Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Quanta (NYSE:PWR) and its peers.
Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.
The 4 energy products and services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.
Luckily, energy products and services stocks have performed well with share prices up 10.4% on average since the latest earnings results.
Quanta (NYSE:PWR)
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Quanta reported revenues of $6.23 billion, up 23.9% year on year. This print exceeded analysts’ expectations by 6.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
"Quanta is pleased to report strong first quarter results, including robust double-digit growth in revenue, adjusted EBITDA and adjusted earnings per share, along with record backlog of $35.3 billion," said Duke Austin, President and Chief Executive Officer of Quanta Services.
Quanta pulled off the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 9.8% since reporting and currently trades at $321.
We think Quanta is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q1: Ameresco (NYSE:AMRC)
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors.
Ameresco reported revenues of $352.8 million, up 18.2% year on year, outperforming analysts’ expectations by 14.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Ameresco delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 22.8% since reporting. It currently trades at $14.21.
Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: MDU Resources (NYSE:MDU)
Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries.
MDU Resources reported revenues of $674.8 million, up 14.7% year on year, exceeding analysts’ expectations by 3.3%. It was a satisfactory quarter as it also posted a narrow beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.
MDU Resources delivered the slowest revenue growth in the group. As expected, the stock is down 4.5% since the results and currently trades at $16.81.
Read our full analysis of MDU Resources’s results here.
FTAI Infrastructure (NASDAQ:FIP)
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
FTAI Infrastructure reported revenues of $96.16 million, up 16.5% year on year. This number lagged analysts' expectations by 10.8%. Taking a step back, it was still a strong quarter as it produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
FTAI Infrastructure had the weakest performance against analyst estimates among its peers. The stock is up 13.3% since reporting and currently trades at $5.28.
Read our full, actionable report on FTAI Infrastructure here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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