Quanta Services Exceeds Expectations in Q1 2024 Earnings Report

Truist Securities's Jamie Cook raised their price target on Quanta Services (NYSE: PWR) by 1.3% from $301 to $305 on 2024/05/06. The analyst reiterated their Strong Buy rating on the stock.

In their analysis, Cook highlighted Quanta Services' Q1 2024 earnings report, which was released on May 2nd. Cook described the results as mixed, with Electric Power's 9.8% margin exceeding management's guidance, and free cash flow "coming in strong" at $181.2 million. However, Renewable's 4.7% margin fell short of the guidance of 6% to 7%.

Despite the mixed results, Cook expressed confidence in Quanta Services, stating, "we would buy any post-print weakness as Quanta Services' track record implies beats and raises ahead." This positive outlook is supported by Quanta Services' impressive Q1 2024 performance.

For Q1 2024, Quanta Services reported earnings per share (EPS) of $1.41, surpassing the Zacks Consensus Estimate of $1.26 and showing a 13.7% increase compared to Q1 2023's EPS of $1.24. The company's revenue for the quarter was $5.03 billion, beating the Zacks Consensus Estimate of $4.96 billion and reflecting a 13.6% increase compared to Q1 2023's revenue of $4.43 billion.

Furthermore, Quanta Services reported adjusted EBITDA of $387.3 million for Q1 2024, up from $332.36 million in Q1 2023. The company also saw an increase in adjusted net income, with $210.85 million in Q1 2024 compared to $183.73 million in Q1 2023.

Looking ahead, Quanta Services' management provided guidance for fiscal year 2024, projecting EPS of $8.15 to $8.65 and revenue of $22.5 billion to $23 billion. The company also expects adjusted EBITDA of $2.13 billion to $2.25 billion and adjusted net income of $1.22 billion to $1.3 billion for the fiscal year.

Quanta Services' President and CEO, Duke Austin, expressed optimism about the company's performance in Q1 2024, stating, "Quanta's Q1 results...demonstrate an overall good start to the year." Austin highlighted the strong performance of the Electric Power Infrastructure Solutions segment and the company's record cash flow.

Austin also emphasized the increasing demand for Quanta Services' solutions, driven by the adoption of new technologies, federal and state policies, and the need for infrastructure modernization. He noted the momentum building across the company's portfolio of solutions and expressed confidence in achieving the FY 2024 expectations.

In addition to the analyst rating for Quanta Services, Cook also made changes to other stocks in their portfolio. Cook raised the price target on Mastec Inc by 13.5%, from $96 to $109, and reiterated their Hold rating. They lowered the price target on Cnh Industrial Nv by -5.6%, from $18 to $17, while maintaining their Strong Buy rating. Cook also raised the price target on Fluor Corp by 2.2%, from $46 to $47, and reiterated their Strong Buy rating.

According to WallStreetZen, 87.5% of top-rated analysts currently rate Quanta Services as a Strong Buy or Buy. Only 12.5% of analysts see it as a Hold, and no analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Quanta Services' upcoming year will deliver earnings per share (EPS) of $6.33. If the analysts' predictions hold true, this would represent a 19.9% increase in EPS on a year-over-year basis.

Since the release of Quanta Services' latest quarterly report on May 2nd, the stock price has risen by 5.7%. On a year-over-year basis, the stock has seen a remarkable increase of 59.6%. During this period, Quanta Services has outperformed the S&P 500, which has risen by 25.2%.

Truist Securities analyst Jamie Cook is ranked among the top 15% of Wall Street analysts by WallStreetZen. With an average return of 2.9% and a 61.7% win rate, Cook specializes in the Consumer Cyclical, Industrials, and Technology sectors.

Quanta Services Inc. is a company that specializes in installing, upgrading, repairing, and maintaining various infrastructure systems, including electric power transmission and distribution networks, renewable energy facilities, and pipeline transmission and distribution systems. The company also provides emergency power restoration services. Quanta Services, headquartered in Houston, TX, was incorporated in 1997.

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