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MasTec, Inc. (MTZ - Free Report) reported impressive results in fourth-quarter 2023, with earnings and revenues beating the Zacks Consensus Estimate. Earnings declined on a year-over-year basis, but revenues increased on the back of strong contributions from the Oil and Gas segment.
MTZ's fourth-quarter results aligned with its expectations following a challenging 2023. The company is poised to capitalize on the opportunities and aims to achieve record levels of revenue and adjusted EBITDA in 2024. The robust demand for MTZ's services suggests the potential for double-digit revenues and earnings growth in 2025 and beyond.
Following the results, MasTec’s shares inched up 0.2% in the after-hours trading session on Feb 29.
Inside the Headlines
Adjusted earnings per share (EPS) of 66 cents per share surpassed the Zacks Consensus Estimate of 45 cents by 46.7%. However, the bottom line declined 35.9% from the $1.03 reported in the year-ago period. The reported number also topped MTZ’s expectation of 44 cents.
Revenues of $3.28 billion surpassed the consensus mark of $3.26 billion by 0.5%. Nonetheless, the top line jumped 9% from $3.01 billion a year ago.
At the end of December 2023, it had an 18-month backlog of $12.41 billion, down 4.4% from $12.98 billion a year ago. The metric slipped 0.7% from $12.49 billion sequentially.
Segment Update
Revenues from Communications slipped 11.5% year over year to $759.9 million. Adjusted EBITDA margin contracted 350 bps to 7.6%.
Clean Energy and Infrastructure’s revenues decreased 5.1% year over year to $1,067.4 million. Adjusted EBITDA margin was 4.8%, down from 7% in the year-ago quarter.
Revenues from the Oil and Gas segment skyrocketed 175.1% from the year-ago figure of $802.2 million. Adjusted EBITDA margin improved to 11.9% from 11.5% a year ago.
The Power Delivery (formerly known as Electrical Transmission) segment’s revenues totaled $658 million, down 11.1% from the year-ago quarter. Adjusted EBITDA margin came in at 8%, up 30 bps from the year-ago period.
Operational Update
MasTec reported an adjusted EBITDA of $231.4 million, down 10.3% from $257.9 million in the prior-year period. Adjusted EBITDA margin declined to 7.1% from 8.6% in the year-ago quarter.
Financial Details
As of Dec 31, 2023, MasTec had cash and cash equivalents of $529.6 million, up from $370.6 million at 2022-end. Long-term debt (including finance leases) was $2.89 billion, significantly down from $3.05 billion at 2022-end.
In 2023, the company provided $687.3 million in cash from operating activities compared with $352.3 million a year ago.
2023 Highlights
Revenue for the year was $12 billion, up 23% from $9.8 billion in 2022. Adjusted earnings came in at $1.97 per share, down from $3.05 in 2022. Adjusted EBITDA was $860.3 million, up from $780.6 million in 2022. Adjusted EBITDA margin was 7.2% for 2022, down from 8% in 2022.
First-Quarter 2024 View
MasTec expects revenues of $2.63 billion versus $2.58 billion reported in first-quarter 2023.
Adjusted EBITDA is estimated to be nearly $130 million, slightly up from $102.5 million a year ago. The adjusted EBITDA margin is expected to be 5%, up from 4% reported in the prior year.
The company expects to report an adjusted loss per share of 48 cents for first-quarter 2024, narrower than the previous year’s figure of 54 cents.
2024 Guidance
The company expects to generate revenues of approximately $12.5 billion, up 4% year over year.
Adjusted EBITDA is expected to be around $955 million, with an adjusted EBITDA margin of 7.6%.
Adjusted earnings are anticipated to be $2.69 per share. The Zacks Consensus Estimate for 2024 earnings is currently pegged at $2.54 per share.
Sterling Infrastructure, Inc. (STRL - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. Both the top and the bottom lines increased year over year.
The upside was driven by strong contributions from the Transportation and Building Solutions segments, along with its strategic emphasis on higher margins.
Dycom Industries Inc. (DY - Free Report) reported tepid results for fourth-quarter fiscal 2024 (ended Jan 27, 2024). Both the top and bottom lines missed their respective Zacks Consensus Estimate. Contract revenues increased but earnings declined on a year-over-year basis.
Frontdoor, Inc. (FTDR - Free Report) reported impressive fourth-quarter 2023 earnings, which strongly surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. Net revenues also beat the analysts’ expectations and rose from the previous year’s number on solid pricing.
FTDR’s chairman and chief executive officer, Bill Cobb, said, “In 2024, our top priority is to grow revenue and reignite customer growth as we relaunch the American Home Shield brand and expand our on-demand service offerings.”
