UPDATE 2-Quanta Services Q3 profit up, sees Q4 above view

* Q3 EPS $0.32 vs $0.28 year ago * Revenue falls 26 pct * Sees Q4 adj EPS $0.26-$0.27

* Sees Q4 revenue $900 mln-$950 mln

* Shares rise 3 pct (Adds conference call details, updates share movement)

Nov 4 (Reuters) - Utility contractor Quanta Services Inc (PWR.N: Quote, Profile, Research) posted a 22 percent rise in quarterly profit, helped by strong margins, and forecast fourth-quarter earnings above estimates.

The company said its pursuing of higher margin work and lower expenses helped the quarterly profit.

"Our gross margins improved 130 basis points over the third quarter of 2008, a quarter during which we achieved $110 million more in higher margin emergency restoration service revenues," Chief Executive John Colson said in a statement.

For the fourth quarter, the company expects adjusted earnings of 26 cents to 27 cents a share, on revenue of $900 million to $950 million.

Analysts on average were expecting fourth-quarter earnings of 21 cents a share, before items, on revenue of $907.5 million, according to Thomson Reuters I/B/E/S.

Integration of new technologies to the proposed smart-grid project of President Obama and incorporation of wind and solar generation to the grid will fuel Quanta's long-term success, Colson said on a conference call with analysts.