Quanta Services Stock Gains On Beating Q2 Estimates, Raised FY21 Outlook

Quanta Services Inc PWR reported second-quarter revenue growth of 19.7% year-over-year to $3 billion, beating the consensus of $2.98 billion.
Adjusted EPS improved to $1.06 from $0.74 in 2Q20, beating the consensus of $1.04.
Electric Power Infrastructure Solutions revenues were $2.15 billion (+19.8% Y/Y), and Underground Utility and Infrastructure Solutions revenues were $852.04 million (+19.5% Y/Y)
The gross margin expanded by 75 bps to 14.9%, operating income increased by 43.3% Y/Y to $161.65 million, and the margin expanded by 88 bps to 5.4%.
Adjusted EBITDA improved by 31.3% Y/Y to $281.32 million, and margin expanded by 83 bps to 9.4%.
Quanta's backlog at the end of Q2 was $17 billion (+12.2% Y/Y).
It generated a YTD operating cash flow of $314.56 million and Free cash flow of $175.13 million.
Quanta repurchased ~$40.7 million shares in the open market, acquiring approximately 0.4 million shares. As of August 5, 2021, Quanta's current stock repurchase program authorized additional repurchases of up to ~$478.4 million of common stock.
FY21 Outlook: Quanta expects Revenues of $12.20 billion and $12.45 billion (prior $12.05 - $12.35 billion), EPS of $3.40-$3.76 (prior $3.25 - $3.69), and Adjusted EPS of $4.32- $4.68 (prior $4.12 - $4.57).
It expects Adjusted EBITDA of $1.13 billion-$1.21 billion, operating cash flow of $725 million -$925 million, and Free cash flow of $400 million - $600 million.
Price action: PWR shares traded higher by 2.64% at $91.39 on the last check Thursday.

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