Quanta Services, Inc. (PWR) is preparing to announce its third-quarter 2023 financial results on November 2nd. While the company’s adjusted earnings per share (EPS) fell short of expectations in the previous quarter, revenues exceeded estimates. Year-over-year, Quanta Services experienced significant revenue growth and a moderate increase in EPS.
One notable trend in the upcoming quarter is Quanta Services’ focus on embracing technological solutions that aim to reduce carbon emissions and support the transition to a cleaner energy future. The company is investing in initiatives such as carbon management, compliance consulting, and the development of essential infrastructure for carbon-free energy solutions. These efforts are expected to contribute to the company’s profitability.
Quanta Services is also capitalizing on emerging megatrends in the industry. Initiatives like electric vehicle charging infrastructure and the undergrounding of electrical infrastructure are gaining momentum, and Quanta Services is well-positioned to lead these advancements. These factors are likely to have a positive impact on the company’s bottom line.
In terms of segment performance, the Electric Power Infrastructure Services segment is expected to benefit from ongoing grid modernization, system hardening, and renewable energy interconnections. Additionally, larger transmission projects in Canada and revenues from acquired businesses are likely to contribute to Quanta Services’ growth in the upcoming quarter.
The Underground Utility and Infrastructure Solutions segment is experiencing higher demand for gas utility and pipeline integrity services, as well as a rebound in deferred services due to the effects of COVID-19. While this segment’s third-quarter revenues are anticipated to be in line with the previous quarter, margins are expected to decline sequentially.
The Renewable Energy Infrastructure Solutions segment, which includes services and solutions for supporting renewable energy generation and storage, is also expected to contribute to Quanta Services’ revenue growth this quarter.
While the Zacks Model does not conclusively predict an earnings beat for Quanta Services, it is essential to consider that the company’s success in the upcoming quarter relies on various factors, including the implementation of technological solutions, market demand, and project execution.
As investors await Quanta Services’ third-quarter earnings report, it is worth noting that other companies in the construction sector, such as Louisiana-Pacific Corporation (LPX), Dycom Industries (DY), and Construction Partners, Inc. (ROAD), have favorable elements that increase their chances of beating earnings expectations.
Frequently Asked Questions (FAQ):
Q: What is Quanta Services’ focus for the upcoming quarter?
A: Quanta Services is focused on implementing technological solutions to reduce carbon emissions and support the transition to clean energy.
Q: Which segments are expected to drive Quanta Services’ growth?
A: The Electric Power Infrastructure Services segment and the Renewable Energy Infrastructure Solutions segment are expected to contribute to Quanta Services’ growth.
Q: Are there any other companies in the construction sector that are likely to beat earnings expectations?
A: Yes, Louisiana-Pacific Corporation (LPX), Dycom Industries (DY), and Construction Partners, Inc. (ROAD) are some companies in the construction sector with favorable elements for beating earnings expectations.
Q: Does the Zacks Model predict an earnings beat for Quanta Services?
A: The Zacks Model does not conclusively predict an earnings beat for Quanta Services this time around.
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– Quanta Services, Inc.: https://www.quantaservices.com/