) shares jumped 13% in the past week after this infrastructure
construction company reported solid second quarter 2012 results,
including a positive revision in its full year guidance. With
estimates moving higher and a price-to-sales (P/S) ratio as low as
0.4, this Zacks #2 Rank (Buy) presents a true value option for
On August 2, MasTec, Inc. reported second quarter 2012 earnings per
share of 36 cents, which surpassed the Zacks Consensus Estimate by
2.9% and the year-ago earnings by 28.6%.
Revenue of $992 million spiked 38% year over year on the back of a
healthy growth in the power generation/industrial, electrical
transmission, oil and gas pipeline and facilities, and
The company also announced the completion of its $150 million stock
buyback program with the repurchase of roughly 9.47 million shares
for an average price of $15.84 per share.
Impressive second quarter results and bright prospects made
management revise its 2012 guidance. Revenue is now expected
between $3.55 billion and $3.60 billion versus $3.35 billion
expected earlier, while earnings were revised to $1.50 per share
Earnings Estimates Move Higher
Over the last 7 days, all six estimates increased for 2012, pushing
the Zacks Consensus Estimate up by 4.9% to $1.50 per share.
Meanwhile for 2013, four of 8 estimates moved upward, leading to a
2.9% rise in the Zacks Consensus Estimate to $1.75 per share.
The Zacks Consensus Estimates represent year-over-year earnings
growth of 40.0% for 2012 and 17.1% for 2013.
A Value Play
In addition to a low P/S, MasTec is currently trading at a forward
P/E multiple of 12.0 and a P/B multiple of 1.8. A P/S ratio lower
than 1.0, a P/E ratio below 15.0 and a P/B ratio under 3.0
generally indicate value.
The chart below clearly shows that things have been working in
favor of the company with shares reaching new highs since the
beginning of 2011. Growth prospects appear bright, as is backed by
the rising Zacks Consensus Estimates.
MasTec, Inc. provides infrastructure construction services
throughout North America under the MasTec service mark, mainly in
the utility, communications and government industries. Year-ending
2011, the company had 10,000 employees, more than 400 locations and
a solid $3.3 billion backlog. Also, the top ten customers accounted
for about 71% of revenue in the year, while its prime customers
DIRECTV and AT&T accounted for 23% each.
MasTec is based in Coral Gables, Florida, and was incorporated in
1929. It operates in the Industrial Goods sector and currently has
a market capitalization of approximately $1.44 billion.
MASTEC INC (MTZ): Free Stock Analysis Report
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