Summary
Quanta Services, Inc. (PWR) reported mixed financial results for the second quarter and first half of 2019, with revenue growth but a significant decrease in profitability driven by a substantial charge related to a terminated telecommunications project in Peru. For the three months ended June 30, 2019, revenues increased by 6.9% year-over-year to $2.84 billion, while net income attributable to common stock decreased by 63.4% to $27.3 million. This decline was heavily influenced by a $79.2 million charge related to the Peru project, which significantly impacted gross profit and operating income. The Electric Power Infrastructure Services segment saw revenue growth but a sharp decline in operating income due to this project issue, while the Pipeline and Industrial Infrastructure Services segment experienced revenue growth and a substantial increase in operating income. For the first six months of 2019, revenues rose by 11.3% to $5.65 billion. However, net income attributable to common stock also decreased by 14.4% to $147.8 million. The company's balance sheet shows total assets of $8.02 billion and total liabilities of $4.25 billion at the end of June 2019. Key balance sheet changes include an increase in long-term debt, reflecting borrowings under its credit facility, and the adoption of new lease accounting standards which added significant operating lease assets and liabilities. The company continues to execute its growth strategy through acquisitions, with two acquisitions completed in the first half of 2019.
Financial Highlights
54 data points| Revenue | $2.84B |
| Cost of Revenue | $2.52B |
| Gross Profit | $319.50M |
| SG&A Expenses | $223.94M |
| Operating Income | $78.58M |
| Interest Expense | $15.82M |
| Net Income | $27.34M |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.19 |
| Shares Outstanding (Basic) | 145.94M |
| Shares Outstanding (Diluted) | 147.24M |
Key Highlights
- 1Total revenues for the six months ended June 30, 2019, increased by 11.3% to $5.65 billion compared to the prior year period.
- 2Net income attributable to common stock for the six months ended June 30, 2019, decreased by 14.4% to $147.8 million.
- 3A significant charge of $79.2 million related to the termination of a telecommunications project in Peru negatively impacted profitability in the second quarter and first half of 2019.
- 4The Electric Power Infrastructure Services segment's operating income decreased significantly due to the Peru project issue, despite revenue growth.
- 5The Pipeline and Industrial Infrastructure Services segment showed strong performance with revenue growth and a substantial increase in operating income.
- 6Total assets grew to $8.02 billion as of June 30, 2019, while total liabilities increased to $4.25 billion.
- 7The company ended the period with $73.4 million in cash and cash equivalents and a total of $1.55 billion in long-term debt obligations.
- 8Two acquisitions were completed in the first half of 2019, expanding the company's electric power infrastructure services capabilities.