Single-day increase surpassing Microsoft! This stock has accumulated a rise of over 25% in the past 12 months
U.S. energy infrastructure service provider Quanta Services saw its stock price rise 9.3% on Thursday, becoming the best-performing stock in the S&P 500 index, closing at $319.82. Although the increase since the beginning of the year is only 1.2%, it has risen more than 25% over the past 12 months. The company's first-quarter financial report exceeded market expectations, with revenue reaching $6.2 billion and adjusted earnings per share of $1.78. Despite facing macroeconomic uncertainties, Quanta Services raised its full-year performance forecast, expecting net revenue to be between $26.7 billion and $27.2 billion
According to Zhitong Finance APP, American energy infrastructure service provider Quanta Services (PWR.US) surged on Thursday, becoming one of the best-performing stocks in the S&P 500 index, with a single-day increase of 9.3%, closing at $319.82. Similarly, Microsoft (MSFT.US), which also rose after its earnings report was released, saw an increase of 7.63% today. Although Quanta Services has only risen 1.2% since the beginning of the year, the stock has accumulated an increase of over 25% in the past 12 months.
This significant rise was mainly driven by the company's first-quarter earnings report exceeding market expectations and an upward revision of its full-year performance guidance. With the continuous rise in electricity demand in the United States, this Houston-based energy contractor is also experiencing stronger growth momentum.
Earnings Report Exceeds Expectations with Positive Revenue and Profit
According to the earnings report released by Quanta on Thursday, the company achieved revenue of $6.2 billion in the first quarter, far exceeding analysts' expectations of $5.9 billion; the adjusted diluted earnings per share were $1.78, also higher than Wall Street's expectation of $1.67.
Quanta's business is mainly divided into two segments: the power segment serves clients in renewable energy, technology, and telecommunications; the underground and infrastructure segment focuses on the oil and gas industry.
Despite the strong performance of the earnings report, Quanta also pointed out that due to the tariff policies implemented by President Trump and tense foreign trade relations, there is uncertainty in the macroeconomic outlook, and the company is concerned that this may trigger recession risks.
However, the company emphasized that most contract terms limit its direct exposure to costs arising from tariff increases, but the supply chain costs and operational pressures faced by clients themselves may affect the progress of subsequent projects.
To address potential risks, Quanta stated that it has taken measures to optimize its supply chain, including "strategic early procurement" and seeking new suppliers to reduce costs and ensure material supply.
Upgraded Full-Year Guidance with Optimistic Future Outlook
Despite facing macro challenges, Quanta's management remains cautiously optimistic and has raised its full-year performance expectations in this earnings report.
The company expects that net revenue for the fiscal year 2025 will be between $26.7 billion and $27.2 billion, with adjusted earnings per share expected to be between $10.05 and $10.65, all higher than previous expectations.
In the earnings call, Chairman and CEO Duke Austin mentioned that the company achieved "strong double-digit growth" in earnings before interest, taxes, depreciation, and amortization (EBITDA), and revealed that it currently holds a record $35.3 billion in uncompleted orders, laying a solid foundation for future growth.
CFO Jayshree Desai added that the rating agency S&P Global has upgraded both Quanta's long-term and short-term issuer credit ratings this quarter. Desai stated, "We believe that these credit rating upgrades will help the company reduce financing costs, broaden financing channels, enhance financial resilience, and further support our long-term growth strategy."
