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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