Quanta Services (NYSE: PWR) reported Q2 EPS of $0.74, $0.26 better than the analyst estimate of $0.48. Revenue for the quarter came in at $2.51 billion versus the consensus estimate of $2.51 billion.

"Quanta produced a solid second quarter, which exceeded our expectations, despite the unprecedented health and economic conditions that are challenging us all. We believe our results and improved outlook for the year demonstrate the resiliency of our business, the strengths of our strategies and the operational excellence of our people," said Duke Austin, President and Chief Executive Officer of Quanta Services. "We ended the quarter with a strong balance sheet and liquidity position, and our competitive position in the marketplace and ability to serve the expanding needs of our customers have never been better. We believe Quanta has a bright future ahead for generating repeatable and sustainable earnings as we continue to execute on our strategic initiatives."

"During the second quarter we announced that LUMA Energy, LLC, a joint venture 50% owned by Quanta, was selected for a 15-year agreement to operate, modernize and maintain Puerto Rico's electric transmission and distribution system. We believe this opportunity is transformative for the company and supports our ongoing strategy of providing sophisticated and valuable solutions to the utility industry. We believe LUMA's selection also demonstrates Quanta's world-class capabilities and expertise in modernizing infrastructure and enabling technologies for the benefit of consumers that Quanta brings to the joint venture."

GUIDANCE:

Quanta Services sees FY2020 EPS of $3.18-$3.48, versus the consensus of $3.17. Quanta Services sees FY2020 revenue of $11-11.4 billion, versus the consensus of $11.59 billion.

The long-term outlook for Quanta's business is positive. However, weather, regulatory, permitting, project timing, execution challenges and other factors have impacted the company's historical results, and may impact Quanta's future financial results. More recently, the COVID-19 pandemic has significantly impacted certain of Quanta's operations and various markets where Quanta operates, which has created additional uncertainty. Therefore, Quanta's financial outlook for revenues, margins and earnings reflects management's effort to align these uncertainties with the backlog the company is executing on and the opportunities expected to materialize during the remainder of 2020.

Prior to the company's conference call, management will post a summary of updated 2020 guidance expectations with additional commentary in the "Financial Info" area of the Investor Relations section of Quanta's website at http://investors.quantaservices.com.

The following forward-looking statements are based on current expectations, and actual results may differ materially. Quanta expects revenues to range between $11.0 billion and $11.4 billion, net income attributable to common stock to range between $338 million and $382 million, diluted earnings per share attributable to common stock to range between $2.33 and $2.64 and adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.18 and $3.48. EBITDA (a non-GAAP measure) is expected to range between $819 million and $881 million and adjusted EBITDA (a non-GAAP measure) is expected to range between $903 million and $964 million. Additionally, Quanta is increasing its full year free cash flow (a non-GAAP measure) expectations to between $600 million and $800 million.

Quanta's outlook for 2020 includes the expected results of its LATAM operations. As referenced above and discussed previously, the company has completed a strategic review and has concluded it will pursue the orderly exit of these operations. The company is considering various options to that end and, absent further delays caused by the COVID-19 pandemic, believes a significant portion of the process could be achieved in 2020. Quanta believes this course of action will result in improved profitability and optimization of the company's operational portfolio. In 2020, Quanta's LATAM operations are expected to generate revenues of $20 million to $30 million, an operating loss of $40 million to $45 million and diluted loss per share of $0.28 to $0.31.

For earnings history and earnings-related data on Quanta Services (PWR) click here.