Why MasTec's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of infrastructure contractor MasTec (NYSE: MTZ  ) jumped 10% today after reporting first-quarter earnings.

So what: Revenue jumped 24% to $919 million during the first quarter and adjusted earnings per share jumped 93% to $0.27. Wall Street only expected $854.9 million in revenue and $0.24 per share in profit.  

Now what: MasTec was also able to improve its borrowing cost during the first quarter by issuing $400 million of 4.875% senior notes due 2013. This was lower than the previous 7.625% notes and lowers the company's costs going forward. Operationally the company is hitting on all cylinders and updated guidance to $1.80 per share in earnings this year. That's about in line with estimates and puts the stock at 17 times 2013 earnings. That's a price that will keep me on the sidelines today, but if the stock falls back near $25 in coming weeks, I think it would be a great buy.

Interested in more info on MasTec? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2407682, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:26:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement