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.
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 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.
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.
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.
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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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere