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Quanta Services, Inc. (PWR), headquartered in Houston, Texas, delivers infrastructure solutions across electric and gas utilities, renewable energy, communications, and the pipeline and energy sectors. With a market capitalization of $44.9 billion, Quanta also specializes in installing transportation control and lighting systems, while offering electric power and communication services tailored to industrial and commercial clients. The specialty contractor for utility and energy companies is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Thursday, Oct. 31.
Ahead of the event, analysts expect PWR to report a profit of $2.46 per share on a diluted basis, up 18.3% from $2.08 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 current fiscal year 2024, analysts expect PWR to report EPS of $7.82, up 19.8% from $6.53 in fiscal 2023.
PWR stock has outperformed the S&P 500’s ($SPX) 37.5% gains over the past 52 weeks, with its shares up a whopping 85.3% during this period. Similarly, it outpaced the Industrial Select Sector SPDR Fund’s (XLI) 39.2% gains over the same time frame.
PWR has capitalized on increasing demand for utility infrastructure modernization and the expansion of renewable energy generation, supported by strong asset utilization and year-over-year earnings growth, which have driven its stock higher.
Despite this momentum, the stock dipped 4% after reporting its Q2 earnings on August 1. While adjusted EPS climbed 15.2% to $1.90, it narrowly missed analysts' expectations of $1.93. However, revenue came in at $5.6 billion, surpassing the projected $5.5 billion. Quanta raised its full-year 2024 guidance, forecasting adjusted EPS between $8.32 and $8.87, with revenue expected to range from $23.5 billion to $24.1 billion.
Analysts’ consensus opinion on PWR stock is extremely bullish, with a “Strong Buy” rating overall. Out of 17 analysts covering the stock, 13 advise a “Strong Buy” rating, and four give a “Hold.”
The average analyst price target for PWR is $317.69, indicating a potential upside of 3.6% from the current levels.
On the date of publication, Kritika Sarmah 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.
