Quanta Services (PWR) Tops Q4 EPS by 23c, Revenues Miss; Offers FY21 Revenue Guidance Above Consensus, FY21 EPS Mid-Point Outlook Above Consensus

Quanta Services (NYSE: PWR) reported Q4 EPS of $1.22, $0.23 better than the analyst estimate of $0.99. Revenue for the quarter came in at $2.91 billion versus the consensus estimate of $2.92 billion.

"Quanta's utility solutions and delivery model continue to produce world-class execution and performance, which drove fourth quarter results that exceeded our expectations and completed a solid year for Quanta that included improved profitability and record earnings per share and backlog, despite the unprecedented conditions caused by the global pandemic," said Duke Austin, President and Chief Executive Officer of Quanta Services. "We believe our 2020 results reflect the dedication and operational excellence of our people, the resilience of our business and the sound execution of our strategic initiatives."

"Our 2021 expectations reflect growth in revenues, net income, adjusted EBITDA and adjusted earnings per share. More importantly, we continue to believe there is opportunity to drive multi-year revenue and earnings growth by focusing on our base business and continuing to provide infrastructure solutions that support our customers' efforts to increase reliability, safety, efficiency and connectivity through modernization. Incrementally, we believe our solutions play an important role in enabling policies and goals aimed at transitioning towards a carbon neutral economy over the long-term, which many of our utility customers are leading. We are successfully executing on our strategic growth initiatives, which, coupled with our strong financial profile, position us well to continue to deliver value to stockholders."

GUIDANCE:

Quanta Services sees FY2021 EPS of $4.02-$4.52, versus the consensus of $4.14. Quanta Services sees FY2021 revenue of $11.95-12.35 billion, versus the consensus of $11.91 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. More recently, the COVID-19 pandemic has significantly impacted certain of Quanta's operations and various markets where Quanta operates, which has created additional uncertainty. Therefore, Quanta's financial outlook reflects management's effort to align these uncertainties with the backlog the company is executing on and the opportunities expected to materialize during 2021.

Prior to the company's conference call, management will post a summary of Quanta's 2021 guidance expectations with additional commentary in the "Financial Info" area of the Investor Relations section of Quanta's website at http://investors.quantaservices.com.

The following forward-looking statements are based on current expectations, and actual results may differ materially. Quanta expects 2021 revenues to range between $11.95 billion and $12.35 billion, net income attributable to common stock to range between $458 million and $531 million, diluted earnings per share attributable to common stock to range between $3.16 and $3.66 and adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $4.02 and $4.52. EBITDA (a non-GAAP measure) is expected to range between $1.00 billion and $1.11 billion, and adjusted EBITDA (a non-GAAP measure) is expected to range between $1.09 billion and $1.19 billion. Additionally, Quanta's full year free cash flow (a non-GAAP measure) expectations are between $400 million and $600 million.

As discussed previously in this earnings release, as of December, 31, 2020, there were only a few contracts remaining to complete or exit within Quanta's LATAM operations. As a result, the Latin American financial results are not expected to be material in 2021, and therefore we do not expect to separately present LATAM financial results for future periods.

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

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