PWR Earnings Prediction
The chart below shows how PWR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PWR sees a -2.46% change in stock price 10 days leading up to the earnings, and a +3.99% change 10 days following the report. On the earnings day itself, the stock moves by +2.17%. This data can give you a slight idea of what to expect for the next quarter's release.
PWR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.49B
15.52%
16.07%
Gross Margin
13.89%
0.58%
6.11%
Operating Margin
6.55%
-6.43%
18.66%
Net Margin
4.61%
-5.34%
34.40%
EPS
1.95
6.56%
54.76%
No Data Available
PWR Earnings Analysis
Quanta Services, Inc. Corporation (PWR.N) Earnings Conference Call
Positive
Strong Financial Performance: Quanta delivered another quarter of double-digit growth in revenues, adjusted EBITDA and adjusted earnings per share, with revenues of $6.5 billion, adjusted EBITDA of $682.8 million, and adjusted EPS of $2.72.
Record Total Backlog: The company reported a record total backlog of $34 billion, indicating strong future revenue visibility and demand for its services.
Strong Free Cash Flow: Quanta generated free cash flow of $539 million during the quarter, reflecting healthy cash flow management and operational efficiency.
Earnings Momentum Growth: The company expects adjusted EPS to grow approximately 20% at the midpoint of its guidance over last year, demonstrating strong earnings momentum.
Workforce Expansion Strategy: Quanta's workforce increased to 62,000, showcasing its commitment to investing in skilled labor to meet growing demand in the utility and renewable energy sectors.
Negative
Organic Growth Challenges: 1. Organic Growth Concerns: Quanta's organic growth was only 5% in the third quarter, with expectations of double-digit growth for the year, indicating potential challenges in sustaining momentum without acquisitions.
Supply Chain Challenges: 2. Supply Chain Constraints: The company continues to face significant supply chain constraints, particularly with large transformers, which have resulted in a longer backlog rather than alleviating it.
Labor Shortage Challenges: 3. Labor Shortages: Despite efforts to expand the workforce, labor shortages remain a critical issue, impacting the ability to meet project demands and potentially delaying project timelines.
Hurricane Impact on Revenue: 4. Impact of Hurricanes: The response to Hurricanes Beryl and Helene diverted resources and impacted the industrial business, leading to delays in major projects and affecting overall revenue performance.
Free Cash Flow Sustainability: 5. Free Cash Flow Concerns: While free cash flow was strong at $539 million, the company indicated that this may not be sustainable going forward, with expectations of a more normalized conversion rate of 45% to 55% in future periods.
PWR FAQs
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PWR Earning Call Sentiment
Quanta Services, Inc. (PWR) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PWR.N
-18.32%Positive
The earnings call summary indicates strong financial performance with record revenue and backlog, positive adjusted EPS growth, and robust cash flow. The Q&A highlights strategic acquisitions, high demand for renewable projects, and effective risk management, although supply chain and labor challenges persist. The guidance is optimistic, forecasting double-digit growth in adjusted EBITDA and free cash flow. Despite some vague responses in the Q&A, the overall sentiment is positive, suggesting a likely stock price increase of 2% to 8%.