighting the contrast in performance, one of the industry participants, AECOM (ACM), has underperformed both PWR and NASX, with a 3.8% decline on a YTD basis.
Despite PWR's recent underperformance compared to NASX, analysts are highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy" from 14 analysts in coverage. The mean price target of $282.92 reflects a 5.9% premium over current levels.
On the date of publication, Rashmi Kumari 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.
