Quanta Services (NYSE: PWR) reported Q3 EPS of $1.40, $0.31 better than the analyst estimate of $1.09. Revenue for the quarter came in at $3.02 billion versus the consensus estimate of $3.01 billion.

• Third Quarter Consolidated Revenues of $3.0 Billion
• Record Quarterly GAAP Diluted EPS from Cont. Operations of $1.13 and Record
• Adjusted Diluted EPS of $1.40
• Third Quarter Cash Flow from Operating Activities of $114.9 million
• Remaining Performance Obligations of $4.4 Billion and Record Total Backlog of $15.1 Billion
• Raising 2020 Net Income, EBITDA and Earnings Per Share Expectations

"Quanta's third quarter results exceeded our expectations, driven by strong margins from both our Electric Power Infrastructure and Pipeline and Industrial Infrastructure Services segments. Electric Power Infrastructure Services segment revenue was a quarterly record, produced by solid and safe execution, high utilization and record levels of emergency response activity," said Duke Austin, President and Chief Executive Officer of Quanta Services. "Due to our strong third quarter results, healthy end market drivers and the addition of recent acquisitions, we are increasing our full-year 2020 net income, EBITDA and earnings per share expectations.

"We believe Quanta has executed well this year despite challenges from the global pandemic due to the resiliency of our business, the strengths of our strategies and the operational excellence of our people. We continue to believe there is opportunity to drive multi-year revenue and earnings growth by focusing on our base business, supporting the long-term programmatic spend of utilities and participating in the development of infrastructure that supports renewables and technology deployments such as 5G and electric vehicles. We believe these dynamics, along with the contribution of earnings from our investment in LUMA Energy in Puerto Rico and our continued opportunistic deployment of capital, support our expectations for profitable growth in 2021 and beyond.

"Lastly, during the third quarter Quanta issued $1.0 billion of 2.9% senior notes due 2030, expanded the capacity and extended the term of our credit facility and received an investment grade corporate credit rating. We are proud of these achievements, which we believe points to our strong financial profile, the resiliency and sustainability of our business model and a positive multi-year outlook."

GUIDANCE:

Quanta Services sees FY2020 EPS of $3.52-$3.64, versus the consensus of $3.35. Quanta Services sees FY2020 revenue of $11.1-11.3 billion, versus the consensus of $11.22 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 $11.1 billion and $11.3 billion, net income attributable to common stock to range between $378 million and $395 million, diluted earnings per share attributable to common stock to range between $2.61 and $2.72 and adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to range between $3.52 and $3.64. EBITDA (a non-GAAP measure) is expected to range between $894 million and $918 million and adjusted EBITDA (a non-GAAP measure) is expected to range between $986 million and $1.01 billion. Additionally, Quanta's full year free cash flow (a non-GAAP measure) expectations are 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 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 should be achieved in 2020. Quanta believes this course of action will result in improved profitability and optimization of its operational portfolio. In 2020, Quanta's LATAM operations are expected to generate revenues of $10 million to $15 million, an operating loss of $55 million to $60 million and diluted loss per share of $0.38 to $0.41.

Please see the accompanying tables for reconciliations of estimated adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) to estimated diluted earnings per share attributable to common stock for full-year 2020, estimated EBITDA (a non-GAAP measure) and estimated adjusted EBITDA (a non-GAAP measure) to estimated net income attributable to common stock for full-year 2020 and estimated free cash flow (a non-GAAP measure) to estimated net cash provided by operating activities for full-year 2020.

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