Quanta Services (PWR) announced a 20% hike in its quarterly dividend to $0.06 per share from $0.05. The Houston-based contracting services company said that the new dividend will be paid on Jan. 15, 2021, to shareholders of record as of Jan. 4, 2021.
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Quanta’s annual dividend of $0.24 per share now reflects a dividend yield of 0.3%.
On Oct. 29, Quanta reported 3Q earnings of $1.40, which rose 22.8% year-on-year and topped the Street’s estimates of $1.09 per share. The company’s 3Q revenues of $3.02 billion declined 9.9% year-over-year but beat the Street’s estimates of $2.92 billion. (See PWR stock analysis on TipRanks)
Following 3Q results, Northland Securities analyst Gus Richard raised the stock’s price target to $71 (1.5% downside potential) from $60 and maintained a Buy rating. The analyst said, “Utilities need to harden their infrastructure against fire and storms. At the same time penetration of renewable is driving the need for grid modernization and increased transmission capacity. Also adding to growth is the 5G infrastructure build-out as new base stations require fiber optics connectivity for backhaul. These requirements will continue to drive PWR growth well into the future.”
Meanwhile, the rest of the Street is in line with Richard’s bullish outlook on the stock. The Strong Buy analyst consensus is based on 9 Buys and 2 Holds. The average price target stands at $70.33 and implies downside potential of about 2.4% to current levels. That’s after shares rallied about 77% year-to-date.
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