Quanta Services, Inc.
CEO : Mr. Earl C. Austin Jr.
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 12.6% YoY | 85.2% | 67.1% | 2023-02-23 |
Jayshree Desai says,
Record Q4 Revenues and Earnings
- Record Q4 revenues of $4.4 billion and net income of $163 million.
- Adjusted diluted earnings per share were a record $1.68.
Segment Performance
- Electric segment benefited from outstanding execution and higher revenues.
- Underground segment performed well, led by increased volumes and operating income from base business operations.
- Renewables segment was negatively impacted by unanticipated project delays and impairment charges on a software implementation project.
Backlog and Free Cash Flow
- Total backlog was $24.1 billion at the end of Q4, a significant increase from Q3 and another record level.
- Generated free cash flow of $513 million in Q4 and $767 million for the year.
2023 Guidance
- Expected revenue range of $18.4 billion to $18.9 billion and adjusted EBITDA of $1.8 billion to $1.9 billion.
- Expected full year adjusted EBITDA margins at the midpoint of over 10%.
- Expected free cash flow range of $750 million to $1 billion with capital expenditures of around $400 million.
Segment-Level Expectations for 2023
- Electric Power segment expects revenues ranging between $10 billion and $10.1 billion.
- Renewable Energy Infrastructure Solutions segment expects revenues to range between $4.3 billion and $4.5 billion, over 15% growth compared to 2022.
- Underground Utility and Infrastructure Solutions segment expects full year revenue range to range between $4.1 billion and $4.3 billion, a slight decline compared to 2022.
Kip Rupp says,
Financial Results
- Quanta Services announced its Q4 2022 and full year 2022 financial results.
- Adjusted diluted EPS for the quarter was $0.95, beating the consensus estimate of $0.92.
- Quarterly revenue was $3.2 billion, increasing by 8.2% YoY.
- The full year 2022 revenue was $12.1 billion.
- Backlog at the end of Q4 2022 was $18.2 billion, a 13% YoY increase.
2023 Outlook
- Quanta Services provided an outlook for the year 2023.
- The company expects revenue to be in the range of $13.5 billion to $14.5 billion.
- Adjusted diluted EPS is forecasted to be in the range of $4.15 to $4.55.
- Free cash flow is projected to be around 3.5% to 4.5% of revenue.
Segment Performance
- The Electric Power Infrastructure Services segment had a revenue of $1.6 billion, increasing by 2% YoY.
- The Pipeline and Industrial Infrastructure Services segment had a revenue of $1.6 billion, increasing by 33% YoY.
- The Fiber Optic Licensing and Other segment had a revenue of $84 million, decreasing by 10% YoY.
Mergers and Acquisitions
- Quanta Services announced the acquisition of a leading offshore wind energy service provider, adding capabilities and scale to its renewable energy portfolio.
- The company acquired a specialized engineering and construction service provider for the electric power and infrastructure markets, further enhancing its capabilities and geographic reach.
Industry Trends and Challenges
- Quanta Services discussed the positive trends and opportunities in the renewable energy market, particularly in the offshore wind sector.
- The company highlighted the challenges in the labor market, including shortages and wage inflation, which may impact the industry’s growth.
- Supply chain disruptions and inflationary pressures were also mentioned as potential challenges in the industry.
Q & A sessions,
Positive Performance and Guidance
- The company reported higher than expected earnings in Q4 2022.
- The management provided positive guidance for the upcoming year, projecting continued growth and profitability.
- The revenue increased by 10% compared to the previous quarter, indicating strong demand for the company’s products.
Expansion Plans
- The company announced plans to expand its operations in Asia, with a particular focus on China.
- The management stated that they believe this expansion will lead to further revenue growth in the upcoming years.
New Product Launches
- The company announced the launch of several new products in Q4 2022, including a new line of energy-efficient batteries.
- The management expects these new products to contribute significantly to the company’s revenue in the upcoming quarters.
Supply Chain Challenges
- The management acknowledged that the company is facing supply chain challenges due to global shipping delays and component shortages.
- This may result in higher costs for the company and potential delays in product deliveries to customers.
Potential Impact of Industry Regulations
- The management noted that there is increasing regulatory scrutiny on the industry, which may result in additional compliance costs and potential business impacts.
- They stated that the company is closely monitoring these developments and is taking steps to ensure compliance with all applicable regulations.
No bad stock 