QUOTE AND NEWS
newratings.com  Aug 21  Comment 
WASHINGTON (dpa-AFX) - Quanta Services, Inc. (PWR) Thursday announced that PAR Electrical Contractors, Inc., a Quanta Services company, was selected by Southern California Edison for the 500-kilovolt underground project for the Chino Hills segment...
Market Intelligence Center  Aug 14  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Quanta Services Inc. (PWR) that includes 6.17% downside protection. Sell one contract of the...
Forbes  Aug 11  Comment 
In afternoon trading on Monday, Industrial stocks are the best performing sector, up 0.7%. Within that group, Quanta Services (NYSE: PWR) and Priceline Group (NASD: PCLN) are two large stocks leading the way, showing a gain of 3.4% and 2.8%,...
TheStreet.com  Aug 11  Comment 
NEW YORK (TheStreet) -- Shares of Quanta Services Inc. are up 3.46% to $34.94 after the specialty contracting services company announced that Valard Construction, a Quanta Services company, was selected by Labrador-Island Link Partnership, a...
Market Intelligence Center  Aug 7  Comment 
For a hedged play on Quanta Services Inc. (PWR), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Nov. '14 $33.00 covered call for a net debit in the $31.64 area. That is also the break-even stock price for the...
SeekingAlpha  Aug 2  Comment 
By Tin Nguyen: Thursday was an ugly day for equities to say the least and in the midst of a market wide sell-off, Quanta Services (NYSE:PWR) was taken along for ride. During a mass exodus, nobody cares about record revenues and earnings. Hence, it...
Benzinga  Aug 1  Comment 
In a report published Friday, Baird Equity Research analyst Andrew J. Wittmann upgraded the rating on Quanta Services (NYSE: PWR) from Neutral to Outperform, but lowered the price target from $41.00 to $40.00. In the report, Baird Equity...
newratings.com  Jul 31  Comment 
WASHINGTON (dpa-AFX) - Quanta Services Inc. (PWR) said that its net income attributable to common stock for the second quarter of 2014 was $81.1 million, or $0.37 per share, up from $70.2 million, or $0.33 per share, in the second quarter of...
Forbes  Jul 30  Comment 
Wall Street is expecting higher profit for Quanta Services when the company reports its second quarter results on Thursday, July 31, 2014. The consensus estimate is calling for profit of 39 cents a share, a rise from 35 cents per share a year...
SeekingAlpha  Jul 15  Comment 
By Tin Nguyen: For the last six months, I have been patiently waiting for an entry into Quanta Services (NYSE:PWR). Often overlooked, this $7.6 bil. market cap. industry leader operates three booming business segments: Electric Power...




 

Quanta Services (PWR) installs and repairs infrastructure for the natural gas, electric, telecommunications, and cable industries. Its primary business is installing power lines and power distribution networks for companies that provide power, like gas and electric utilities.

The aging U.S. and Canadian power grid consisting of more than 200,000 miles of high-voltage lines now requires significant maintenance and expansion to handle the nation’s growing power needs. North American Electric Reliability Council (NERC) industry professionals currently recommend a complete electric infrastructural overhaul by 2014.[1] In addition, in conjunction with the 20% US Population growth since 1990, energy consumption has increased by a comparable 18%. [2] Increasing demand for electricity has resulted in increased spending on transmission and distribution systems. Quanta has been and continues to be a significant beneficiary of this global energy need.

Company Overview

Business Segments[3]

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2007 Revenue By Segment[4][5]

Quanta Services operates in four segments: electric power, telecommunications, natural gas, and ancillary services.[6]

Business & Financial Metrics[12]

In 2009, PWR generated a net income of $162.2 million on $3.32 billion in total revenues. This represents a 2.9% increase in net income on a 12.2% decrease in revenues from 2008, when the company earned $157.6 million on revenues of $3.78 billion.

Trends and Forces

Aging U.S. and Canadian Infrastructure Will Need Renovation

The U.S. and Canadian electric power grid consists of more than 200,000 miles of high-voltage lines delivering electricity to over 300 million people.[13] The infrastructure is aging and requires significant maintenance and expansion to handle the nation's growing power needs. North American Electric Reliability Council (NERC) industry professionals estimate a complete electric infrastructural overhaul in the next 5-10 years in order to respond to the wavering reliability of the transmission system. In addition, NERC issued a report forecasting a 135,000 peak-megawatt consumption (ie consumption during summer) by 2017, a 17.7% increase over the next ten years. [14]. Lastly, the failure rate for an electricity transformer rises sharply 30 years after installation; the US' last major investment in transformers occurred in 1974, to accommodate a peak of 185 giga-voltage amperes. As a result, power companies throughout the United States are beginning to replace aging transformer units, which benefits PWR's Electric Works division.[15]5

Demand Spike In Energy as Result of 20% Domestic Population Growth

The U.S. population has increased by about 20% since 1990, with energy consumption increasing by a comparable 18%.[16]In addition, The EIA projects that U.S. electricity sales from producers to consumers will increase to 5168 billion kilowatt-hours in 2030.[17] Increasing demand for electricity has resulted in increased spending on transmission and distribution systems, as shown by increased investment spending by investor-owned utilities; as these utilities renovate their infrastructure to meet demand, specialized infrastructure companies such as Quanta reap the benefits.

Competition

Quanta Services competes with other specialized construction firms to acquire contracts from electric, telecommunications, and natural gas service providers. Some of its competitors include:

  • Emcor Group (EME) specializes in lighting systems, data communication systems, ventilation systems, fire protection systems, and water treatment systems.[18]
  • Integrated Electrical Services (IESC) is a U.S. provider of electrical contract services. IESC serves commercial, industrial, and residential markets.[19]
  • Mastec. Corp specializes in the installation and maintenance of communications and utility infrastructure in the United States.[20]
  • URS Corp., unlike Quanta, does most of its business through contracts with the U.S. federal government.[21]

References

  1. PWR 2007 10-K, Item 1: Business, page 4
  2. PWR 2007 10-K, Item 1: Business, page 4
  3. PWR 2009 10-K pg. 2  
  4. PWR 2007 10-K, Item 1: Business, page 3
  5. PWR Google Finance July 4, 2008
  6. PWR 2007 10-K, Item 1: Business, page 3
  7. PWR 2007 10-K, Item 1: Business, page 6
  8. PWR 2007 10-K, Item 1: Business, page 6
  9. PWR 2007 10-K, Item 1: Business, page 3
  10. PWR 2007 10-K, Item 1: Business, page 6
  11. PWR 2007 10-K, Item 1: Business, page 6
  12. PWR 2009 10-K pg. 31  
  13. PWR 2007 10-K, Item 1: Business, page 4
  14. PWR 2007 10-K, Item 1: Business, page 4
  15. SPX Annual Guidance Meeting 2008 pages 35-37, Source: Hartford Steam Boiler
  16. PWR 2007 10-K, Item 1: Business (Industry Overview), page 4
  17. PWR 2007 10-K, Item 1: Business (Industry Overview), page 4
  18. EME Google Finance, July 4,2008
  19. IESC Google Finance, July 4,2008
  20. MTZ Google Finance, July 4,2008
  21. URS Google Finance, July 4,2008
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