Thursday, August 5, 2010

Transmission: Quanta Services Meets; Cuts Outlook... (PWR)

And as the old nature shows used to say as the lions approached the Wildebeest:
"Sadly now, there can be but one outcome."
The stock was down 5.36% yesterday and another 3/4% afterhours to $20.15.
This is another one of the infrastructure companies that, if the politicians had been telling the truth about the stimulus money, would have been one to bet on.*
From Zacks Analyst blog:
Quanta Services Inc. (PWR - Analyst Report) reported 2010 second quarter earnings from continuing operations of 18 cents per share, matching the Zacks Consensus Estimate. Revenues for the quarter came in at $870.5 million, below the Zacks Consensus revenue estimate of $936 million.

Quanta completed the acquisition of Price Gregory Services Inc. on Oct 1, 2009. Therefore, these reported results of operations include the results of Price Gregory.

During the second quarter, the company had a loss on extinguishment of debt of approximately two cents per share in connection with the redemption or conversion of all outstanding 3.75% convertible subordinated notes due 2026.

Quanta and its customers continue to operate in a challenging business environment in light of the economic downturn and tentative capital markets. Therefore, management is unable to predict the timing or extent of the impact that these conditions may have on demand for Quanta's services, particularly in the near term. Projections for 2010 have been negatively impacted by project delays and rescheduling that is directly caused by the need for increased regulatory compliances.

Quanta expects revenues for the third quarter of 2010 to range between $1.15 billion and $1.25 billion. Diluted earnings per share for the third quarter of 2010 are expected between 34 cents and 36 cents....MORE
At Reuters:
UPDATE 2-Quanta Services cuts 2010 outlook; shares fall

AP via BusinessWeek:
Quanta Services lowers 3Q, full-year outlook

*Yesterday at CI:
Transmission: "General Cable Has a Line on Growth" (BGC)