Energy infrastructure solutions provider Quanta Services, Inc. (PWR) Wednesday reported an increase in profit for the third quarter, benefiting from income tax related gains. On an adjusted basis, earnings declined from a year ago on lower revenues, as the sluggish economy continues to negatively impact industries the company serves.
Net income attributable to common stock for the quarter increased to $63.44 million or $0.32 per share from $51.94 million or $0.28 per share in the prior-year quarter.
Third quarter results included a $22.4 million gain, or a benefit of $0.11 per share, from the release of income tax contingencies due to the expiration of various statutes of limitations related to federal and state tax returns. Excluding items, net income was $50.32 million or $0.25 per share, lower than $66.07 million or $0.32 per share in the previous year.
On an average, 16 analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenues plunged to $780.79 million from $1.05 billion last year. Analysts expected the company to report revenues of $857.82 million for the quarter.
John Colson, the chairman and chief executive of Quanta, said, "However, our gross margins improved 130 basis points over the third quarter of 2008, a quarter during which we achieved $110 million more in higher margin emergency restoration service revenues. This gross margin improvement reflects our successful strategy of not pursuing lower margin work for the sake of revenues."
Provision for income taxes for the quarter was $5.32 million, much lower than $36.61 million in the comparable period. Interest expenses declined to $2.82 million from $9.84 million a year ago.
In the preceding second quarter, Quanta has reported lower profit and revenues. Net income attributable to common stock was $33.43 million or $0.17 per share, compared to $37.67 million or $0.21 per share in the year earlier period, on revenues of $813.38 million, lower than $960.88 million.
For the first nine-months, Quanta reported net income attributable to common stock of $118.2 million or $0.59 per share, higher than $111.1 million or $0.63 per share in the same period last year. On an adjusted basis, earnings declined to $120.26 million or $0.59 per share from $154.97 million or $0.76 per share in the prior year. Year-to-date, revenues declined to $2.33 billion from $2.86 billion a year ago.
Among peers, construction and facilities services provider Emcor Group, Inc. (EME) on October 29 reported lower profit for the third quarter, reflecting a sharp decrease in revenues. Emcor posted net income of $39.98 million or $0.59 per share, compared to $48.64 million or $0.72 per share in the previous year. Revenues were $1.37 billion, lower than $1.72 billion generated in the prior year.
Another competitor, MYR Group Inc. (MYRG) is scheduled to release third-quarter results on November 9. On an average, 11 analysts currently estimates earnings of $0.26 per share, on revenues of $172.89 million for the quarter.
Looking ahead, for the fourth quarter, Quanta expects earnings in a range of $0.16 to $0.17 per share. On an adjusted basis, earnings are expected to be in the range of $0.26 to $0.27 per share. Amortization of intangibles, non-cash interest expense and non-cash stock compensation expenses are forecasted to be about $34 million for the fourth quarter.
Revenues for the quarter are expected to range between $900 million and $950 million, including emergency restoration service revenues of $11 million versus approximately $47 million earned in the fourth quarter of 2008.
Revenue estimate also includes an estimate of the results of Price Gregory Services, Inc. for the full quarter. Quanta completed the acquisition of Price Gregory on Oct. 1, 2009 through a merger transaction. Price Gregory provides gas and oil transmission pipeline infrastructure services in North America.
Analysts currently expect earnings of $0.21 per share on revenues of $907.53 million for the fourth quarter.
"We believe the most significant effects of the recession are behind us. While the first quarter of 2010 may be challenging, we expect a meaningful recovery in the second half of next year as spending by our customers returns," Colson concluded.
PWR closed Tuesday's regular trading at $21.66 per share on the New York Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.