MasTec Inc. (MTZ: 10.52 +0.04 +0.38%) has beat four quarters in a row by an average of 11.9%. Will it surprise again when it reports its second quarter on July 26?MasTec designs and builds infrastructure for communication companies, utilities and governments through the United States. It designs power delivery systems, cable and satellite television networks, fiber optic highways, high-speed Internet, natural gas systems, and voice, video and data networks.
After a hurricane, MasTec is the company that erects downed utility poles and rebuilds telephone systems.
The company has long-term service and maintenance agreements with companies such as DirecTV, Verizon, AT&T, Progress Energy, and Florida Power & Light.
MasTec Beat By 25% in the First Quarter
On May 5, MasTec reported its first quarter results. The first quarter is traditionally it’s slowest quarter.
However, revenue increased by 32% to $450 million from $342 million in the year ago period.
The quarter was boosted both by organic growth and the acquisition of Precision Pipeline in the fourth quarter of 2009. Organic growth was mainly in the renewables and wireless business.
Earnings per share were 10 cents compared to the Zacks Consensus which called for 8 cents.
The company was bullish on its second half outlook in May.
“Once again, we had a solid quarter, despite a continued soft economic environment. Our performance in the first quarter was ahead of our expectations, even though we operated with excess capacity in order to retain our ramp-up capabilities for the second half of the year,” said Jose R. Mas, Chief Executive Officer.
“Our recent contract wins further reinforce our belief that 2010, particularly the second half, should be an unprecedented year of opportunity for MasTec,” he added.
Reaffirmed 2010 Guidance
After the first quarter results, the company reaffirmed the 2010 earnings guidance range of 92 to 95 cents per share. MasTec is scheduled to report second quarter results on July 29, so things could change at that time.
Back in May, the company forecast a 20% increase in revenue for the second quarter to $465 million. Earnings per share are expected to be 15 cents.
Zacks Consensus Estimates Inline With Guidance
Analysts have moved their estimates inline with the company’s forecasts. The second quarter Zacks Consensus calls for 15 cents, which is the same as the company’s guidance.
For 2010, the consensus is holding at 94 cents, which is at the upper range of the company’s guidance.
This is earnings growth of just 4.4% in 2010 compared to 2009. Bigger growth is expected in 2011, with earnings expected to jump by 20.3%.
Value Fundamentals
MasTec is cheaper than its industry as it trades with a forward P/E of 10.8 compared to the industry at 14.3.
It has a price-to-book ratio of 1.4, which is well within the “value” range.
The company also sports a return on equity of 12.9% whereas the industry is at negative 2%.
| Analysts' Targets | |
| Stifel Nicolaus | $14 |
| Buy | |
| Monday, May 10, 2010 | |
No comments:
Post a Comment