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Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Quanta (NYSE:PWR) and its peers.
Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.
The 4 energy products and services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.
Luckily, energy products and services stocks have performed well with share prices up 10.4% on average since the latest earnings results.
Quanta (NYSE:PWR)
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Quanta reported revenues of $6.23 billion, up 23.9% year on year. This print exceeded analysts’ expectations by 6.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
"Quanta is pleased to report strong first quarter results, including robust double-digit growth in revenue, adjusted EBITDA and adjusted earnings per share, along with record backlog of $35.3 billion," said Duke Austin, President and Chief Executive Officer of Quanta Services.
Quanta pulled off the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 9.8% since reporting and currently trades at $321.
We think Quanta is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q1: Ameresco (NYSE:AMRC)
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors.
Ameresco reported revenues of $352.8 million, up 18.2% year on year, outperforming analysts’ expectations by 14.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Ameresco delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 22.8% since reporting. It currently trades at $14.21.