The 10-second takeaway
For the quarter ended June 30 (Q2), Quanta Services missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. GAAP earnings per share expanded.
Margins expanded across the board.
Quanta Services reported revenue of $1.47 billion. The 17 analysts polled by S&P Capital IQ hoped for a top line of $1.51 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $1.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.33. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS of $0.33 for Q2 were 6.5% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 16.4%, 90 basis points better than the prior-year quarter. Operating margin was 7.9%, 60 basis points better than the prior-year quarter. Net margin was 4.8%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.62 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $6.34 billion. The average EPS estimate is $1.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 473 members out of 488 rating the stock outperform, and 15 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Quanta Services a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quanta Services is buy, with an average price target of $33.91.
If you're interested in companies like Quanta Services, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add Quanta Services to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.