Quanta Services, Inc. (PWR) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $87.58 million, or $ 0.57 a share in the quarter, against a net loss of $5.07 million, or $0.03 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $86.61 million, or $0.56 a share compared with $49.36 million or $0.30 a share, a year ago.
Revenue during the quarter grew 10.72 percent to $2,102.97 million from $1,899.27 million in the previous year period. Gross margin for the quarter expanded 289 basis points over the previous year period to 14.63 percent. Total expenses were 94.39 percent of quarterly revenues, down from 99.81 percent for the same period last year. This has led to an improvement of 541 basis points in operating margin to 5.61 percent.
Operating income for the quarter was $117.89 million, compared with $3.62 million in the previous year period.
"We are pleased with the revenue and profitability momentum we experienced in the second half of 2016, as evidenced by our record revenues in the fourth quarter. We anticipate that this momentum will continue into 2017 and believe we are well positioned for profitable growth," said Duke Austin, president and chief executive officer of Quanta Services. "We see multi-year growth opportunities for both electric power and oil and gas infrastructure services, and we remain focused on our strategic objectives of returning profitability to historical levels, safely providing infrastructure solutions to our customers and running the business for the long-term."
For financial year 2017, Quanta Services, Inc. projects revenue to be in the range of $7,900 million to $8,500 million. The company forecasts diluted earnings per share to be in the range of $1.52 to $1.77. The company forecasts diluted earnings per share to be in the range of $1.80 to $2.05 on adjusted basis.
Working capital remains almost stable
Quanta Services, Inc. has recorded an increase in the working capital over the last year. It stood at $1,083.52 million as at Dec. 31, 2016, up 0.91 percent or $9.74 million from $1,073.77 million on Dec. 31, 2015. Current ratio was at 1.90 as on Dec. 31, 2016, up from 1.89 on Dec. 31, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding was almost stable at 2 days for the quarter, when compared with the last year period.
Debt comes down significantly
Quanta Services, Inc. has recorded a decline in total debt over the last one year. It stood at $361.12 million as on Dec. 31, 2016, down 25.14 percent or $121.31 million from $482.43 million on Dec. 31, 2015. Total debt was 6.74 percent of total assets as on Dec. 31, 2016, compared with 9.25 percent on Dec. 31, 2015. Debt to equity ratio was at 0.11 as on Dec. 31, 2016, down from 0.16 as on Dec. 31, 2015. Interest coverage ratio improved to 29.55 for the quarter from 1.24 for the same period last year.
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