Quanta Services (PWR) Tops Q4 EPS by 11c, Revenues Beat; Offers FY20 Revenue Guidance Below Consensus

Quanta Services (NYSE: PWR) reported Q4 EPS of $0.93, $0.11 better than the analyst estimate of $0.82. Revenue for the quarter came in at $3.11 billion versus the consensus estimate of $3.03 billion.

"Quanta's strong fourth quarter results complete the fourth consecutive year of revenue growth and record adjusted diluted earnings per share and backlog for the company. We finished 2019 on a high note and are pleased with our performance," said Duke Austin, President and Chief Executive Officer of Quanta Services. "More importantly, we believe our strategic position in the marketplace remains strong and we are well positioned for continued profitable growth in the coming years. Our outlook for 2020 reflects expectations for another record year with continued solid growth of our base business, improved profitability and growth in adjusted EBITDA, earnings per share and cash flow. We are successfully executing on our strategic growth initiatives, which, coupled with our strong financial profile, positions us well to deliver value to stockholders."

GUIDANCE:

Quanta Services sees FY2020 EPS of $3.62-$4.02, versus the consensus of $3.86. Quanta Services sees FY2020 revenue of $12.2-12.6 billion, versus the consensus of $12.86 billion.

The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, project timing, execution challenges and other factors have impacted the company's historical results, and may impact Quanta's future financial results. Therefore, Quanta's financial outlook for revenues, margins and earnings reflects management's effort to align these uncertainties with the backlog the company is executing on and the opportunities expected to materialize during 2020. The following forward-looking statements are based on current expectations, and actual results may differ materially.

Quanta expects 2020 revenues to range between $12.2 billion and $12.6 billion, net income attributable to common stock to range between $439 million and $499 million and diluted earnings per share attributable to common stock to range between $2.93 and $3.33. Quanta expects adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.62 and $4.02. EBITDA (a non-GAAP measure) is expected to range between $961 million and $1.05 billion, and adjusted EBITDA (a non-GAAP measure) is expected to range between $1.03 billion and $1.12 billion. See the accompanying tables for reconciliations of estimated adjusted diluted earnings per share attributable to common stock to estimated GAAP diluted earnings per share attributable to common stock for the full-year 2020 and estimated EBITDA and estimated adjusted EBITDA to estimated GAAP net income attributable to common stock for the full-year 2020.

Quanta\'s outlook for 2020 includes the expected results of its Latin American (LATAM) operations. The company has completed a strategic review of its LATAM operations due to the circumstances it experienced in Peru in 2019 and political volatility in other countries in the region and has concluded it will pursue the orderly exit of these operations. The company is considering various options to that end and believes a significant portion of the process could be achieved in 2020. Quanta believes this course of action is prudent and will result in improved profitability and optimization of the company\'s operational portfolio. In 2020, Quanta's LATAM operations are expected to generate revenues of $20 million to $40 million, an operating loss of $15 million to $20 million and diluted loss per share of $0.10 to $0.13.

For earnings history and earnings-related data on Quanta Services (PWR) click here.

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