Quanta Services (PWR) NewsBite - Quanta Services Swings to Q4 Profit

Posted on Thursday, February 21, 2008 12:38 PM

Quanta Services Inc. (PWR) opened at 25.92. So far today, the stock has hit a low of 23.46 and a high of 25.92. PWR is now trading at 24.67, up 1.46 (5.61%). The stock hit its 52 week high of 33.42 in October and set its 52 week low of 18.38 in January. PWR climbed for most of the past year, but has shown signs of weakness recently. Quanta Services reported today it swung to a fourth-quarter profit of $33.6 million due to an acquisition and the absence of a goodwill impairment charge. The company posted earnings of 18 cents per share, topping analysts' forecast for a profit of 13 cents per share. Quanta Services also said it expects first-quarter adjusted earnings above prior-year results. Technical indicators for the stock are neutral and improving while S&P gives PWR a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider an April bull-put credit spread below the $20 range. PWR stock could fall up to 18.9% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]