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Quanta Services Slashes FY20 Outlook Amid COVID-19 - Quick Facts

While reporting financial results for the first quarter on Thursday, Quanta Services, Inc. (PWR) slashed its earnings and revenue guidance for the full-year 2020, reflecting the estimated impact of COVID-19 and other factors on operations.

For fiscal 2020, the company now projects earnings in a range of $2.25 to $2.57 per share and adjusted earnings in a range of $3.04 to $3.36 per share on revenues between $11.4 billion and $11.8 billion.

Previously, the company expected earnings in a range of $2.93 to $3.33 per share and adjusted earnings in a range of $3.62 to $4.02 per share on revenues between $12.2 billion and $12.6 billion.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $3.58 per share on revenues of $12.26 billion for the year. Analysts' estimates typically exclude special items.

The company said it expects its second quarter results to be meaningfully impacted, and have reduced its expectations for the second half of the year.

It added that the ultimate impact of the COVID-19 pandemic on Quanta's operational and financial performance will depend on future developments, including the duration and severity of the pandemic and actions taken by domestic and international governments in response to the pandemic, all of which are uncertain and cannot be predicted.

However, its long-term outlook for Quanta's business is positive. The company added that 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.

The company also declared a dividend of $0.05 per share during the first quarter of 2020 and expects to continue paying quarterly dividends, subject to approval by Quanta's board of directors.

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