Quanta Services (NYSE:PWR) Shares Gap Up After Strong Earnings

Key Points

• Quanta Services shares surged, opening at $647 after previously closing at $561.14, following a strong earnings report.
• The company reported quarterly EPS of $4.24 versus the $3.31 consensus estimate, while revenue reached $9.56 billion, up 41.1% year over year and ahead of forecasts.
• Quanta approved a $1 billion share repurchase program and maintains a “Moderate Buy” consensus analyst rating with an average price target of $745.55, although insiders have sold more than $123 million of stock over the past 90 days.

Quanta Services, Inc. (NYSE:PWR - Get Free Report)'s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $561.14, but opened at $647.00. Quanta Services shares last traded at $648.0640, with a volume of 341,865 shares.

The construction company reported $4.24 earnings per share for the quarter, topping analysts' consensus estimates of $3.31 by $0.93. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The business had revenue of $9.56 billion for the quarter, compared to analyst estimates of $8.61 billion. During the same period in the previous year, the firm earned $2.48 EPS. The firm's revenue was up 41.1% compared to the same quarter last year. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS.

Quanta Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, July 13th. Stockholders of record on Wednesday, July 1st were paid a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Wednesday, July 1st. Quanta Services's dividend payout ratio (DPR) is currently 6.04%.

Quanta Services announced that its Board of Directors has approved a stock repurchase program on Friday, May 22nd that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the construction company to reacquire up to 0.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms have weighed in on PWR. UBS Group increased their price target on shares of Quanta Services from $646.00 to $900.00 and gave the company a "buy" rating in a report on Monday, May 4th. Zacks Research downgraded Quanta Services from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Citigroup increased their target price on Quanta Services from $640.00 to $733.00 and gave the stock a "buy" rating in a research note on Monday, April 27th. Robert W. Baird lifted their price target on Quanta Services from $606.00 to $777.00 and gave the stock an "outperform" rating in a report on Friday, May 1st. Finally, Roth Capital upped their price objective on Quanta Services from $600.00 to $650.00 and gave the company a "buy" rating in a report on Monday, April 6th. Seventeen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, Quanta Services presently has a consensus rating of "Moderate Buy" and an average price target of $745.55.

Insider Buying and Selling

In other Quanta Services news, CEO Earl C. Jr. Austin sold 130,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $770.65, for a total transaction of $100,184,500.00. Following the transaction, the chief executive officer owned 556,911 shares in the company, valued at $429,183,462.15. This represents a 18.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Paul Nobel sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $756.98, for a total transaction of $3,027,920.00. Following the transaction, the chief accounting officer directly owned 8,080 shares in the company, valued at $6,116,398.40. This represents a 33.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 159,992 shares of company stock worth $123,244,714. Company insiders own 0.60% of the company's stock.

Institutional Trading of Quanta Services

A number of institutional investors have recently modified their holdings of the stock. Brighton Jones LLC bought a new stake in Quanta Services during the fourth quarter worth about $298,000. Woodline Partners LP raised its position in shares of Quanta Services by 40.7% in the 1st quarter. Woodline Partners LP now owns 12,471 shares of the construction company's stock valued at $3,170,000 after buying an additional 3,606 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in shares of Quanta Services in the 2nd quarter valued at approximately $4,632,000. Marshall Wace LLP bought a new stake in shares of Quanta Services during the 2nd quarter worth approximately $996,000. Finally, StoneX Group Inc. acquired a new stake in shares of Quanta Services during the 2nd quarter worth approximately $204,000. 90.49% of the stock is currently owned by institutional investors.

Quanta Services Price Performance

The company's 50-day moving average is $682.41 and its 200-day moving average is $610.16. The firm has a market cap of $97.19 billion, a price-to-earnings ratio of 88.84, a price-to-earnings-growth ratio of 2.32 and a beta of 1.21. The company has a current ratio of 1.14, a quick ratio of 1.09 and a debt-to-equity ratio of 0.57.

Quanta Services Company Profile

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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