Quanta Services (NYSE:PWR) Shares Gap Up Following Strong Earnings

Quanta Services, Inc. (NYSE:PWR)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $561.14, but opened at $647.00. Quanta Services shares last traded at $648.0640, with a volume of 341,865 shares traded.

The construction company reported $4.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.31 by $0.93. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The company had revenue of $9.56 billion for the quarter, compared to analyst estimates of $8.61 billion. During the same quarter last year, the company posted $2.48 EPS. The company’s revenue for the quarter was up 41.1% compared to the same quarter last year. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS.

Quanta Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st were given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date was Wednesday, July 1st. Quanta Services’s payout ratio is currently 6.04%.

Quanta Services declared that its board has initiated a share buyback plan on Friday, May 22nd that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the construction company to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

PWR has been the subject of a number of research reports. Mizuho set a $645.00 target price on shares of Quanta Services in a report on Monday, July 20th. Evercore upped their price objective on shares of Quanta Services from $635.00 to $800.00 and gave the stock an “outperform” rating in a research report on Friday, May 1st. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $714.00 price objective on shares of Quanta Services in a research note on Tuesday, July 21st. CICC Research initiated coverage on shares of Quanta Services in a research note on Thursday, May 21st. They set an “outperform” rating and a $872.00 target price on the stock. Finally, TD Cowen increased their price target on Quanta Services from $570.00 to $775.00 and gave the company a “buy” rating in a research note on Monday, May 4th. Seventeen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $745.55.

Insider Buying and Selling

In other Quanta Services news, CAO Paul Nobel sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $756.98, for a total value of $3,027,920.00. Following the completion of the transaction, the chief accounting officer directly owned 8,080 shares in the company, valued at approximately $6,116,398.40. This represents a 33.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Earl C. Jr. Austin sold 130,000 shares of the firm’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $770.65, for a total transaction of $100,184,500.00. Following the transaction, the chief executive officer directly owned 556,911 shares of the company’s stock, valued at $429,183,462.15. The trade was a 18.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 159,992 shares of company stock valued at $123,244,714. 0.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Boreal Capital Management LLC bought a new stake in shares of Quanta Services in the 1st quarter valued at about $27,000. Cedar Mountain Advisors LLC raised its position in shares of Quanta Services by 321.4% during the fourth quarter. Cedar Mountain Advisors LLC now owns 59 shares of the construction company’s stock worth $25,000 after acquiring an additional 45 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new position in shares of Quanta Services in the fourth quarter worth approximately $28,000. Darwin Wealth Management LLC bought a new stake in Quanta Services in the second quarter valued at approximately $26,000. Finally, MV Capital Management Inc. acquired a new stake in Quanta Services during the 4th quarter valued at approximately $30,000. 90.49% of the stock is owned by institutional investors.

Quanta Services Price Performance

The company has a current ratio of 1.14, a quick ratio of 1.09 and a debt-to-equity ratio of 0.57. The business’s 50-day simple moving average is $682.41 and its two-hundred day simple moving average is $610.16. The firm has a market cap of $97.19 billion, a price-to-earnings ratio of 88.84, a P/E/G ratio of 2.32 and a beta of 1.21.

Quanta Services Company Profile

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.