MasTec (MTZ) Surges to Record High Following Strong Q3 Earnings Beat and Upbeat Guidance
AInvestFriday, Nov 1, 2024 3:14 pm ET
1min read
MTZ --

MasTec shares gained over 5% after the company reported a significant Q3 earnings beat, complemented by a strong earnings outlook for Q4 and FY24. Although revenues for Q3 narrowly missed estimates, the company’s backlog growth, favorable guidance, and impressive adjusted EBITDA projections have buoyed investor confidence, propelling the stock to a new all-time high.

In Q3, MasTec reported earnings per share of $1.63, surpassing consensus estimates by $0.40, despite a slight dip in revenue of 0.1% year-over-year to $3.25 billion, just below the $3.43 billion target.

These results underscore MasTec’s ability to maintain profitability amid a challenging revenue environment, largely attributed to cost controls and efficient execution across projects. The company’s record 18-month backlog, standing at $13.9 billion as of September 30, 2024, highlights robust demand and significant growth opportunities across its various segments.

The company’s guidance for Q4 shows continued optimism, forecasting earnings per share of $1.29, above the $0.94 consensus, on revenue expectations of around $3.325 billion. This projected increase is also reflected in MasTec’s adjusted EBITDA forecast for the quarter, anticipated at approximately $259 million, suggesting further operational improvements.

On an annual basis, MasTec expects FY24 adjusted earnings per share of $3.75, comfortably outpacing analyst expectations of $3.01. However, revenue guidance for FY24 was adjusted slightly downwards to approximately $12.225 billion from the previous forecast of $12.40 billion.

The company’s record-breaking backlog offers substantial visibility into project workflows, which MasTec expects will be a significant driver of performance into 2025 and beyond. This backlog growth, combined with stable earnings guidance and solid demand across key segments, illustrates MasTec’s strong foundation for sustained profitability and expansion.

MasTec’s third-quarter report has evidently reassured investors, as the stock hit a new high of $138.87, although it has since pulled back slightly from that peak. Overall, the positive earnings beat and promising guidance signal strong potential for continued growth, making MasTec a compelling watch for investors in the infrastructure and engineering space.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.