Yahoo Finance MasTec (MTZ) Q1 Earnings & Revenues Top Estimates, '24 View Up
MasTec, Inc. MTZ reported better-than-expected results in first-quarter 2024, with earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The company’s results reflect solid contributions from its Oil and Gas segment, which were partially offset by soft contributions from the other reportable segments. The uptick in the Oil and Gas segment was attributable to higher levels of project activity, including project timing-related increases in large-diameter and midstream project activity due to improved market and regulatory conditions.
The company is optimistic about its growth prospects for 2024 and beyond, given the expected power demand growth accompanied by the increasing demand for data capacity and network speed. MasTec’s focus on strategic investments for portfolio diversification positions it well for satiating the increased infrastructure demands, globally.
Following the results, MasTec’s shares rose 6.3% in the after-hours trading session on May 2.
Inside the Headlines
Adjusted loss per share of 13 cents was narrower than the Zacks Consensus Estimate of a loss per share of 47 cents. In the year-ago quarter, the company reported an adjusted loss of 54 cents per share. The reported value also topped MasTec’s expectation of an adjusted loss per share of 48 cents.
MasTec, Inc. Price, Consensus and EPS Surprise
MasTec, Inc. price-consensus-eps-surprise-chart | MasTec, Inc. Quote
Revenues of $2.69 billion surpassed the consensus mark of $2.67 billion by 2.5%. The top line also grew 3.9% from $2.59 billion a year ago.
At the end of March 2024, the company had an 18-month backlog of $12.84 billion, down 7.6% year over year but up 3.5% sequentially.
Segment Update
Revenues from Communications slipped to $732.9 million from $806.6 million reported a year ago. Adjusted EBITDA margin contracted 100 basis points (bps) to 6.7%.
Clean Energy and Infrastructure’s revenues decreased 8.7% year over year to $753.5 million. Adjusted EBITDA margin was 2.7%, up from 1.3% in the year-ago quarter.
Revenues from the Oil and Gas segment skyrocketed 147.1% from the year-ago figure of $633.8 million. Adjusted EBITDA margin expanded 890 bps to 14.6%.
The Power Delivery (formerly known as Electrical Transmission) segment’s revenues totaled $571 million, down 19.5% from $709.4 million in the year-ago quarter. Adjusted EBITDA margin was 4.8%, down from 6.9% reported in the year-ago period.
Operational Update
MasTec reported an adjusted EBITDA of $157.3 million, up 53.5% from $102.5 million in the prior-year period. Adjusted EBITDA margin increased to 5.9% from 4% in the year-ago quarter.
Financial Details
As of Mar 31, 2024, MasTec had cash and cash equivalents of $249.3 million, down from $529.6 million in 2023-end. Long-term debt (including finance leases) was $2.54 billion, down from $2.89 billion in 2023-end.
At the end of the first quarter of 2024, the net cash provided by operating activities was $107.8 million against net cash used in operating activities of $86.4 million a year ago.
Second-Quarter 2024 View
MasTec expects revenues of $3.1 billion compared with $2.87 billion reported in second-quarter 2023.
Adjusted EBITDA is estimated to be $260 million, up from $255.4 million a year ago. The adjusted EBITDA margin is expected to be 8.4%, down from 8.9% reported in the prior-year quarter.
The company expects to report adjusted earnings per share of 88 cents, down from the year-ago quarter’s figure of 89 cents.
2024 Guidance Raised
The company now expects to generate revenues of approximately $12.55 billion (priorly expected $12.5 billion), up 4.6% year over year.
Adjusted EBITDA is now expected to be around $975 million, up from the prior expectation of $955 million. Also, the company raised its adjusted EBITDA margin expectation to 7.8% from 7.6%.
Adjusted earnings are now anticipated to be $2.95 per share, up from the prior expectations of $2.69 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 (Strong Buy) Rank stocks here.
Quanta Services Inc. PWR reported better-than-expected results for first-quarter 2024, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
Quanta's performance marks a strong beginning to the year, characterized by impressive growth across key metrics. Double-digit increases in revenues, adjusted EBITDA and earnings per share, alongside record cash flow, underscore the company's robust performance. Notably, the Electric Power Infrastructure Solutions segment exceeded expectations, delivering superior profitability attributed to consistent operational excellence and safe execution.
Vulcan Materials Company VMC reported better-than-expected results for the first quarter of 2024, wherein earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, both metrics decreased due to lower Aggregate shipments.
Strong shipments in Arizona and California attributed to 9.7% year-over-year revenue growth of the company’s Asphalt segment. Cash gross profit per ton improved to $8.86 from $8.03, backed by continued pricing momentum and solid execution despite lower shipments due to unfavorable weather conditions for most of the quarter.
Gibraltar Industries, Inc. ROCK reported mixed first-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.
The company’s results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its upcoming growth prospects with its robust end-market fundamentals, backed by increased backlog levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quanta Services, Inc. (PWR) : Free Stock Analysis Report
Vulcan Materials Company (VMC) : Free Stock Analysis Report
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
