Zacks Investment Research Lowers Quanta Services, Inc. (PWR) to Hold
Quanta Services, Inc. (NYSE:PWR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Quanta Services’ second-quarter 2017 adjusted earnings per share of $0.46 missed the Zacks Consensus Estimate by 8%. However, non-GAAP earnings per share of $0.50 grew a massive 177.8% on the back of robust top line and sound execution of projects. Year to date, shares of Quanta Services have yielded a positive return, in contrast to the industry's decline. Quanta Services remains confident about the prospects of its end markets over the next two years. However, on the flip side, lack of a commissioner quorum in Federal Energy Regulatory Commission (“FERC”) has put up a lot of major projects on hold, adding to Quanta Services’ woes. Also, project losses and delays, pose as threats. In addition, seasonality and the cancellation of pipeline projects in the oil and gas business are likely to impact the company’s backlog. Also, currency fluctuations add to the company's woes.”
Several other research analysts have also issued reports on the stock. BidaskClub lowered shares of Quanta Services from a “sell” rating to a “strong sell” rating in a research report on Friday, June 23rd. ValuEngine raised shares of Quanta Services from a “hold” rating to a “buy” rating in a research report on Friday, June 2nd. TheStreet lowered shares of Quanta Services from a “b” rating to a “c+” rating in a research report on Friday, May 26th. Stifel Nicolaus reissued a “buy” rating and issued a $43.00 price target on shares of Quanta Services in a research report on Friday, July 7th. Finally, UBS AG raised shares of Quanta Services from a “neutral” rating to a “buy” rating and increased their price target for the stock from $38.00 to $42.00 in a research report on Thursday, July 13th. Five analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of $41.11.
Shares of Quanta Services (NYSE:PWR) traded up 0.03% during mid-day trading on Wednesday, reaching $36.55. The company had a trading volume of 949,790 shares. The company’s 50-day moving average price is $33.19 and its 200-day moving average price is $34.71. Quanta Services has a 52-week low of $24.49 and a 52-week high of $38.82. The company has a market capitalization of $5.56 billion, a PE ratio of 25.26 and a beta of 0.84.
Quanta Services (NYSE:PWR) last posted its quarterly earnings results on Thursday, August 3rd. The construction company reported $0.50 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.53 by $0.03. Quanta Services had a return on equity of 8.36% and a net margin of 3.21%. The business had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.13 billion. During the same period last year, the company earned $0.18 EPS. The business’s revenue for the quarter was up 22.8% on a year-over-year basis. On average, analysts forecast that Quanta Services will post $2.03 earnings per share for the current fiscal year.
Quanta Services announced that its board has authorized a stock buyback program on Thursday, May 25th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the construction company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.
Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. boosted its stake in Quanta Services by 3,403.4% in the first quarter. BlackRock Inc. now owns 8,360,060 shares of the construction company’s stock worth $310,240,000 after buying an additional 8,121,431 shares during the last quarter. Victory Capital Management Inc. boosted its stake in Quanta Services by 38.6% in the second quarter. Victory Capital Management Inc. now owns 6,314,406 shares of the construction company’s stock worth $207,871,000 after buying an additional 1,758,319 shares during the last quarter. Peconic Partners LLC boosted its stake in Quanta Services by 132.7% in the first quarter. Peconic Partners LLC now owns 2,850,000 shares of the construction company’s stock worth $105,764,000 after buying an additional 1,625,000 shares during the last quarter. Vanguard Group Inc. boosted its stake in Quanta Services by 4.6% in the first quarter. Vanguard Group Inc. now owns 14,220,685 shares of the construction company’s stock worth $527,729,000 after buying an additional 621,973 shares during the last quarter. Finally, Morgan Stanley boosted its stake in Quanta Services by 245.9% in the first quarter. Morgan Stanley now owns 812,832 shares of the construction company’s stock worth $30,164,000 after buying an additional 577,842 shares during the last quarter. 89.40% of the stock is owned by institutional investors.
Quanta Services Company Profile
Quanta Services, Inc is a provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and selected other international markets. The Company operates through two segments: Electric Power Infrastructure Services, which provides network solutions to customers in the electric power industry, and Oil and Gas Infrastructure Services, which provides network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products.
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