Summary
Quanta Services, Inc. (PWR) reported its financial results for the nine months ended September 30, 2016. Total revenues were $5.55 billion, a slight decrease of 2.2% compared to the same period in the previous year. This decline was primarily driven by reduced customer spending in the Electric Power Infrastructure Services segment due to regulatory and environmental requirements, and lower oil and gas infrastructure services revenue impacted by regulatory delays and lower commodity prices. Despite the revenue dip, the company saw an improvement in gross profit, increasing by 0.8% year-over-year, with gross margin expanding to 12.7% from 12.3%. This improvement was attributed to better resource utilization and project performance. However, operating income decreased by 13.2% to $202.9 million, impacted by higher selling, general, and administrative expenses and significant project losses in the Electric Power Infrastructure Services segment related to an Alaska power plant project. The company also reported net income attributable to common stock of $110.8 million for the nine months ended September 30, 2016, a substantial decrease from $316.0 million in the prior year, largely due to a significant gain from discontinued operations in the prior year.
Financial Highlights
51 data points| Revenue | $2.04B |
| Gross Profit | $302.58M |
| SG&A Expenses | $164.32M |
| Operating Income | $130.16M |
| Interest Expense | $3.73M |
| Net Income | $73.74M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 155.02M |
| Shares Outstanding (Diluted) | 155.02M |
Key Highlights
- 1Revenues decreased by 2.2% to $5.55 billion for the nine months ended September 30, 2016, primarily due to reduced customer spending in the Electric Power and Oil & Gas segments, influenced by regulatory hurdles and lower commodity prices.
- 2Gross profit increased by 0.8% to $706.1 million, and gross margin improved to 12.7% from 12.3% year-over-year, driven by better resource utilization and project performance.
- 3Operating income declined by 13.2% to $202.9 million, impacted by increased SG&A expenses and specific project losses.
- 4Net income attributable to common stock significantly decreased to $110.8 million from $315.9 million, largely due to a substantial gain from discontinued operations in the prior year's period.
- 5The company completed five acquisitions in the first nine months of 2016, primarily in the Electric Power Infrastructure Services segment, aiming to enhance service offerings.
- 6Backlog stood at $9.84 billion as of December 31, 2015, and increased to $5.77 billion (12-month realization) as of September 30, 2016, indicating continued project pipeline.
- 7The company maintained compliance with its credit facility covenants and had $1.02 billion available under its revolving credit facility as of September 30, 2016, indicating solid liquidity.