What happened 

Shares of MasTec, Inc. (NYSE:MTZ) jumped as much as 14.8% in early trading Friday after the industrial contractor reported third-quarter 2018 results. The stock gave back some of its gains as the day went on, but was still up 8.5% at 11:05 a.m. EDT. 

So what

Revenue rose 1% to $1.98 billion, coming in slightly below analyst expectations of $1.99 billion. But net income nearly doubled to $120.5 million, or $1.52 per share, and on an adjusted basis earnings were up 55% to $105.2 million, or $1.33 per share. It's this adjusted figure that analysts usually compare to and they only expected $1.25 per share in earnings. 

Oil pipelines on the ground.

Image source: Getty Images.

Growth in earnings was driven by the energy segment where adjusted EBITDA increased from $108.1 million a year ago to $155.8 million. Communications, the company's second biggest segment also saw adjusted EBITDA increased from $65.5 million a year ago to $74.8 million. 

Now what

It's good to be a contractor in communications and energy today, and that's what MasTec is taking advantage of. Companies are once again spending on energy projects now that oil prices have remained elevated for a few years, and consumption is climbing and next-generation communications networks are just beginning a big investment boom. Both segments have helped drive MasTec's record 18-month backlog of $7.8 billion, one indicator that the good times are just beginning for this stock. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends MasTec. The Motley Fool has a disclosure policy.