The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MasTec beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins shrank across the board.
MasTec reported revenue of $774.2 million. The 11 analysts polled by S&P Capital IQ expected revenue of $681.6 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $730.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.15. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share on the same basis. GAAP EPS of $0.10 for Q4 were 77% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.0%, 630 basis points worse than the prior-year quarter. Operating margin was 3.1%, 720 basis points worse than the prior-year quarter. Net margin was 1.1%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $654.6 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $3.21 billion. The average EPS estimate is $1.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 189 members out of 204 rating the stock outperform, and 15 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give MasTec a green thumbs-up, and four 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 $23.80.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.