Group 1: Industry Overview - The transition to lower-carbon energy requires an estimated $3 trillion in annual investments through the end of the decade to achieve net zero carbon emissions [1] - The U.S. is expected to deploy 375-450 gigawatts (GW) of new renewable and storage capacity over the next seven years, which is three times the capacity deployed in the previous seven years [3] Group 2: Company Profile - Quanta Services - Quanta Services derives approximately 75% of its revenues from utilities and renewable energy developers, positioning it well to capitalize on the growing infrastructure market related to energy transition [2] - The company provides specialized infrastructure solutions across various sectors, including utilities, renewable energy, technology, communications, and pipelines, serving major clients like Duke Energy and NextEra Energy [9] Group 3: Financial Performance - Quanta Services reported a revenue increase from $5.6 billion to $6.5 billion and adjusted earnings per share rose from $2.24 to $2.72 in the third quarter, alongside generating $539.5 million in cash flow [5] - The company ended the third quarter with a record backlog of $34 billion in projects, indicating strong future growth potential [12] Group 4: Strategic Initiatives - Quanta Services has made several acquisitions and investments to enhance its capabilities, including acquiring Cupertino Electric and investing in Hybar [6] - The company is focused on organic growth through capital reinvestment, which is expected to drive solid revenue and earnings growth over the long term [13] Group 5: Market Outlook - The ongoing investment in lower-carbon energy infrastructure is expected to drive continued healthy growth for Quanta Services, making it a compelling investment opportunity in this megatrend [14]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Quanta Services (PWR) .Quanta Services currently has an average brokerage recommendation (ABR) ...

Core Viewpoint - Captiva Verde Wellness Corp. has announced an increase in its private placement from 150 million units to 160 million units, aiming to raise up to C$3.2 million for general working capital and sustainable real estate projects [1] Group 1: Private Placement Details - The private placement will consist of 160 million units priced at C$0.02 per unit, with each unit comprising one common share and one common share purchase warrant [1] - Each warrant allows the holder to acquire an additional common share at an exercise price of C$0.05 for three years [1] - The company has already received funds for 10 million units and will close this first tranche, with the second tranche of 150 million units expected to close within 45 days [1] Group 2: Option Agreement - Under an Option Agreement, the Strasser Group has granted the company the option to identify purchasers of up to 37 million common shares at a price of C$0.02 per share [4] - The option can be exercised in three tranches, with 12.3 million shares already purchased on October 31, 2024, and the second tranche to be funded this week [4]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Group 1 - Quanta Services, Inc. will participate in two institutional investor conferences in Q4 2024: the Baird Global Industrial Conference on Nov. 13 and the UBS Global Industrials and Transportation Conference on Dec. 3 [1][2][3] - CEO Duke Austin and CFO Jayshree Desai will meet with institutional investors and participate in fireside chats at both conferences, with the Baird chat being exclusive to Baird's clients and the UBS chat being broadcast live [2][3] - Quanta Services is recognized as a leader in providing specialized infrastructure solutions across various industries, including utility, renewable energy, technology, communications, pipeline, and energy [4] Group 2 - The company offers a comprehensive range of services, including designing, installing, repairing, and maintaining energy and communications infrastructure [4] - Quanta operates in the United States, Canada, Australia, and select international markets, demonstrating its capability to handle projects of varying scopes [4]

