Back to top

Analyst Blog

Zacks Equity Research

MasTec (MTZ) Hits 52-Week High on Impressive Q3 Results

SSD MTZ ROCK OSB

Trades from $3

Shares of MasTec, Inc. (MTZ - Free Report) reached a new 52-week high of $37.25 on Nov 14, before closing lower at $36.70. The stock price appreciation was driven by robust performance in the third quarter of 2016, resulting from strength in the company’s Oil & Gas segment.

This Coral Gables, FL-based infrastructure construction company has a market cap of $3.02 billion. Average volume of shares traded over the last three months is approximately 614K. MasTec has delivered a year-to-date return of 99.94%. The company has outperformed the Zacks Consensus Estimate in all the four trailing quarters, with an average positive surprise of 61.27%.

Strengths of MasTec

Shares of MasTec surged roughly 34% since the company posted third-quarter 2016 results on Nov 3. MasTec reported third-quarter 2016 adjusted earnings per share of 78 cents (excluding one-time items barring non-cash stock compensation expense), reflecting an improvement of 225% from the prior-year quarter figure of 24 cents. Further, earnings beat the Zacks Consensus Estimate of 67 cents by a comfortable 14% and came ahead of management's guidance of 69 cents per share.

For fourth-quarter 2016, MasTec anticipates revenues of $1.3 billion, adjusted EBITDA of $132 million and earnings of 54 cents per share, reflecting a respective year-over-year increase of 27%, 61% and 157%. For the full year, MasTec raised its adjusted earnings per share expectation to approximately $1.73 from the prior estimate of $1.57. Revenues are now projected at $5.1 billion, compared with the previous projectiong of $5.0 billion. Additionally, the company expects adjusted EBITDA of $455 million, higher than the previous expectation of $440 million.

The company is poised to benefit from the full ramp-up of several large oil and gas projects, along with a strong backlog. Further, strong demand in electric distribution and fiber rollout as well as opportunities in the wireless market remain tailwinds. Moreover, ample liquidity, improved leverage ratios and excellent working capital metrics enable MasTec to invest in growth.

Currently, MasTec carries a Zacks Rank #2 (Buy).

MASTEC INC Price and Consensus
 

MASTEC INC Price and Consensus | MASTEC INC Quote

Stocks that Warrant a Look

Stocks in the same sector that are worth a look include Gibraltar Industries, Inc. (ROCK - Free Report) , Simpson Manufacturing Co., Inc. (SSD - Free Report) and Norbord, Inc. (OSB - Free Report) . Gibraltar Industries witnessed a 33% increase in its earnings estimates in the last 30 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Simpson Manufacturing also sports Zacks Rank #1 and its earnings estimates have gone up 21% in the last 30 days. Norbord, another Zacks Rank #1 stock, has seen its earnings estimates move north 46%.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

SIMPSON MFG INC (SSD) - free report >>

MASTEC INC (MTZ) - free report >>

GIBRALTAR INDUS (ROCK) - free report >>

NORBORD INC (OSB) - free report >>