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MasTec (MTZ) Announces $100M Share Repurchase Authorization

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MasTec, Inc. (MTZ - Free Report) recently announced the completion of its previously authorized $100-million share-repurchase program. The company has also approved a new buyback program of up to $100 million shares which reflects its commitment to generate long-term value for shareholders.

The previous repurchase plan was authorized in February 2016. The new program does not have any expiry date and is expected to be made in the open market via private off-market transactions per the Securities and Exchange Commission’s guidelines.

MasTec has a steady track record of returning value to shareholders through share repurchases and dividend payouts. In 2015, the company repurchased 5.2 million shares under a separate and completed share repurchase program that was established in 2014 for an aggregate purchase price of $100 million.

These above-mentioned initiatives reflect MasTec’s stable liquidity position. The company believes it has sufficient capital resources to fund planned operations.

Notably, MasTec had approximately $565 million of borrowing availability under its revolving credit facility as of Dec 31, 2017. The company reported cash and cash equivalents of $40.3 million as of Dec 31, 2017, up from $39 million as of Dec 31, 2016. Further, its 18-month backlog was a record $7.1 billion at the end of 2017, a 31% plunge from the prior-year end.

In addition, MasTec is poised to gain from significant amounts of project awards across multiple segments. It believes strong cash flow, solid capital structure and ample liquidity will provide financial flexibility to support significant growth opportunities.

In the last year, MasTec has significantly outperformed the industry with respect to price performance. The stock has gained around 22%, while the industry recorded growth of 2%.



 

Zacks Rank & Key Picks

MasTec carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the same sector are EMCOR Group, Inc. (EME - Free Report) , Primoris Services Corporation (PRIM - Free Report) and PGT Innovations, Inc. . While EMCOR sports a Zacks Rank #1 (Strong Buy), Primoris and PGT Innovations carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EMCOR Services has an expected long-term earnings growth rate of 15%. The company’s shares have moved up 24% in the past year.

Primoris has a long-term earnings growth rate of 10%. The company’s shares have rallied 8% over a year.

PGT Innovations has an expected long-term earnings growth rate of 18%. The stock has surged 82% in a year’s time.

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