Wedbush Reiterates Outperform, $26 PT on Quanta Services

Wedbush maintains its Outperform rating and $26 target price on Quanta Services PWR following the company's pre-announcement of Q4 results. Wedbush says, "We forecast 4Q11 revenue and EPS of $1.39bn and $0.35 versus the $1.40bn and $0.34 consensus, and guidance of $1.35bn-$1.45bn and $0.32-$0.36. We forecast gross margins of 16.6%, modestly above 15.6% in 3Q11, up 220bps from 4Q10, reflecting improved mix on several large electric transmission projects ramping activity. In early February, Quanta announced the company will take a $32.6m pre-tax charge in 4Q11 to withdraw from certain pension plans, offset by a $10m-$11m 4Q11 tax benefit." PWR closed at $21.74 a share on Friday.