MasTec, Inc.’s MTZ shares grew 4.3% in after-hours buying and selling on Could 6, after it reported spectacular first-quarter 2021 outcomes. The highest and backside strains handily surpassed the Zacks Consensus Estimate in addition to grew impressively on a year-over-year foundation.
Backed by sturdy first-quarter outcomes and the accretive INTREN acquisition, the corporate raised its 2021 steering.
Jose Mas, MasTec’s CEO, stated, “We’re happy with our sturdy first quarter outcomes and to be in place to considerably increase our annual 2021 income steering expectation to $8.2 billion, a 30%, or $1.9 billion greenback improve over final 12 months, with roughly $1.2 billion of this improve in our non-Oil & Gasoline segments. Our latest acquisition of INTREN considerably expands our operations within the electrical distribution and transmission market.
“With this acquisition, our Electrical Transmission section is predicted to strategy annualized income of roughly $1.2 billion, with sizeable progress alternatives in 2022 and past. We additionally proceed to have sturdy visibility into important progress alternatives in our Communications and Clear Power and Infrastructure segments.”
Contained in the Headlines
MasTec reported adjusted earnings of $1.10 per share, which surpassed the Zacks Consensus Estimate of 77 cents by 42.9% and outpaced its expectation of 80 cents by 37.5%. Encouragingly, the metric grew 83.3% from 60 cents per share within the prior-year quarter.
MasTec, Inc. Value, Consensus and EPS Shock
MasTec, Inc. price-consensus-eps-surprise-chart | MasTec, Inc. Quote
Revenues of $1.78 billion topped the consensus mark of $1.63 billion by 8.8% and elevated 25% 12 months over 12 months. Additionally, the reported determine outpaced MasTec’s expectation of $1.65 billion by 7.9%.
At quarter-end, the corporate had an 18-month backlog of $7.9 billion, flat sequentially.
Phase Replace
Revenues from Communications fell 11.7% 12 months over 12 months to $568.6 million. Adjusted EBITDA margin rose 70 foundation factors (bps) to eight.6%.
Electrical Transmission section’s revenues got here in at $133.5 million, up 4.2% from the year-ago quarter. Adjusted EBITDA margin got here in at 2.7%, 380 bps down from the year-ago interval.
Clear Power and Infrastructure’s revenues surged 22.4% 12 months over 12 months to $350.Four million. Adjusted EBITDA margin of three.1% improved 140 bps from the year-ago determine.
Revenues from the Oil and Gasoline section rose a notable 102% from the year-ago determine to $725.5 million. Adjusted EBITDA margin additionally improved a formidable 240 bps to 23.1%.
Operational Replace
The corporate reported adjusted EBITDA of $203.9 million, up 72.8% from the prior-year interval. Adjusted EBITDA margin additionally improved 320 bps to 11.5%.
Monetary Particulars
As of Dec 31, 2020, MasTec had money and money equivalents of $512.Four million in contrast with $423.1 million at 2020-end. Within the first quarter, the corporate supplied $257.2 million of money from working actions in contrast with $203.Three million a 12 months in the past.
2021 Steerage
Its 2021 steering signifies a 30% year-over-year enchancment in revenues. It additionally expects non-Oil & Gasoline segments’ revenues to enhance $1.2 billion from a 12 months in the past.
The corporate now expects to generate file revenues of $8.2 billion in 2021, up $400 million from the earlier projection of $7.Eight billion. Adjusted EBITDA is now anticipated to be $930 million (up from $875 million projected earlier). Adjusted earnings are anticipated to be $5.40 per share, reflecting a rise from the prior projection of $5. The estimated determine signifies a rise from $5.11 reported in 2020.
Second-Quarter View
MasTec expects second-quarter revenues of $2.1 billion. Adjusted EBITDA is estimated to be $229 million, suggesting progress from $165.7 million reported a 12 months in the past. Adjusted EBITDA is anticipated to be 10.9%, implying an increase of 30 bps 12 months over 12 months. Adjusted earnings per share for the second quarter are anticipated to be $1.25, pointing to progress from 30 cents within the prior-year quarter.
Zacks Rank
MasTec — which shares house with EMCOR Group, Inc. EME, Dycom Industries Inc. DY and Nice Lakes Dredge & Dock Corp. GLDD within the Zacks Constructing Merchandise – Heavy Development business — at the moment carries a Zacks Rank #3 (Maintain).
You possibly can see the whole record of as we speak’s Zacks #1 Rank (Robust Purchase) shares right here.
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