slashed its second-quarter and full-year guidance Monday on economic weakness and deteriorating market conditions.
The power, gas and telecommunications company warned that its second-quarter earnings would be about 3 cents to 5 cents a share, well below the consensus estimate provided by Thomson Financial/First Call of EPS of about 19 cents. For the full year, Quanta sees earnings of 45 cents to 55 cents a share, down from the consensus of 94 cents.
In a press release, the company said, "We experienced weakness in each of the markets we served during the quarter." Quanta added that it saw contract delays, cancellations, and reduced margins in its cable and telecom business, while electric and gas utility makets were off on credit rating issues and financial problems.
Quanta noted that its two largest customers in the first quarter filed for bankruptcy and suspended all work, impacting the company's results.
"While we expect the downturn in these markets to be temporary, it is currently impacting our financial performance," the company said.
Shares of Quanta closed Monday at $9.14 before the warning.