Financial Data and Key Metrics Changes - Quanta reported third quarter revenues of $6.5 billion, net income attributable to common stock of $293.2 million, or $1.95 per diluted share, and adjusted diluted earnings per share of $2.72 [18] - Adjusted EBITDA was $682.8 million, representing 10.5% of revenues [18] - The company generated cash flow from operations of $739.9 million and free cash flow of $539.5 million during the quarter [19] - The total backlog reached a record $34 billion [12] Business Line Data and Key Metrics Changes - The renewable segment showed improved margins, with expectations for double-digit margins in the future [30][32] - The traditional Transmission and Distribution (T&D) business experienced organic growth of 5% in the third quarter, with double-digit growth forecasted for the year [34] - The Cupertino Electric acquisition is expected to enhance capabilities and provide synergies, particularly in the data center business [31] Market Data and Key Metrics Changes - Utilities across the U.S. are forecasting significant increases in power demand, driven by new technologies and infrastructure needs [13] - The company noted record levels of bids and proposals for renewable transmission projects, indicating strong market demand [25][26] Company Strategy and Development Direction - Quanta is focusing on infrastructure investment, with a diverse service line creating platforms for growth and expanding the total addressable market [16] - The integration of Cupertino Electric is progressing well, enhancing the company's capabilities in critical path electric infrastructure solutions [14] - The company aims to maintain a leverage profile below two times by year-end and expects record levels of free cash flow [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's execution of its strategic plan and highlighted the favorable end market trends [15] - The company anticipates continued strength in the coming years, with expectations for adjusted EPS to grow approximately 20% year-over-year [15] - Management acknowledged the challenges posed by supply chain constraints but emphasized the company's proactive measures to mitigate risks [23][24] Other Important Information - Quanta's employee relief fund, Quanta Cares, provided support to approximately 125 employees affected by recent hurricanes [11] - The company is actively involved in community support during natural disasters, leveraging resources to assist in recovery efforts [10] Q&A Session Summary Question: Transformer manufacturing capability acquisition - Management confirmed the acquisition of a small transformer manufacturing company in New York, which will help address supply chain constraints and enhance internal capabilities [23] Question: Renewable transmission projects visibility - Management indicated record levels of bids and proposals for renewable transmission projects, with expectations for continued growth in this area [25] Question: Renewable margins and future expectations - Management expressed optimism about achieving double-digit margins in the renewable segment over time, with a stronger performance expected in the second half of the year [30][32] Question: Cupertino business performance - The Cupertino acquisition is performing at the high end of revenue expectations, with synergies expected to materialize in the coming years [29][32] Question: Organic growth and backlog - Management noted that organic growth in the T&D business is expected to be in the upper single digits going forward, with a strong backlog supporting this growth [34] Question: Labor and supply chain challenges - Management acknowledged ongoing labor and supply chain challenges but emphasized the company's ability to manage these risks effectively [110] Question: Grid hardening demand - Management confirmed an increase in demand for grid hardening services due to recent severe weather events, with multi-year programs being implemented [60][61] Question: MSA renewal process - Management indicated that MSAs are becoming more collaborative, with longer-term contracts being negotiated to ensure resource availability [64] Question: Future large project opportunities - Management expressed confidence in the pipeline of large projects, with substantial demand expected in the coming years [90]

Quanta Services (PWR) reported $6.49 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 15.5%. EPS of $2.72 for the same period compares to $2.24 a year ago.The reported revenue represents a surprise of -0.94% over the Zacks Consensus Estimate of $6.55 billion. With the consensus EPS estimate being $2.66, the EPS surprise was +2.26%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...

Quanta Services (PWR) came out with quarterly earnings of $2.72 per share, beating the Zacks Consensus Estimate of $2.66 per share. This compares to earnings of $2.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.26%. A quarter ago, it was expected that this specialty contractor for utility and energy companies would post earnings of $1.93 per share when it actually produced earnings of $1.90, delivering a surprise of -1.5 ...

[Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) This section details the company's robust Q3 and YTD 2024 financial performance and updated full-year outlook [Third Quarter 2024 Financial Performance](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Performance) Quanta Services achieved record Q3 2024 results, with strong double-digit growth in key metrics and record backlog Q3 2024 vs. Q3 2023 Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $6.49 billion | $5.62 billion | +15.5% | | **Net Income (attributable to common stock)** | $293.2 million | $272.8 million | +7.5% | | **GAAP Diluted EPS** | $1.95 | $1.83 | +6.6% | | **Adjusted Diluted EPS** | $2.72 | $2.24 | +21.4% | | **Adjusted EBITDA** | $682.8 million | $592.5 million | +15.2% | Backlog and Cash Flow Highlights (as of Q3 2024) | Metric | Value | Note | | :--- | :--- | :--- | | **Total Backlog** | $34.0 billion | Record level | | **Remaining Performance Obligations** | $15.6 billion | Record level | | **Year-to-Date Cash Flow From Operations** | $1.37 billion | Record level | | **Year-to-Date Free Cash Flow** | $979.3 million | Record level | [Nine Months 2024 Financial Performance](index=3&type=section&id=Nine%20Months%202024%20Financial%20Performance) For the first nine months of 2024, Quanta demonstrated sustained strong growth across key financial metrics Nine Months Ended Sep 30, 2024 vs. 2023 | Metric | Nine Months 2024 | Nine Months 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $17.12 billion | $15.10 billion | +13.4% | | **Net Income (attributable to common stock)** | $599.7 million | $533.8 million | +12.3% | | **GAAP Diluted EPS** | $4.00 | $3.59 | +11.4% | | **Adjusted Diluted EPS** | $6.03 | $5.12 | +17.8% | [Full-Year 2024 Outlook](index=3&type=section&id=Full-Year%202024%20Outlook) The company raised its full-year 2024 guidance, reflecting confidence in performance despite various uncertainties - Management raised the mid-point of its full-year 2024 **adjusted earnings per share** expectations[1](index=1&type=chunk) Updated Full-Year 2024 Guidance | Metric | Expected Range | | :--- | :--- | | **Revenues** | $23.5 billion - $23.9 billion | | **Net Income (attributable to common stock)** | $853 million - $899 million | | **Diluted EPS (GAAP)** | $5.68 - $5.99 | | **Adjusted Diluted EPS (Non-GAAP)** | $8.50 - $8.80 | | **Adjusted EBITDA (Non-GAAP)** | $2.25 billion - $2.32 billion | | **Free Cash Flow (Non-GAAP)** | $1.30 billion - $1.50 billion | - The financial outlook accounts for uncertainties related to weather, project timing, supply chain challenges, inflation, and interest rates[8](index=8&type=chunk) [Business Operations and Strategy](index=2&type=section&id=Business%20Operations%20and%20Strategy) This section outlines management's strategic direction, recent acquisitions, and initiatives for future growth [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Duke Austin highlighted consistent profitable growth, successful integration, and confidence in future double-digit EPS - The CEO attributes the **double-digit growth** to the power of Quanta's portfolio, sound execution, strong service demand, and an expanding addressable market[2](index=2&type=chunk) - The integration of **Cupertino Electric** is progressing well, with positive customer response to the company's comprehensive electrical infrastructure solutions for the technology and data center industry[3](index=3&type=chunk) - Quanta is positioned at the nexus of the utility, renewable energy, and technology industries, and expects to achieve another year of **double-digit earnings per share growth in 2025**[3](index=3&type=chunk) [Recent Highlights & Strategic Initiatives](index=2&type=section&id=Recent%20Highlights%20%26%20Strategic%20Initiatives) Quanta pursued strategic growth initiatives, including key acquisitions and a strategic investment - In July 2024, Quanta completed the acquisition of **Cupertino Electric (CEI)**, a premier electrical infrastructure solutions provider for technology, renewable, and commercial industries[6](index=6&type=chunk) - In September 2024, the company acquired a New York-based manufacturer of **medium-voltage, liquid-filled power transformers**[4](index=4&type=chunk) - In August 2024, Quanta made a strategic minority investment in **Hybar LLC**, a technologically advanced scrap metal recycling steel rebar mill[5](index=5&type=chunk) - The company published its **2023 Sustainability