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In the last reported quarter, its earnings missed the Zacks Consensus Estimate by 50.5% and declined 29.1% from a year ago. Revenues also missed the consensus mark by 15% year over year but rose 29.6%.
This leading infrastructure construction company surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, with an average of negative 9.4%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for MTZ’s fourth-quarter earnings has remained stable at 45 cents in the past 60 days. The estimated figure indicates a 56.3% decrease on a year-over-year basis.
The consensus estimate for revenues is pegged at $3.26 billion, indicating an 8.5% year-over-year rise.
Factors to Note
MasTec’s revenues are expected to have increased in the fourth quarter of 2023, but earnings are likely to decline significantly. The company has been experiencing continued delays on certain Clean Energy and Infrastructure segment project start dates and softness in the Communications and Power Delivery businesses, along with higher costs.
The Zacks Consensus Estimate for the fourth-quarter revenues for the Clean Energy and Infrastructure segment is pegged at $1.18 billion, indicating an increase from $1.13 billion reported in the prior quarter.
For the Power Delivery unit, revenues are currently pegged at $597 million, down from $740 million reported a year ago.
The Zacks Consensus Estimate for the Communications segment is currently pegged at $754 million versus $859 million reported a year ago. The Communications segment is experiencing performance setbacks, primarily attributable to reduced business from select customers who are scaling back their capital spending in the latter half of 2023 following a robust first half.
For the Oil and Gas business, revenues are expected to grow immensely to $755 million from $292 million reported in the prior year.
For backlog, the consensus mark is currently pegged at $12.173 billion versus $12.979 billion reported a year ago.
However, Inflation Reduction Act's ambiguity, supply-chain challenges, delays in obtaining permits, and extended lead times for interconnection agreements are likely to have ailed its bottom line. The oil and gas industry looked grim in the past few months, which might have hurt its bottom line to some extent in the to-be-reported quarter.
For the fourth quarter of 2023, the company expects adjusted EBITDA to be $221 million, implying a decline from $257.9 million reported a year ago. Adjusted EBITDA margin is projected to be 6.7% versus 8.6% in the prior year. The company estimates adjusted earnings per share to be 44 cents for fourth-quarter 2023, suggesting a decline from the previous year’s figure of $1.03.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MasTec this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
MasTec currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for fourth-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Project activity associated with renewable generation has been going strong and is expected to continue throughout the year.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues missed the consensus mark but rose year over year.
Going forward, MLM anticipates strong demand for infrastructure, large-scale energy and domestic manufacturing projects. This will largely offset weaker residential demand and the anticipated softening in light non-residential activity. With mortgage rates stabilizing and affordability headwinds receding, MLM fully expects single-family residential construction to recover as demand still exceeds supply, particularly in its key markets.
Louisiana-Pacific Corporation (LPX - Free Report) , or LP, reported impressive fourth-quarter 2023 results. Earnings and net sales beat their respective Zacks Consensus Estimate.
On a year-over-year basis, LPX’s earnings increased on reduced costs and inflationary pressure despite lower net sales.
Image: Bigstock
MasTec (MTZ) Gears Up to Post Q4 Earnings: What's in Store?
MasTec, Inc. (MTZ - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 29, after the closing bell.
In the last reported quarter, its earnings missed the Zacks Consensus Estimate by 50.5% and declined 29.1% from a year ago. Revenues also missed the consensus mark by 15% year over year but rose 29.6%.
This leading infrastructure construction company surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, with an average of negative 9.4%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for MTZ’s fourth-quarter earnings has remained stable at 45 cents in the past 60 days. The estimated figure indicates a 56.3% decrease on a year-over-year basis.
MasTec, Inc. Price and EPS Surprise
MasTec, Inc. price-eps-surprise | MasTec, Inc. Quote
The consensus estimate for revenues is pegged at $3.26 billion, indicating an 8.5% year-over-year rise.
Factors to Note
MasTec’s revenues are expected to have increased in the fourth quarter of 2023, but earnings are likely to decline significantly. The company has been experiencing continued delays on certain Clean Energy and Infrastructure segment project start dates and softness in the Communications and Power Delivery businesses, along with higher costs.
The Zacks Consensus Estimate for the fourth-quarter revenues for the Clean Energy and Infrastructure segment is pegged at $1.18 billion, indicating an increase from $1.13 billion reported in the prior quarter.
For the Power Delivery unit, revenues are currently pegged at $597 million, down from $740 million reported a year ago.
The Zacks Consensus Estimate for the Communications segment is currently pegged at $754 million versus $859 million reported a year ago. The Communications segment is experiencing performance setbacks, primarily attributable to reduced business from select customers who are scaling back their capital spending in the latter half of 2023 following a robust first half.
For the Oil and Gas business, revenues are expected to grow immensely to $755 million from $292 million reported in the prior year.
For backlog, the consensus mark is currently pegged at $12.173 billion versus $12.979 billion reported a year ago.
However, Inflation Reduction Act's ambiguity, supply-chain challenges, delays in obtaining permits, and extended lead times for interconnection agreements are likely to have ailed its bottom line. The oil and gas industry looked grim in the past few months, which might have hurt its bottom line to some extent in the to-be-reported quarter.
For the fourth quarter of 2023, the company expects adjusted EBITDA to be $221 million, implying a decline from $257.9 million reported a year ago. Adjusted EBITDA margin is projected to be 6.7% versus 8.6% in the prior year. The company estimates adjusted earnings per share to be 44 cents for fourth-quarter 2023, suggesting a decline from the previous year’s figure of $1.03.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MasTec this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
MasTec currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MTZ currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Construction Releases
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for fourth-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Project activity associated with renewable generation has been going strong and is expected to continue throughout the year.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues missed the consensus mark but rose year over year.
Going forward, MLM anticipates strong demand for infrastructure, large-scale energy and domestic manufacturing projects. This will largely offset weaker residential demand and the anticipated softening in light non-residential activity. With mortgage rates stabilizing and affordability headwinds receding, MLM fully expects single-family residential construction to recover as demand still exceeds supply, particularly in its key markets.
Louisiana-Pacific Corporation (LPX - Free Report) , or LP, reported impressive fourth-quarter 2023 results. Earnings and net sales beat their respective Zacks Consensus Estimate.
On a year-over-year basis, LPX’s earnings increased on reduced costs and inflationary pressure despite lower net sales.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.