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.
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.
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.
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.