QUOTE AND NEWS
Forbes  Mar 4  Comment 
The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Quanta Services (PWR) is now the #16 analyst pick, moving up by 1 spot.         This rank is formed by averaging...
SeekingAlpha  Feb 20  Comment 
Quanta Services (PWR) Q4 2013 Earnings Call February 20, 2014 9:30 am ET Executives Kip A. Rupp - Vice President of Investor Relations James F. O'Neil - Chief Executive Officer, President and Director Derrick A. Jensen - Chief...
TheStreet.com  Feb 20  Comment 
NEW YORK (TheStreet) -- Quanta Services  is popping after posting fourth-quarter results which beat expectations on the top- and bottom-line. Management also forecast 2014 earnings and revenue above consensus.  By early afternoon, shares had...
StreetInsider.com  Feb 20  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Quanta+Services%2C+Inc.+%28PWR%29+Tops+Q4+EPS+by+10c%3B+Isses+Strong+Q1%2C+FY14+Outlook/9194206.html for the full story.
Benzinga  Jan 9  Comment 
Quanta Services (NYSE: PWR) today announced that Quanta Power Generation, Inc., a Quanta Services company, was selected by Anchorage Municipal Light & Power for the George M. Sullivan Plant 2 Generation Replacement Project in Anchorage, Alaska....
Benzinga  Jan 3  Comment 
Below are the top general contractors stocks on the NYSE in terms of cash. Chicago Bridge & Iron Company NV (NYSE: CBI) had $542.96 million in total cash and $1.99 billion in total debt for the latest quarter. EMCOR Group (NYSE: EME) had...
Benzinga  Dec 18  Comment 
Quanta Services (NYSE: PWR) today announced that Valard Construction, a Quanta Services company, was selected to install transmission infrastructure in Labrador, Canada, for Nalcor Energy's Muskrat Falls Project. Under the terms of the contract,...
Benzinga  Dec 10  Comment 
In a report published Tuesday, Goldman Sachs analyst Brian Lee resumed coverage on Quanta Services (NYSE: PWR) with a Neutral rating and $29.00 price target. In the report, Goldman Sachs noted, “We resume coverage of Quanta Services with a...
Benzinga  Dec 9  Comment 
Quanta Services (NYSE: PWR) today announced that its wholly owned subsidiary, Quanta Capital Solutions, Inc. (Quanta Capital), has successfully closed the sale of all of its equity ownership interest in Howard Midstream Energy Partners, LLC...
Benzinga  Dec 6  Comment 
Quanta Services (NYSE: PWR) today announced that its board of directors has authorized the repurchase of up to $500 million of Quanta's common stock over the next three years. Under the stock repurchase program, the company is authorized to...




 

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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