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
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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