Quanta Services Beats on Both Top and Bottom Lines

Quanta Services (NYS: PWR) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quanta Services beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Quanta Services notched revenue of $1.67 billion. The 16 analysts polled by S&P Capital IQ looked for revenue of $1.62 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.51 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.47. The eight earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. Non-GAAP EPS of $0.47 for Q4 were 31% higher than the prior-year quarter's $0.36 per share. GAAP EPS of $0.46 for Q4 were 48% higher than the prior-year quarter's $0.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.1%, 380 basis points better than the prior-year quarter. Operating margin was 9.6%, 350 basis points better than the prior-year quarter. Net margin was 5.9%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $6.34 billion. The average EPS estimate is $1.47.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 479 members out of 496 rating the stock outperform, and 17 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give Quanta Services a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quanta Services is outperform, with an average price target of $31.31.

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The article Quanta Services Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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