Quanta Services 3Q profit up on tax benefit

posted: 20 DAYS 8 HOURS AGO

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HOUSTON -Electric utility contractor Quanta Services Inc. said Wednesday its third-quarter profit jumped as a tax benefit more than offset a decline in revenue due to the recession.

Net income of $63.4 million, or 32 cents per share, was up 22 percent from $51.9 million, or 28 cents per share, in the same quarter last year.

Excluding tax benefits related to the expiration of tax statutes of limitations Quanta said it earned $50.3 million, or 25 cents per share.

Analysts expected earnings of 21 cents per share, according to a survey by Thomson Reuters.

Revenue for the three months ended Sept. 30 was $780.8 million, down 26 percent from $1.05 billion in the third quarter of 2008. Analysts expected revenue of $857.8 million.

"The slow economy continues to negatively affect the industries we serve and our revenues," said John R. Colson, chairman and CEO of the Houston company.

However, he said he believes the most significant impact of the recession has passed.

"While the first quarter of 2010 may be challenging, we expect a meaningful recovery in the second half of next year as spending by our customers returns," he said.

Quanta said it expects earnings for the fourth quarter between 16 cents per share and 17 cents on revenue of $900 million to $950 million.

Analysts expect the company to earn 21 cents per share on revenue of $907.5 million.

Shares slipped 2 cents to $21.64 in afternoon trading.

2009-11-04 15:08:15