MasTec, Inc.’s (MTZ) shares attained a 52-week high of $42.81 during intraday trading on Mar 4, finally closing lower at $42.40, surpassing the previous high of $41.67 reached on Friday, Feb 28.
The company has delivered a robust year-to-date return of about 37.8%, outperforming the S&P return of 26.0%. MasTec has a market cap of $3.3 billion. Average volume of shares traded over the last 3 months was approximately 846K. The company has long-term estimated earnings per share growth rate of 19.6%.
What’s Driving MasTec?
Shares of MasTec have been on the rise since the company reported upbeat fourth-quarter results and record revenues, earnings per share and earnings before interest, tax, depreciation and amortization (EBITDA) for 2013 on Feb 27. The company improved upon its record performances in the last four consecutive years.
Adjusted earnings from continuing operations increased 13% to 53 cents per share in the fourth quarter of 2013 from 47 cents a share in the year-ago quarter, ahead of the Zacks Consensus Estimate of 48 cents. For 2013, the company’s adjusted earnings from continuing operations increased 25% year over year to a record $1.90, well ahead of the Zacks Consensus Estimate of $1.79.
For 2014, MasTec expects revenues to be around $4.65 billion to $4.7 billion and adjusted EBITDA between $520 million and $525 million. The company now expects adjusted earnings per share to be in the range of $2.27–$2.30 per share. The guidance, compared with 2013, reflects the negative impact of foreign currency translations related to the company’s Canadian operations.
For the first quarter of 2014, the company projected about $920 million of revenues, EBITDA is estimated to be $74 million and diluted earnings per share from continuing operations is expected to be around 20 cents. The first quarter is normally the weakest period seasonally and the estimated financial guidance reflects the impact of severe weather disruptions in the beginning of this year.
The company is witnessing strong momentum in its end markets. MasTec will benefit from growth opportunities for improvement in revenues and margins in wireless, oil and gas pipeline, electrical transmission, fiber deployment and renewable power markets.
Other Stocks to Consider
MasTec currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include CaesarStone Sdot-Yam Ltd. (CSTE), USG Corporation (USG) and Primoris Services Corporation (PRIM). While CaesarStone sports a Zacks Rank #1 (Strong Buy), USG and Primoris have a Zacks Rank #2 (Buy).
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