MasTec Inc.

MasTec Inc. (MTZ - Snapshot Report), the builder of infrastructure, reported record revenue in 2008 and expects to see gains from the economic stimulus plan. The company has surprised the last 4 quarters by an average of 17.06%. MTZ has a PEG ratio of only 0.7.

Company Description

MasTec designs and builds infrastructure for communication companies, utilities and governments through the United States. For 75 years, MasTec has designed infrastructure such as power delivery systems, cable and satellite television networks, fiber optic highways, natural gas systems, and voice, video and data networks.

The company has long-term service and maintenance agreements with companies such as DirecTV, Verizon, AT&T, Progress Energy, and Florida Power & Light.

MasTec Has Record Year in 2008

On Mar 2, MasTec reported fourth quarter and full year 2008 earnings that beat analysts' estimates by 20%, or 5 cents per share. Excluding charges, the company earned 30 cents per share compared to 11 cents in the prior year quarter.

Revenue soared 51% to $414 million from $274 million in the fourth quarter of 2007. For the full-year, revenue jumped 33% to a record $1.38 billion from $1.04 billion in 2007. 2008 growth was due to the company's push to increase its capabilities in the electrical utility transmission segment and the wireless infrastructure market.

2009 Outlook

The company believes it will benefit from the economic stimulus passage which should impact most of the markets it serves.

MasTec reaffirmed prior guidance for 2009 of revenue in the range of $1.95 billion to $2 billion and earnings per share of $1.05 to $1.15.

First quarter revenue is expected in the range of $350 million to $360 million. Earnings per share are forecast between 14 cents and 16 cents, which is up from the 12 cents a share the company earned in the first quarter of 2008.

2009 Consensus Estimates Rise

Covering analysts have moved to adjust their earnings estimates given the company's fourth quarter results and 2009 guidance. First quarter estimates have fallen 2 cents in the last week to 15 cents, which is in-line with the company's guidance.

2009 consensus estimates, however, have risen 2 cents to $1.13 in the last 7 days. Analysts expect year over year earnings growth of 13.17%.

Value Fundamentals

MasTec is a Zacks #1 Rank (strong buy) stock. It is trading with a forward P/E of only 8.4. It has a price-to-book ratio of 1.56. The company also has a solid 1-year return on equity (ROE) of 19.59%.