The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MasTec beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
MasTec reported revenue of $932.4 million. The nine analysts polled by S&P Capital IQ predicted revenue of $891.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $774.2 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 $0.45. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. Non-GAAP EPS of $0.45 for Q4 were 200% higher than the prior-year quarter's $0.15 per share. GAAP EPS of $0.44 for Q4 were 340% higher than the prior-year quarter's $0.10 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 14.8%, 380 basis points better than the prior-year quarter. Operating margin was 7.7%, 460 basis points better than the prior-year quarter. Net margin was 3.9%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $816.0 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $3.93 billion. The average EPS estimate is $1.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 219 members out of 235 rating the stock outperform, and 16 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 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 $27.70.
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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. The Motley Fool recommends MasTec. 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.