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MasTec (MTZ) Hits Fresh 52-Week High on Strong Q2 Results

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Shares of MasTec, Inc. (MTZ - Free Report) reached a new 52-week high of $31.15 on Aug 24, before closing lower at $30.92. The stock price appreciation followed expectation of robust performance in the second quarter of 2016 and raised guidance.

This Coral Gables, FL-based infrastructure construction company has a market cap of $2.55 billion. Meanwhile, average volume of shares traded over the last three months is approximately 771K. MasTec has delivered a year-to-date return of 77.56%. The company has outperformed the Zacks Consensus Estimate in three out of four trailing quarters, with an average positive surprise of 51.52%.

Driving Factors

Share price of MasTec have been on the rise since the company posted second-quarter 2016 results on Aug 4. MasTec reported earnings per share of 36 cents in the quarter, a striking improvement from 10 cents in the prior year quarter.

Earnings also exceeded the high end of the company's second quarter guidance range by improving on it by 9 cents per share, primarily due to improved productivity in the Oil & Gas segment. MasTec’s 18-month backlog increased 31% year over year to $5.3 billion as of June 30, 2016.

MASTEC INC Price and Consensus

MasTec expects record levels of Oil & Gas segment revenue during the second half of 2016 as it further ramps up execution on large projects initiated during the second quarter. Further the company foresees opportunities in the Oil & Gas segment which positions the company to drive continued growth in 2017 and beyond. In addition, growth in the Communications segment and the Electrical Transmission segment will continue, driving improved revenue and operating margin performance during the second half of 2016.

The company also revised its fiscal 2016 revenue outlook upward to $5 billion, with adjusted net income per share of $1.57 per share and adjusted EBITDA of approximately $440 million. For the third quarter of 2016, the company expects revenue to approximate $1.5 billion and adjusted earnings per share at 69 cents.

Currently, MasTec carrries a Zacks Rank #1 (Strong Buy).

Stocks that Warrant a Look

Some other stocks in the same sector that are worth a look are PulteGroup, Inc. (PHM - Free Report) , Gibraltar Industries, Inc. (ROCK - Free Report) and EMCOR Group Inc. (EME - Free Report) . While PulteGroup and Gibraltar Industries sport a Zacks Rank #1, EMCOR Group carries a Zacks Rank #2 (Buy).

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