MasTec
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MasTec beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Gross margins dropped, operating margins increased, net margins shrank.
Revenue details
MasTec reported revenue of $1.07 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $986.0 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $865.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.53. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.33 for Q3 were 8.3% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 13.4%, 50 basis points worse than the prior-year quarter. Operating margin was 7.3%, 20 basis points better than the prior-year quarter. Net margin was 2.5%, 120 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $864.6 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $3.61 billion. The average EPS estimate is $1.49.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 180 members out of 198 rating the stock outperform, and 18 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give MasTec a green thumbs-up, and five 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 $23.78.
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