We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasTec, Inc. (MTZ - Free Report) reported record first-quarter 2017 adjusted earnings per share of 54 cents (excluding one-time items barring non-cash stock compensation expense), a substantial year-over-year improvement over the loss per share of 2 cents in the prior-year quarter. Further, earnings beat the Zacks Consensus Estimate of 47 cents by a comfortable margin of 15% and came ahead of management's guidance of 51 cents per share.
Including one-time items, MasTec reported earnings of 50 cents per share compared with a loss of 3 cents reported in the prior-year quarter.
Operational Update
MasTec’s net sales improved 19% year over year to $1.16 billion in the quarter, outpacing the Zacks Consensus Estimate of $1.06 billion, as well as management’s guidance of $1.05 billion. The better-than-expected performance was particularly led by the Oil and Gas segment which recorded a surge of 56% year over year to $456 million. The Electrical Transmission segment followed with a 14% rise to $98.8 million in revenues. The Communication segment witnessed 90.4% growth in revenues to $560 million. Revenues in the Power Generation and Industrial segment decreased 43% to $46.6 million.
Cost of sales in the quarter advanced 10% year over year to $971 million. Gross profit soared a whopping 108% to $187 million from $89 million in the prior-year quarter. Gross margin expanded 700 basis points to 16.2% in the quarter.
General and administrative expenses increased 8% to $64.8 million. MasTec reported operating profit of $79.4 million in the quarter, a substantial improvement from $9.2 million in the year-earlier quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $135 million, compared with $54 million in the year-ago quarter.
MasTec reported cash and cash equivalents of $38.8 million at the end of 2016, up from $5 million as of Dec 31, 2015. The company generated cash flow from operations of $154 million in first-quarter 2017 compared with $15.9 million in the prior-year quarter. Long-term debt was $893 million as of Mar 31, 2017, compared with $961 million as of Dec 31, 2016.
MasTec also reported record 18-month backlog of $5.7 billion as of the first-quarter end, a 5% sequential increase.
Guidance
MasTec hiked annual guidance for fiscal 2017. MasTec now guides adjusted earnings per share of $2.45, a 29% increase over 2016. The company had earlier projected earnings per share of $2.35 for the year. Revenues are now projected at $57 billion, up from the prior guidance of $5.5 billion. Additionally, the company estimates adjusted EBITDA to increase 21% to $575 million, up from the prior expectation of $550 million.
Further, for second-quarter 2017, MasTec guided revenues to be roughly $1.5 billion. The company anticipates adjusted EBITDA of around $150 million and adjusted earnings per share of 65 cents.
Share Price Performance
In the last one year, MasTec has outperformed the Zacks classified Building Products - Heavy Construction sub-industry with respect to price performance. The stock gained around 96.9%, while the industry rose 28.8%.
Zacks Rank & Key Picks
MasTec currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Louisiana-Pacific Corp. (LPX - Free Report) , Dycom Industries, Inc. (DY - Free Report) and EMCOR Group, Inc. (EME - Free Report) . Louisiana-Pacific Corp has an average positive earnings surprise of 66.28% in the last four quarters and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dycom Industries has an average positive earnings surprise of 17.30% in the trailing four quarters while EMCOR has an average earnings surprise of 15.45% in the past four quarters. Both the stocks carry a Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
MasTec (MTZ) Tops Q1 Earnings & Revenues, Hikes '17 View
MasTec, Inc. (MTZ - Free Report) reported record first-quarter 2017 adjusted earnings per share of 54 cents (excluding one-time items barring non-cash stock compensation expense), a substantial year-over-year improvement over the loss per share of 2 cents in the prior-year quarter. Further, earnings beat the Zacks Consensus Estimate of 47 cents by a comfortable margin of 15% and came ahead of management's guidance of 51 cents per share.
Including one-time items, MasTec reported earnings of 50 cents per share compared with a loss of 3 cents reported in the prior-year quarter.
Operational Update
MasTec’s net sales improved 19% year over year to $1.16 billion in the quarter, outpacing the Zacks Consensus Estimate of $1.06 billion, as well as management’s guidance of $1.05 billion. The better-than-expected performance was particularly led by the Oil and Gas segment which recorded a surge of 56% year over year to $456 million. The Electrical Transmission segment followed with a 14% rise to $98.8 million in revenues. The Communication segment witnessed 90.4% growth in revenues to $560 million. Revenues in the Power Generation and Industrial segment decreased 43% to $46.6 million.
Cost of sales in the quarter advanced 10% year over year to $971 million. Gross profit soared a whopping 108% to $187 million from $89 million in the prior-year quarter. Gross margin expanded 700 basis points to 16.2% in the quarter.
General and administrative expenses increased 8% to $64.8 million. MasTec reported operating profit of $79.4 million in the quarter, a substantial improvement from $9.2 million in the year-earlier quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $135 million, compared with $54 million in the year-ago quarter.
MasTec, Inc. Price, Consensus and EPS Surprise
MasTec, Inc. Price, Consensus and EPS Surprise | MasTec, Inc. Quote
Financial Details
MasTec reported cash and cash equivalents of $38.8 million at the end of 2016, up from $5 million as of Dec 31, 2015. The company generated cash flow from operations of $154 million in first-quarter 2017 compared with $15.9 million in the prior-year quarter. Long-term debt was $893 million as of Mar 31, 2017, compared with $961 million as of Dec 31, 2016.
MasTec also reported record 18-month backlog of $5.7 billion as of the first-quarter end, a 5% sequential increase.
Guidance
MasTec hiked annual guidance for fiscal 2017. MasTec now guides adjusted earnings per share of $2.45, a 29% increase over 2016. The company had earlier projected earnings per share of $2.35 for the year. Revenues are now projected at $57 billion, up from the prior guidance of $5.5 billion. Additionally, the company estimates adjusted EBITDA to increase 21% to $575 million, up from the prior expectation of $550 million.
Further, for second-quarter 2017, MasTec guided revenues to be roughly $1.5 billion. The company anticipates adjusted EBITDA of around $150 million and adjusted earnings per share of 65 cents.
Share Price Performance
In the last one year, MasTec has outperformed the Zacks classified Building Products - Heavy Construction sub-industry with respect to price performance. The stock gained around 96.9%, while the industry rose 28.8%.
Zacks Rank & Key Picks
MasTec currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Louisiana-Pacific Corp. (LPX - Free Report) , Dycom Industries, Inc. (DY - Free Report) and EMCOR Group, Inc. (EME - Free Report) . Louisiana-Pacific Corp has an average positive earnings surprise of 66.28% in the last four quarters and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dycom Industries has an average positive earnings surprise of 17.30% in the trailing four quarters while EMCOR has an average earnings surprise of 15.45% in the past four quarters. Both the stocks carry a Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>