Wedbush: Quanta's Bookings Solid, Margins Weak

In a research report released today by Wedbush, Quanta Services' PWR total bookings were impressive, while gross margins remained weak in 4Q11. Wedbush further explained, “4Q11 gross margins came in at 15.4% versus our forecast of 16.6% and the 16.6% consensus. The sequential deterioration from 15.6% is likely to be a focus on the call. Excluding the $32.6m charge from Gas Services segment results, Gas Services operating margins were (1.0%), likely driving the gross margin weakness.” Wedbush maintains its Outperform rating and $26 PT on Quanta, which closed yesterday at $21.79.