What were the main drivers of revenue growth in the first quarter of 2018?

Revenue growth was primarily driven by the Electric Power Infrastructure Services segment, which benefited from increased customer spending on electric transmission projects and a rise in emergency restoration services due to winter storms. Favorable foreign currency exchange rates and revenues from recent acquisitions also contributed positively.

What challenges did the Oil and Gas Infrastructure Services segment face?

The Oil and Gas Infrastructure Services segment faced decreased customer capital spending, particularly on large-diameter pipeline transmission projects, leading to lower revenues and operating income. This was exacerbated by delays in project timing due to permitting, environmental regulations, and seasonal weather patterns.

How has Quanta's acquisition strategy impacted its financial performance?

Quanta completed two acquisitions in January 2018, which contributed to revenue growth, particularly in the Electric Power segment. However, these acquisitions also led to increased selling, general, and administrative expenses, including acquisition and integration costs.

What is the outlook for Quanta's backlog and future performance?

Quanta's backlog remained strong at $6.88 billion as of March 31, 2018, with $4.15 billion expected to be recognized within the next twelve months. The company expressed a positive long-term outlook, anticipating continued demand across its segments, particularly in electric power infrastructure and certain areas of oil and gas services, despite ongoing risks and challenges.

PWR 10-Q Quarterly Report Q1 FY2018 — Revenue, Net Income, EPS

Summary

Quanta Services, Inc. (PWR) reported its first-quarter 2018 financial results, showing a significant increase in revenues driven primarily by its Electric Power Infrastructure Services segment. Revenues grew by 11.0% year-over-year to $2.42 billion, with the Electric Power segment revenue increasing by 28.6% due to strong demand for transmission projects and emergency restoration services. However, the Oil and Gas Infrastructure Services segment experienced a revenue decline of 11.4%, attributed to decreased customer spending on large pipeline projects. This segment's operating income also saw a substantial decrease. While overall gross profit improved, operating income remained relatively flat due to increased selling, general, and administrative expenses, largely driven by acquisition costs. The company's backlog remains robust, providing visibility into future revenue streams.

Financial Highlights

55 data points

Beta

Revenue

$2.42B

0.1% Gross Margin

Net Income

$38.61M

0.0% Net Margin

EPS (Diluted)

$0.24

Total Assets

$6.65B

Cash & Equivalents

$101.74M

Free Cash Flow

-$40.81M

Financial Statements

Beta

Revenue	$2.42B
Cost of Revenue	$2.12B
Gross Profit	$301.05M
SG&A Expenses	$215.42M
Operating Income	$75.22M
Interest Expense	$6.78M
Net Income	$38.61M
EPS (Basic)	$0.24
EPS (Diluted)	$0.24
Shares Outstanding (Basic)	156.55M
Shares Outstanding (Diluted)	157.56M

Key Highlights

1Total revenues increased by 11.0% to $2.42 billion, primarily due to strong performance in the Electric Power Infrastructure Services segment.
2The Electric Power Infrastructure Services segment saw a significant revenue increase of 28.6% to $1.57 billion, driven by transmission projects and emergency restoration services.
3The Oil and Gas Infrastructure Services segment experienced a revenue decline of 11.4% to $849.1 million, impacted by reduced customer capital spending on pipeline projects.
4Gross profit increased by 13.1% to $301.0 million, and gross profit margin improved to 12.5% from 12.2%.
5Selling, general, and administrative expenses increased by 16.7% to $215.4 million, largely due to acquisition-related costs.
6The company's backlog at the end of the quarter was $6.88 billion, with $4.15 billion expected to be recognized within 12 months.
7Quanta completed two acquisitions in January 2018, further expanding its Electric Power Infrastructure Services capabilities.

QUANTA SERVICES, INC. Quarterly Report for Q1 Ended Mar 31, 2018

Summary

Financial Highlights

Key Highlights

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