Report**, titled "Forging the Future," outlining its role in the energy transition and its goal to reduce the carbon intensity of its operations[6](index=6&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents unaudited consolidated statements of operations and balance sheets, detailing financial position [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The income statement reflects strong revenue and operating income growth for Q3 and YTD despite higher costs Q3 Statement of Operations Highlights (in thousands) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Revenues** | $6,493,167 | $5,620,822 | | **Gross Profit** | $1,012,570 | $847,324 | | **Operating Income** | $431,161 | $400,329 | | **Net Income Attributable to Common Stock** | $293,185 | $272,836 | Nine Months Statement of Operations Highlights (in thousands) | Line Item | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | | **Revenues** | $17,119,373 | $15,098,258 | | **Gross Profit** | $2,447,395 | $2,144,618 | | **Operating Income** | $893,745 | $805,462 | | **Net Income Attributable to Common Stock** | $599,704 | $533,781 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects significant asset growth as of Sep 30, 2024, driven by acquisitions and increased liabilities Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $8,046,049 | $7,676,897 | | **Goodwill** | $5,282,170 | $4,045,905 | | **Other Intangible Assets, net** | $1,966,689 | $1,362,412 | | **Total Assets** | $18,866,300 | $16,237,225 | | **Total Current Liabilities** | $6,525,338 | $5,213,116 | | **Long-Term Debt, net** | $4,131,843 | $3,663,504 | | **Total Liabilities** | $11,777,275 | $9,953,870 | | **Total Equity** | $7,089,025 | $6,283,355 | [Segment and Backlog Information](index=10&type=section&id=Segment%20and%20Backlog%20Information) This section details financial performance by segment and analyzes the company's record backlog and RPO [Segment Performance](index=10&type=section&id=Segment%20Performance) Q3 2024 segment performance shows strong Renewable Energy growth, stable Electric Power, and Underground Utility decline Q3 2024 vs. Q3 2023 Segment Revenues (in thousands) | Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | **Electric Power Infrastructure Solutions** | $2,982,032 | $2,489,547 | +19.8% | | **Renewable Energy Infrastructure Solutions** | $2,251,855 | $1,746,636 | +28.9% | | **Underground Utility and Infrastructure Solutions** | $1,259,280 | $1,384,639 | -9.1% | Q3 2024 vs. Q3 2023 Segment Operating Income & Margin (in thousands) | Segment | Q3 2024 Op. Income | Q3 2024 Op. Margin | Q3 2023 Op. Income | Q3 2023 Op. Margin | | :--- | :--- | :--- | :--- | :--- | | **Electric Power Infrastructure Solutions** | $354,505 | 11.9% | $296,176 | 11.9% | | **Renewable Energy Infrastructure Solutions** | $221,509 | 9.8% | $151,389 | 8.7% | | **Underground Utility and Infrastructure Solutions** | $93,956 | 7.5% | $123,764 | 8.9% | [Remaining Performance Obligations and Backlog](index=10&type=section&id=Remaining%20Performance%20Obligations%20and%20Backlog) Total backlog reached a record level as of Sep 30, 2024, driven by key segment growth and increased RPO - Backlog is a non-GAAP measure that includes RPO plus estimated orders under master service agreements (MSAs) and certain non-fixed price contracts, which management uses to forecast future capital needs and operating trends[28](index=28&type=chunk) Total Backlog Comparison (in thousands) | Date | 12-Month Backlog | Total Backlog | | :--- | :--- | :--- | | **Sep 30, 2024** | $19,126,176 | $33,964,290 | | **Dec 31, 2023** | $17,230,947 | $30,108,419 | | **Sep 30, 2023** | $17,018,416 | $30,095,546 | Total Remaining Performance Obligations (RPO) Comparison (in thousands) | Date | 12-Month RPO | Total RPO | | :--- | :--- | :--- | | **Sep 30, 2024** | $10,669,139 | $15,609,530 | | **Dec 31, 2023** | $9,291,994 | $13,894,255 | | **Sep 30, 2023** | $9,549,517 | $13,561,666 | [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-GAAP financial measures to comparable GAAP measures [Reconciliation of Adjusted Net Income and Adjusted Diluted EPS (Historical)](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS%20(Historical)) This section reconciles historical GAAP to non-GAAP earnings, adjusting for non-recurring and non-cash items Q3 2024 Reconciliation of GAAP to Adjusted Diluted EPS | Description | Per Share Amount | | :--- | :--- | | **Diluted EPS (GAAP)** | **$1.95** | | Amortization of intangible assets | $0.73 | | Non-cash stock-based compensation | $0.25 | | Income tax impact of adjustments | ($0.27) | | Other adjustments (Acquisition costs, etc.) | $0.06 | | **Adjusted Diluted EPS (Non-GAAP)** | **$2.72** | [Reconciliation of EBITDA and Adjusted EBITDA (Historical)](index=14&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA%20(Historical)) This section reconciles historical GAAP Net Income to Adjusted EBITDA, adding back interest, taxes, D&A, and other adjustments Q3 2024 Reconciliation to Adjusted EBITDA (in thousands) | Description | Q3 2024 | | :--- | :--- | | **Net Income Attributable to Common Stock (GAAP)** | **$293,185** | | Interest, Taxes, Depreciation & Amortization | $342,599 | | **EBITDA** | **$634,104** | | Non-cash stock-based compensation | $38,234 | | Acquisition and integration costs | $7,053 | | Other adjustments | $3,448 | | **Adjusted EBITDA (Non-GAAP)** | **$682,839** | [Reconciliation of Free Cash Flow (Historical)](index=15&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow%20(Historical)) This section details the reconciliation of historical free cash flow from operating activities less capital expenditures Free Cash Flow Reconciliation (in thousands) | Description | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$739,914** | **$1,369,181** | | Less: Net capital expenditures | (200,444) | (389,863) | | **Free Cash Flow** | **$539,470** | **$979,318** | [Reconciliation of Full-Year 2024 Guidance (Non-GAAP)](index=16&type=section&id=Reconciliation%20of%20Full-Year%202024%20Guidance%20(Non-GAAP)) This section provides a comprehensive reconciliation of the company's full-year 2024 guidance to non-GAAP measures FY 2024 Guidance Reconciliation: GAAP EPS to Adjusted EPS | Description | Low Range | High Range | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$5.68** | **$5.99** | | Amortization of intangible assets | $2.55 | $2.55 | | Non-cash stock-based compensation | $1.02 | $1.02 | | Income tax impact of adjustments | ($0.98) | ($0.99) | | Other adjustments | $0.23 | $0.23 | | **Adjusted Diluted EPS (Non-GAAP)** | **$8.50** | **$8.80** | FY 2024 Guidance Reconciliation: Net Income to Adjusted EBITDA (in thousands) | Description | Low Range | High Range | | :--- | :--- | :--- | | **Net Income (GAAP)** | **$853,100** | **$898,500** | | **EBITDA** | **$2,062,300** | **$2,130,300** | | **Adjusted EBITDA (Non-GAAP)** | **$2,247,900** | **$2,315,900** | FY 2024 Guidance Reconciliation: Free Cash Flow (in thousands) | Description | Low Range | High Range | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$1,775,000** | **$2,000,000** | | **Free Cash Flow** | **$1,300,000** | **$1,500,000** |

Core Insights - Analysts expect Quanta Services (PWR) to report quarterly earnings of $2.66 per share, reflecting an 18.8% year-over-year increase, with revenues projected at $6.55 billion, up 16.6% from the previous year [1] Revenue Projections - Revenue from Electric Power Infrastructure Solutions is estimated at $3.01 billion, indicating a 20.9% increase from the year-ago quarter [4] - Revenue from Renewable Energy Infrastructure Solutions is projected to reach $2.27 billion, representing a 30.2% increase from the prior year [4] - Revenue from Underground Utility and Infrastructure Solutions is expected to be $1.30 billion, showing a decline of 5.8% from the previous year [5] Backlog Estimates - Total backlog is anticipated to be $32.37 billion, up from $30.10 billion reported in the same quarter last year [5] - Backlog for Underground Utility and Infrastructure Solutions is projected at $6.45 billion, down from $6.76 billion year-over-year [6] - Backlog for Electric Power Infrastructure Solutions is expected to reach $18.55 billion, compared to $15.42 billion reported in the same quarter last year [6] Operating Income Forecasts - Operating income for Electric Power Infrastructure Solutions is expected to be $365.07 million, up from $296.18 million year-over-year [7] - Operating income for Underground Utility and Infrastructure Solutions is projected at $107.53 million, down from $123.76 million in the previous year [7] - Operating income for Renewable Energy Infrastructure Solutions is forecasted to be $220.69 million, compared to $151.39 million reported last year [8] Market Performance - Quanta Services shares have increased by 3.9% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 2% [8]