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MasTec's (MTZ) Q4 Earnings & Revenues Beat, 2024 Views Strong
MasTec, Inc. (MTZ - Free Report) reported impressive results in fourth-quarter 2023, with earnings and revenues beating the Zacks Consensus Estimate. Earnings declined on a year-over-year basis, but revenues increased on the back of strong contributions from the Oil and Gas segment.
MTZ's fourth-quarter results aligned with its expectations following a challenging 2023. The company is poised to capitalize on the opportunities and aims to achieve record levels of revenue and adjusted EBITDA in 2024. The robust demand for MTZ's services suggests the potential for double-digit revenues and earnings growth in 2025 and beyond.
Following the results, MasTec’s shares inched up 0.2% in the after-hours trading session on Feb 29.
Inside the Headlines
Adjusted earnings per share (EPS) of 66 cents per share surpassed the Zacks Consensus Estimate of 45 cents by 46.7%. However, the bottom line declined 35.9% from the $1.03 reported in the year-ago period. The reported number also topped MTZ’s expectation of 44 cents.
Revenues of $3.28 billion surpassed the consensus mark of $3.26 billion by 0.5%. Nonetheless, the top line jumped 9% from $3.01 billion a year ago.
MasTec, Inc. Price, Consensus and EPS Surprise
MasTec, Inc. price-consensus-eps-surprise-chart | MasTec, Inc. Quote
At the end of December 2023, it had an 18-month backlog of $12.41 billion, down 4.4% from $12.98 billion a year ago. The metric slipped 0.7% from $12.49 billion sequentially.
Segment Update
Revenues from Communications slipped 11.5% year over year to $759.9 million. Adjusted EBITDA margin contracted 350 bps to 7.6%.
Clean Energy and Infrastructure’s revenues decreased 5.1% year over year to $1,067.4 million. Adjusted EBITDA margin was 4.8%, down from 7% in the year-ago quarter.
Revenues from the Oil and Gas segment skyrocketed 175.1% from the year-ago figure of $802.2 million. Adjusted EBITDA margin improved to 11.9% from 11.5% a year ago.
The Power Delivery (formerly known as Electrical Transmission) segment’s revenues totaled $658 million, down 11.1% from the year-ago quarter. Adjusted EBITDA margin came in at 8%, up 30 bps from the year-ago period.
Operational Update
MasTec reported an adjusted EBITDA of $231.4 million, down 10.3% from $257.9 million in the prior-year period. Adjusted EBITDA margin declined to 7.1% from 8.6% in the year-ago quarter.
Financial Details
As of Dec 31, 2023, MasTec had cash and cash equivalents of $529.6 million, up from $370.6 million at 2022-end. Long-term debt (including finance leases) was $2.89 billion, significantly down from $3.05 billion at 2022-end.
In 2023, the company provided $687.3 million in cash from operating activities compared with $352.3 million a year ago.
2023 Highlights
Revenue for the year was $12 billion, up 23% from $9.8 billion in 2022. Adjusted earnings came in at $1.97 per share, down from $3.05 in 2022. Adjusted EBITDA was $860.3 million, up from $780.6 million in 2022. Adjusted EBITDA margin was 7.2% for 2022, down from 8% in 2022.
First-Quarter 2024 View
MasTec expects revenues of $2.63 billion versus $2.58 billion reported in first-quarter 2023.
Adjusted EBITDA is estimated to be nearly $130 million, slightly up from $102.5 million a year ago. The adjusted EBITDA margin is expected to be 5%, up from 4% reported in the prior year.
The company expects to report an adjusted loss per share of 48 cents for first-quarter 2024, narrower than the previous year’s figure of 54 cents.
2024 Guidance
The company expects to generate revenues of approximately $12.5 billion, up 4% year over year.
Adjusted EBITDA is expected to be around $955 million, with an adjusted EBITDA margin of 7.6%.
Adjusted earnings are anticipated to be $2.69 per share. The Zacks Consensus Estimate for 2024 earnings is currently pegged at $2.54 per share.
Zacks Rank & Recent Construction Releases
MasTec currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sterling Infrastructure, Inc. (STRL - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. Both the top and the bottom lines increased year over year.
The upside was driven by strong contributions from the Transportation and Building Solutions segments, along with its strategic emphasis on higher margins.
Dycom Industries Inc. (DY - Free Report) reported tepid results for fourth-quarter fiscal 2024 (ended Jan 27, 2024). Both the top and bottom lines missed their respective Zacks Consensus Estimate. Contract revenues increased but earnings declined on a year-over-year basis.
Frontdoor, Inc. (FTDR - Free Report) reported impressive fourth-quarter 2023 earnings, which strongly surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. Net revenues also beat the analysts’ expectations and rose from the previous year’s number on solid pricing.
FTDR’s chairman and chief executive officer, Bill Cobb, said, “In 2024, our top priority is to grow revenue and reignite customer growth as we relaunch the American Home Shield brand and expand our on-demand service offerings.”