NYSE$PWR

Quanta Services Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Quanta Services' first quarter performance was solid despite unprecedented health and economic conditions.

Quanta Services reported revenues of $2.76 billion and net income of $38.7 million, or $0.26 per diluted share, for the first quarter of 2020. Adjusted diluted earnings per share was $0.47. The company ended the quarter with a total backlog of $14.7 billion and total liquidity of $1.7 billion. The company has adjusted its 2020 outlook to reflect the estimated impact of COVID-19 and other factors on operations.

  • Revenues in the first quarter of 2020 were $2.76 billion compared to revenues of $2.81 billion in the first quarter of 2019.
  • Net income attributable to common stock was $38.7 million, or $0.26 per diluted share.
  • Adjusted diluted earnings per share attributable to common stock was $0.47 for the first quarter of 2020 compared to $0.96 for the first quarter of 2019.
  • Total Backlog of $14.7 Billion

Headline financials

Total Revenue

$2.76B

Previous: $2.81B-1.5%
EPS (adj)

$0.47

Previous: $0.96-51.0%
Total Backlog

$14.7B

No prior period
Capital Expenditures

-$68.1M

Previous: -$68.6M+0.8%
Free Cash Flow

-$29.4M

Previous: $52.4M-156.1%
Net Income

$38.7M

Previous: $121M-68.0%
Operating Income

$80.7M

Previous: $119M-32.4%
Gross Profit

$332M

Previous: $364M-8.7%
Cash & Equivalents

$377M

Previous: $85.4M+341.6%
Total Assets

$8.23B

Previous: $7.65B+7.5%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

Quanta Services · Revenue · Quarterly

$2.76B

Q1 2020-1.5%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Quanta Services · $1.38B total across 1 segment · Q3 2023

  • Underground Utility and Infrastructure
    $1.38B+15.5%

Forward guidance

Quanta has adjusted its full-year financial expectations and now expects revenues to range between $11.4 billion and $11.8 billion, net income attributable to common stock to range between $325 million and $370 million, diluted earnings per share attributable to common stock to range between $2.25 and $2.57 and adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.04 and $3.36.

Tailwinds

  • The long-term outlook for Quanta’s business is positive.
  • Quanta estimates that 80% to 90% of its forecasted full year 2020 revenue will be derived from utility, communications and certain pipeline and industrial infrastructure services that the company believes are resilient.
  • Quanta is maintaining its full year free cash flow expectations of between $400 million and $600 million.
  • Management believes continuing to provide expectations commentary to the investment community in times of uncertainty has value
  • Quanta believes this course of action is prudent and will result in improved profitability and optimization of the company’s operational portfolio.

Headwinds

  • 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.
  • Quanta estimates at least 70% of the change in the company’s full-year 2020 expectations as compared to its prior expectations can be attributed to COVID-19 related disruptions
  • certain portions of Quanta’s Pipeline and Industrial Infrastructure Services segment are challenged, particularly in the second quarter of 2020.
  • Quanta’s LATAM operations are expected to generate an operating loss of $25 million to $30 million and diluted loss per share of $0.17 to $0.21.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+5.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+12.9%

Q1 2026

Best reaction

-11.0%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.9%+22.8%+13.1%
Q4 2025+5.8%+9.4%+6.9%
Q3 2025+1.2%-2.2%+3.6%
Q2 2025-1.2%-5.3%-8.1%
Q1 2025+10.0%+8.5%+17.0%
Q4 2024-3.7%-9.5%-8.2%
Q3 2024-0.2%+3.0%+5.0%
Q2 2024-2.6%-0.6%-1.0%
Q1 2024-0.2%+1.3%-0.5%
Q4 2023-3.0%-7.7%-8.6%
Q3 2023+6.0%+3.4%+19.4%
Q2 2023-1.0%+0.2%+5.0%
Q1 2023+1.7%+1.7%+7.1%
Q4 2022+8.2%+8.8%+8.3%
Q3 2022+7.3%+8.0%+11.9%
Q2 2022-0.1%-0.9%+2.6%
Q1 2022-3.0%-7.8%+6.5%
Q4 2021+10.1%+10.2%+36.6%
Q3 2021+0.5%+1.2%-3.6%
Q2 2021+3.7%+5.8%+30.3%
Q1 2021+2.9%+1.2%-4.3%
Q4 2020+3.4%+3.8%+7.4%
Q3 2020+2.5%+10.6%+14.9%
Q2 2020+8.4%+16.5%+21.5%
Q1 2020+1.3%-5.9%+25.0%
Q4 2019+2.8%+4.0%-19.5%
Q3 2019+4.0%+3.0%-1.0%
Q2 2019-8.0%-7.4%-4.5%
Q1 2019-2.1%-3.4%-3.7%
Q4 2018-0.1%-0.7%+4.9%
Q3 2018+1.5%-3.4%-10.0%
Q2 2018-0.7%-1.8%-2.3%
Q1 2018+2.1%+2.7%+4.4%
Q4 2017-3.4%-2.3%-2.0%
Q3 2017-1.4%-1.6%+8.4%
Q2 2017+1.1%-1.9%-2.2%
Q1 2017-2.2%-5.7%-7.6%
Q4 2016+0.5%+0.9%-0.6%
Q3 2016+7.2%+9.7%+22.6%
Q2 2016-0.2%+0.2%+4.7%
Q1 2016+1.8%
Q4 2015+3.4%
Q3 2015+2.5%
Q2 2015+3.4%
Q1 2015+4.1%
Q4 2014-0.3%
Q3 2014+2.1%
Q2 2014+3.8%
Q1 2014-1.9%
Q4 2013+1.8%
Q3 2013-0.1%
Q2 2013+1.0%
Q1 2013-1.0%
Q4 2012-0.0%
Q3 2012-1.4%
Q2 2012+0.1%
Q1 2012-1.4%
Q4 2011-0.6%
Q3 2011-6.6%
Q2 2011-11.0%
Q1 2011+2.0%
Q4 2010-0.6%
Q3 2010-1.0%
Q2 2010+0.2%
Q1 2010+4.7%

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