MasTec Profit Falls; Cuts FY Guidance - Update

(RTTNews) - Infrastructure construction company MasTec Inc (MTZ), Monday reported a decline in second-quarter profit, hurt by expenses that offset double-digit growth in revenue. Both earnings and revenue for the quarter were in line with Wall Street estimates.

The company provided some weak guidance for the third quarter and cut expectations for the full year, citing reduced wireless project revenue. MasTec shares dropped about 4 percent in after-hour trade on the New York Stock Exchange.

MasTec provides engineering, building, installation and maintenance services for energy, utility and communications infrastructure.

CEO Jose Mas said the quarter was challenging due to slowdown in wireless projects, adding that stability is expected in 2015.

The Coral Gables, Florida-based company posted quarterly net earnings of $32 million or $0.37 per share, compared with $34.9 million or $0.41 per share last year.

Excluding items, adjusted earnings for the quarter were $0.40 per share, compared with $0.47 per share a year ago.

On average, 10 analysts polled by Thomson Reuters expected earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the second quarter rose 13 percent to $1.1 billion from $977.6 million in the prior year. Analysts expected revenue of $1.09 billion for the quarter.

Communications, oil and gas, and power generation and industrial segments saw growth for the quarter, the company said.

General expenses were higher by about $2 million, depreciation and amortization costs increased by $3 million, and there were other expenses of $2 million, the company said. For the third quarter, MasTec projects adjusted earnings of $0.56 per share and revenue of $1.30 billion to $1.35 billion. Analysts currently expect earnings of $0.61 per share on revenue of $1.26 billion.

For fiscal year 2014, the company now projects adjusted earnings of $1.55 to $1.58 per share and revenue of $4.4 billion to $4.5 billion. The earlier projection was for earnings of $2.27 to $2.30 per share and revenue of $4.7 billion to $4.8 billion.

Analysts currently expect earnings of $1.82 per share on revenue of $4.54 billion for the year.

MTZ closed Monday at $28.07, up $1.21 or 4.50%, on a volume of 1.7 million shares. In after hours, the stock dropped $1.02 or 3.63% at $27.05.