MasTec Cuts 2015 Outlook - Update

(RTTNews) - Infrastructure construction company MasTec, Inc (MTZ) Wednesday cut its outlook for full year 2015, citing uncertainties due to potential impact of lower world oil prices and expected lower levels of wireless project activity. The company backed its guidance for the fourth quarter of 2014.

In addition, MasTec's board has authorized the repurchase of up to $100 million of its common stock. According to the firm, the repurchases would be funded from cash on hand and availability under its revolving credit facility.

For 2015, the company now expects adjusted earnings from continuing operations of $1.87 per share. Adjusted earnings exclude non-cash stock-based compensation expense, net of tax, totaling $0.11 per share, and acquisition integration expense of $0.07 per share.

It anticipates 2015 revenue to increase 9 percent over expected 2014 revenue to $5.0 billion.

On average, 11 analysts polled by Thomson Reuters expect the company to report 2015 earnings per share of $2.00, on revenues of $5.25 billion. Analysts' estimates typically exclude special items.

In October end, the firm forecast adjusted earnings of $2.00 to $2.15 per share, on revenues of $5.2 to $5.4 billion for 2015.

The company noted that since issuance of its preliminary guidance range in October, a major customer has announced reduced levels of 2015 expected wireless project activity and world oil prices have significantly declined.

MasTec's revised 2015 guidance also includes the estimated impact of reduced levels of wireless project activity, based on previous public announcements by the major customer.

MasTec said it will provide further information on full year 2015 guidance in its upcoming fourth quarter earnings release, in light of ongoing changes in market conditions, which may impact 2015 expectations.

MTZ closed Tuesday's trading at $18.87, up 1.02 percent.