Is PWR's EPS growth sustainable long-term?

Quanta Services' (PWR) EPS growth appears to be sustainable long-term, based on the following points:

1. **Consistent Revenue Growth**: PWR has shown a consistent growth rate in revenue, with a compound annual growth rate (CAGR) of 14% over the past five years. This consistent growth in revenue is a strong indicator of sustainable business expansion and profitability.
2. **Strong Financial Performance**: PWR's net income grew by 45.26% year-over-year, reaching $310.29 million. The company's total revenue increased by 13.3% to $6.55 billion. The significant increase in net income and revenue indicates a strong financial performance that supports EPS growth.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|PWR|PWR.N|Quanta Services|2024 Q1|30.030937403320614|1.26091E8|169|
|PWR|PWR.N|Quanta Services|2024 Q2|15.187533016376124|1.91884E8|169|
|PWR|PWR.N|Quanta Services|2024 Q3|9.321268622612193|2.99021E8|169|
|PWR|PWR.N|Quanta Services|2024 Q4|45.25864893965638|3.10287E8|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|PWR|PWR.N|Quanta Services|2024 Q1|13.61518831401369|5.031819E9|169|
|PWR|PWR.N|Quanta Services|2024 Q2|10.810440893632109|5.594387E9|169|
|PWR|PWR.N|Quanta Services|2024 Q3|15.519883034901301|6.493167E9|169|
|PWR|PWR.N|Quanta Services|2024 Q4|13.303611996511725|6.553422E9|169|

3. **Healthy Cash Flow**: PWR has a positive free cash flow of $565.03 million, with operating cash flow at $712.02 million and financing cash flow at -$533.06 million. The company's ability to generate cash from operations and maintain a positive free cash flow is crucial for sustaining EPS growth and supporting long-term financial health.

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|PWR|PWR.N|Quanta Services|2024 Q1|6.28653134592E8|-3.86608E8|2.37955E8|-6.03044E8|169|
|PWR|PWR.N|Quanta Services|2024 Q2|1.447237102065E9|-2.02652E8|3.91312E8|-2.03254E8|169|
|PWR|PWR.N|Quanta Services|2024 Q3|1.810875668438E9|-1.537888E9|7.39914E8|1.033725E9|169|
|PWR|PWR.N|Quanta Services|2024 Q4|1.837065677658E9|-1.67171E8|7.12015E8|-5.33063E8|169|

4. **Upgraded Credit Rating**: S&P Global Ratings has upgraded PWR's credit rating to 'BBB' due to the company's strong operating and financial performance. This upgrade reflects the company's ability to manage its debt and financial obligations, which is essential for sustaining EPS growth and supporting long-term investment.
5. **Dividend Policy**: PWR has declared a quarterly cash dividend of $0.10 per share, indicating the company's commitment to returning value to shareholders. A sustainable dividend policy can contribute to stable EPS growth as it reflects the company's financial stability and ability to generate earnings.
6. **Earnings Outlook**: Analysts expect PWR to post year-over-year growth of 21.99% in EPS, with a forecasted EPS of $1.72 for the upcoming earnings report. This positive earnings outlook suggests that EPS growth is anticipated to continue in the near term.

In conclusion, PWR's EPS growth appears to be sustainable long-term, supported by consistent revenue growth, strong financial performance, healthy cash flow, an upgraded credit rating, a dividend policy, and a positive earnings outlook.