NEW YORK (TheStreet) -- Quanta Services (PWR - Get Report) is popping after posting fourth-quarter results which beat expectations on the top- and bottom-line. Management also forecast 2014 earnings and revenue above consensus.
By early afternoon, shares had added 6.3% to $34.13.
In the three months to December, the construction services contractor recorded net income of 50 cents a share, 10 cents higher than analysts surveyed by Thomson Reuters had expected. Revenue of $1.82 billion was 9% higher than a year earlier and beat expectations by $112 million.
"Our customer relationships are expanding as capital programs become larger and more complex, requiring Quanta's growing geographic presence and comprehensive service offerings," said CEO Jim O'Neill in a statement."We believe these factors, coupled with our record backlog, will provide the opportunity for double-digit growth for at least the next two years." For the current quarter ending March, management forecasts revenue between $1.65 billion and $1.75 billion, in-line with consensus of $1.68 billion. Projected per-share earnings of 41 cents to 43 cents came in higher than analyst expectations of 36 cents a share. Over fiscal 2014, the Houston-based company anticipates revenues between $7.4 billion and $7.8 billion with net income of $1.85 to $2.05 a share. Analysts had forecast revenue of $7.1 billion and net income of $1.77 a share. Also see: Minimum Wage Hike Could Derail Young Workers Also see: Google Fiber a Godsend for Comcast TheStreet Ratings team rates QUANTA SERVICES INC as a Buy with a ratings score of A. The team has this to say about their recommendation: "We rate QUANTA SERVICES INC (PWR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: PWR Ratings Report