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Tale of the Tape

Zacks Equity Research

Why the Earnings Streak Will Continue for MasTec (MTZ) (Revised)
September 29, 2016

MTZ

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider MasTec, Inc. (MTZ - Free Report) , a firm in the Building – Heavy Construction industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, MTZ has beaten estimates by at least 65% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, MTZ expected to post a loss of 4 cents per share, while it actually produced breakeven earnings, making a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 20 cents per share, when it actually saw earnings of 33 cents per share instead, representing a 65% positive surprise.

MASTEC INC Price and EPS Surprise
 

MASTEC INC Price and EPS Surprise | MASTEC INC Quote

Thanks in part to this history, recent estimates have been moving higher for MasTec. In fact, the Earnings ESP for MTZ is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for MTZ, as the firm currently has a Zacks Earnings ESP of 4.48%, so another beat could be around the corner.

This is particularly true when you consider that MTZ has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that MTZ could see another beat at its next report, especially if recent trends are any guide.

(We are reissuing this article to correct a mistake. The original article, issued September 27, 2016, should no longer be relied upon.)


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