The 10-second takeaway
For the quarter ended June 30 (Q2), MasTec beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
MasTec reported revenue of $992.2 million. The nine analysts polled by S&P Capital IQ expected a top line of $888.1 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $750.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS of $0.37 for Q2 were 27% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.1%, 230 basis points worse than the prior-year quarter. Operating margin was 5.9%, 110 basis points worse than the prior-year quarter. Net margin was 3.0%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $918.7 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $3.43 billion. The average EPS estimate is $1.45.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 182 members out of 199 rating the stock outperform, and 17 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give MasTec a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MasTec is outperform, with an average price target of $23.91.
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