NEW YORK (TheStreet) -- Shares of Quanta Services (PWR) - Get Report are down by 10.13% to $23.55 in pre-market trading on Friday morning, after the specialty contracting services company announced its preliminary third quarter financial results and warned that profit will come in below its previous forecast.

Quanta Services believes that revenue for the period will come in slightly below the midpoint range of its $1.9 billion to $2 billion expectations.

Diluted earnings per share from continuing operations is anticipated to be between 22 cents and 24 cents per share. Previously, the company had forecast earnings between 34 cents and 40 cents per share.

"While we are disappointed in our performance, we consider 2015 to be a transition year and are committed to achieving segment operating margins consistent with our previous expectations," company CEO Jim O'Neil said in a statement.

Quanta's actual third quarter 2015 results and an update to its full year financial guidance will be provided before the market open on November 5, 2015.

Separately, TheStreet Ratings team rates QUANTA SERVICES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate QUANTA SERVICES INC (PWR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PWR's revenue growth has slightly outpaced the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • PWR's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Construction & Engineering industry and the overall market, QUANTA SERVICES INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for QUANTA SERVICES INC is currently extremely low, coming in at 14.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.46% trails that of the industry average.
  • You can view the full analysis from the report here: PWR