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MasTec (MTZ) to Report Q2 Earnings: What's in the Offing?
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MasTec, Inc. (MTZ - Free Report) is slated to report second-quarter 2021 results on Aug 5, after the closing bell.
In the last reported quarter, adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate by 42.9% and 8.8%. On a year-over-year basis, the metrics improved 83.3% and 25%, respectively, driven by stellar performance of the Oil and Gas segment, strategic long-term goals and benefits from future business mix.
This leading infrastructure construction company’s earnings surpassed the Zacks Consensus Estimate in each of the last 22 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $1.25 per share, indicating a 31.6% increase from the year-ago figure of 95 cents. The consensus mark for revenues is $2.09 billion, suggesting a 33.4% improvement from the year-earlier quarter’s reported figure.
The company’s second-quarter revenues are likely to have benefited from solid Oil & Gas business. Also, significant presence in the telecommunications market — including 5G buildout capabilities; focus on the clean energy market including wind, solar, biofuels, hydrogen and storage; and its recent expansion into heavy infrastructure like road and heavy civil — is likely to have supported growth.
Its recent acquisitions of INTREN, Phoenix Industrial and Buyers Engineering are likely to have contributed to second-quarter revenues to some extent.
During first-quarter earnings call, MasTec provided its guidance for the second quarter. MasTec expects second-quarter revenues of $2.1 billion. It estimates adjusted EBITDA to be $229 million, suggesting growth from $165.7 million reported a year ago. Adjusted EBITDA margin is anticipated to be 10.9%, implying a rise of 30 basis points year over year. Adjusted earnings per share are expected to be $1.25.
The Zacks Consensus Estimate for Communications’ sales of $659 million indicates a 0.8% improvement from the year-ago reported figure. The same for adjusted EBITDA is currently pegged at $76 million, which implies no change from the year-ago period.
The consensus mark for the Clean Energy and Infrastructure segment’s sales is currently pegged at $597 million, implying a 40.1% increase from the year-earlier reported number. The same for adjusted EBITDA is pegged at $51 million, implying an increase of 69.4% from the prior-year reported figure.
The consensus estimate for Oil and Gas segment’s sales of $627 million indicates a 69.9% improvement from the year-ago reported figure. The same for adjusted EBITDA is currently pegged at $110 million, which implies a 37.5% rise from the year-ago period.
The consensus mark for the Electrical Transmission segment’s sales is currently pegged at $208 million, implying a 67.7% increase from the year-earlier reported number. The same for adjusted EBITDA is pegged at $16 million, implying a significant turnaround from the prior-year reported loss of $3.2 million.
MasTec anticipates Electrical Transmission backlog to improve on new MSA agreements and a number of larger projects. Oil and Gas pipeline segment’s backlog level is likely to have remained strong, as it has been witnessing strong demand for integrity service, gas distribution and line replacement activity. Meanwhile, Clean Energy and Infrastructure segment’s backlog is expected to rise. Yet, the consensus estimate for backlog of $7,914 million indicates a 3.5% decline from the year-ago reported figure.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for MasTec — which shares space with Dycom Industries, Inc. (DY - Free Report) , Great Lakes Dredge & Dock Corporation (GLDD - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the Zacks Building Products - Heavy Construction industry — this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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MasTec (MTZ) to Report Q2 Earnings: What's in the Offing?
MasTec, Inc. (MTZ - Free Report) is slated to report second-quarter 2021 results on Aug 5, after the closing bell.
In the last reported quarter, adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate by 42.9% and 8.8%. On a year-over-year basis, the metrics improved 83.3% and 25%, respectively, driven by stellar performance of the Oil and Gas segment, strategic long-term goals and benefits from future business mix.
This leading infrastructure construction company’s earnings surpassed the Zacks Consensus Estimate in each of the last 22 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $1.25 per share, indicating a 31.6% increase from the year-ago figure of 95 cents. The consensus mark for revenues is $2.09 billion, suggesting a 33.4% improvement from the year-earlier quarter’s reported figure.
MasTec, Inc. Price and EPS Surprise
MasTec, Inc. price-eps-surprise | MasTec, Inc. Quote
Factors to Note
The company’s second-quarter revenues are likely to have benefited from solid Oil & Gas business. Also, significant presence in the telecommunications market — including 5G buildout capabilities; focus on the clean energy market including wind, solar, biofuels, hydrogen and storage; and its recent expansion into heavy infrastructure like road and heavy civil — is likely to have supported growth.
Its recent acquisitions of INTREN, Phoenix Industrial and Buyers Engineering are likely to have contributed to second-quarter revenues to some extent.
During first-quarter earnings call, MasTec provided its guidance for the second quarter. MasTec expects second-quarter revenues of $2.1 billion. It estimates adjusted EBITDA to be $229 million, suggesting growth from $165.7 million reported a year ago. Adjusted EBITDA margin is anticipated to be 10.9%, implying a rise of 30 basis points year over year. Adjusted earnings per share are expected to be $1.25.
The Zacks Consensus Estimate for Communications’ sales of $659 million indicates a 0.8% improvement from the year-ago reported figure. The same for adjusted EBITDA is currently pegged at $76 million, which implies no change from the year-ago period.
The consensus mark for the Clean Energy and Infrastructure segment’s sales is currently pegged at $597 million, implying a 40.1% increase from the year-earlier reported number. The same for adjusted EBITDA is pegged at $51 million, implying an increase of 69.4% from the prior-year reported figure.
The consensus estimate for Oil and Gas segment’s sales of $627 million indicates a 69.9% improvement from the year-ago reported figure. The same for adjusted EBITDA is currently pegged at $110 million, which implies a 37.5% rise from the year-ago period.
The consensus mark for the Electrical Transmission segment’s sales is currently pegged at $208 million, implying a 67.7% increase from the year-earlier reported number. The same for adjusted EBITDA is pegged at $16 million, implying a significant turnaround from the prior-year reported loss of $3.2 million.
MasTec anticipates Electrical Transmission backlog to improve on new MSA agreements and a number of larger projects. Oil and Gas pipeline segment’s backlog level is likely to have remained strong, as it has been witnessing strong demand for integrity service, gas distribution and line replacement activity. Meanwhile, Clean Energy and Infrastructure segment’s backlog is expected to rise. Yet, the consensus estimate for backlog of $7,914 million indicates a 3.5% decline from the year-ago reported figure.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for MasTec — which shares space with Dycom Industries, Inc. (DY - Free Report) , Great Lakes Dredge & Dock Corporation (GLDD - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the Zacks Building Products - Heavy Construction industry — this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MasTec has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.