The 10-second takeaway
For the quarter ended March 31 (Q1), MasTec beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
MasTec reported revenue of $778.5 million. The eight analysts polled by S&P Capital IQ hoped for sales of $725.0 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $618.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.17 for Q1 were 35% lower than the prior-year quarter's $0.26 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 12.1%, 240 basis points worse than the prior-year quarter. Operating margin was 4.1%, 270 basis points worse than the prior-year quarter. Net margin was 1.8%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $794.0 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $3.27 billion. The average EPS estimate is $1.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members out of 199 rating the stock outperform, and 15 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give MasTec a green thumbs-up, and six 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 $24.00.
Over the decades, small-cap stocks like MasTec have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add MasTec to My Watchlist.