Quanta Services, Inc. (PWR) has experienced a remarkable 21.7% rise in its stock year to date (YTD), surpassing the growth of the Zacks Engineering – R and D Services industry. The company’s success can be attributed to its ability to meet the persistent demand in its target markets and deliver outstanding performance in its fundamental operations. Quanta has effectively leveraged major trends to spearhead the transition towards sustainable energy solutions and facilitate technological advancements.
The year 2023 promises abundant growth opportunities for infrastructure solutions, paving the way for Quanta’s continued success. With a solid backlog of $27.2 billion and a 12-month backlog of $15.64 billion as of the second quarter, the company displays resilience and strength in its core operations. Quanta’s positive outlook is further supported by its expectation of delivering a compound annual growth rate of more than 15% in adjusted earnings per share through 2026.
Quanta is actively engaged in decarbonization efforts by contributing to a range of technological solutions focused on advancing carbon-neutral energy initiatives. From carbon management and mitigation to compliance consulting, the company covers all aspects of infrastructure necessary to support sustainable energy solutions. Noteworthy initiatives such as expanding electric vehicle charging infrastructure and undergrounding electrical infrastructure contribute significantly to Quanta’s growth prospects.
In line with its growth strategy, Quanta recognizes the importance of acquisitions to expand its market presence and increase its order backlog. Recently, the company completed three acquisitions. These acquisitions enhance Quanta’s expertise in high-voltage transmission lines, overhead and underground distribution, emergency restoration, and industrial and commercial wiring and lighting. Furthermore, the acquisitions strengthen Quanta’s capabilities in concrete construction services and solar tracking equipment installation.
Although project delays, supply chain risks, and oil and gas volatility pose challenges, Quanta Services remains well-positioned to capitalize on market opportunities. Analysts have raised their estimates for the company, with the Zacks Consensus Estimate projecting 11.7% year-over-year growth in earnings per share for 2023.
FAQs
Q: What has contributed to Quanta Services’ stock rise?
A: Quanta Services’ stock has risen 21.7% YTD due to enduring demand in its target markets and the strong performance of its fundamental operations.
Q: How does Quanta Services leverage megatrends?
A: Quanta Services effectively leverages megatrends to drive the transition towards sustainable energy solutions and facilitate technological advancements.
Q: What is Quanta Services’ backlog?
A: Quanta Services ended the second quarter with a total record backlog of $27.2 billion and a 12-month backlog of $15.64 billion, indicating the resilience of its fundamental operations.
Q: How does Quanta Services contribute to decarbonization?
A: Quanta Services engages in diverse technological solutions to advance decarbonization initiatives, covering carbon management, compliance consulting, and infrastructure for carbon-neutral energy solutions.
Q: Why are acquisitions important for Quanta Services?
A: Acquisitions play a crucial role in Quanta Services’ strategy to expand its market presence and increase its order backlog, strengthening its capabilities in various sectors.
Source: Zacks