What happened

Shares of utility construction firm MasTec (MTZ 3.04%) jumped as much as 18% in trading Friday after reporting third-quarter 2022 financial results. The stock closed the day up 17.2%.

So what

Revenue for the quarter was up 38% to $2.5 billion, and net income was $49.2 million, or $1.34 per share. Adjusted net income, which pulls out one-time items, was $100.8 million, or $1.34 per share.

Analysts were expecting earnings of $1.29 per share, which is what investors were focused on today. Management also guided for fourth-quarter 2022 revenue of $2.9 billion, with adjusted earnings per share of $1.00. Analysts were expecting fourth-quarter revenue of $2.47 billion and earnings of $1.09 per share, so guidance was mixed.

Now what

Infrastructure spending continues to increase, and that's a tailwind for companies like MasTec. As the world builds more clean-energy power plants, transmission lines, and advanced energy technologies, there will be a demand for construction and installation services. Not a lot of companies have Mastec's scale.

The challenge for investors is valuing a company like MasTec. Analysts currently expect 2023 earnings of $5.41 per share, meaning the stock trades for 16 times next year's earnings. That's a good value if the company keeps growing, but investors will have a close eye on margins and the growth rate because if either fall, the stock could go with it.