MasTec Q3 Profit Meets View, But Revenues Top; Boosts 2013 Revenue Outlook

(RTTNews) - Infrastructure construction company MasTec, Inc. (MTZ) reported Thursday a profit for the third quarter that surged from last year, reflecting strong double-digit revenue growth. Adjusted earnings per share from continuing operations matched analysts' expectations, while quarterly revenues topped their estimates. The company also provided earnings guidance for the fourth quarter, below Street view, and reaffirmed its earnings forecast for the full-year 2013, while raising annual revenue outlook.

"MasTec had an excellent third quarter in terms of revenue, earnings, margin expansion and cash flow. We continue to expect that 2013 will be another record year," CEO Jose Mas said in a statement.

The Coral Gables, Florida-based specialty contractor reported net income of $46.14 million or $0.54 per share for the third quarter, higher than $26.82 million or $0.34 per share in the prior-year quarter.

Earnings from continuing operations for the quarter grew to $0.59 per share from last year's $0.45 per share. Excluding items, adjusted earnings from continuing operations for the quarter was $0.61 per share, compared to last year's $0.54 per share.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 19 percent to $1.27 billion from $1.07 billion in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $1.16 billion.

Oil and gas revenue soared up 83 percent, electrical transmission revenue surged 59 percent and communications revenues grew 11 percent, driven by a 38 percent increase in wireless projects. Meanwhile, revenue for the power generation and industrial segment plunged 60 percent from last year.

Looking ahead to the fourth quarter, MasTec expects adjusted earnings from continuing operations of $0.51, while analysts expect $0.53 per share.

For fiscal 2013, the company reaffirmed its earnings from continuing operations guidance of about $1.88 per share, and raised its revenue outlook to $4.25 billion from the previous guidance of $4.0 billion.

Street is currently looking for full-year 2013 earnings of $1.88 per share on annual revenues of $4.17 billion.

"We are excited about the opportunities that we have in the oil and gas, electrical transmission and wireless markets. We believe that we are well positioned and believe that, over the next few years, we can continue to take advantage of excellent growth opportunities in the markets we serve," Mas added.

MTZ closed Thursday's regular trading session at $31.97, down $0.86 or 2.52% on a volume of 1.23 million shares.