On April 7, 2014, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). This was based on strong
fourth-quarter results, record revenues and earnings for 2013 and
a raised guidance.
Why the Upgrade?
Share price and earnings estimates for MasTec have been trending
upward following the release of its fourth-quarter 2013 results
on Feb 27. The company reported adjusted earnings of 53 cents per
share, up 13% year over year and ahead of the Zacks Consensus
For 2013, the company's adjusted earnings increased 25% year over
year to a record $1.90, which beat the Zacks Consensus Estimate.
Revenues also increased 16% year over year to $4.32 billion for
the full year, surpassing the Zacks Consensus Estimate. Strong
revenue growth across most segments drove the performance.
For 2014, MasTec expects revenues to be around $4.65 billion to
$4.7 billion and adjusted earnings per share in the range of
$2.27 to $2.30. For the first quarter of 2014, the company
projected revenues of about $920 million and earnings per share
of around 20 cents.
The company is witnessing strong momentum at its end markets.
Going forward, we expect MasTec to benefit from growth
opportunities, thereby boosting revenues and margins in the
wireless, oil and gas pipeline, electrical transmission, fiber
deployment and renewable power markets.
Notably, MasTec delivered positive earnings surprises in three of
the last four quarters with an average beat of 6.33%. The
long-term expected earnings growth rate for this stock is 8%.
Following the fourth-quarter earnings announcement, the Zacks
Consensus Esimate for MasTec increased 3.3% to $2.20 per share
for 2014 and by 11.8% to $2.65 per share for 2015.
Other Stocks to Consider
Some other stocks in the same sector that warrant a look include
Gibraltar Industries, Inc.
United Rentals, Inc.
). All of these have a Zacks Rank #2 (Buy).
MASTEC INC (MTZ): Free Stock Analysis Report
NORTEK INC (NTK): Get Free Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
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