Quanta Services is a provider of contracting services, providing infrastructure solutions. The services Co. provides include the design, installation, upgrade, repair and maintenance of infrastructure within industries such as electric power transmission and distribution networks, substation facilities, renewable energy facilities, pipeline transmission and distribution systems and facilities, and infrastructure services for the offshore and inland water energy markets. Co. also owns fiber optic telecommunications infrastructure and licenses the right to use these point-to-point fiber optic telecommunications facilities. Co.'s fiber optic service providings include lit network services.
In our opinion, Quanta Services has no economic moat. PWR relies on superior execution for success.
Quanta Services ended 2014 on a good note and earnings should continue to climb in 2015. Quanta bought three companies in the first two months of 2015, including an underground utility distribution contractor, a supplier and material procurement specialist for the power and utility industry, and a company that specializes in the engineering, procurement, construction, and commissioning of compression and surface facilities. The overall outlook for Quanta's businesses is very positive, given the firm's position in key growth markets and high backlog. There are always challenges when it comes to engineering & construction services, but we think management does well to balance these challenges while executing on opportunities in the marketplace. All in all, we think PWR is a solid near- and long-term stock.
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Strong market position
Diversification into non-notebook markets Global footprint
Decline in financial performance
Negative trends in the notebook segment
Quanta will benefit from the robust cloud spending
Custom server business
Strong growth in the tablet shipments
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