MasTec Q4 Resulst Top Estimates, But Guides Q1 Below View

(RTTNews) - Infrastructure construction company MasTec, Inc. (MTZ) reported Thursday a profit for the fourth quarter that grew from last year, reflecting double-digit revenue growth amid strong growth across most segments.

Adjusted earnings per share from continuing operations and quarterly revenues topped analysts' expectations. The company also provided earnings and revenues guidance for the first quarter, well below Street view, and for the full-year 2014.

The Coral Gables, Florida-based specialty contractor reported net income of $41.5 million or $0.54 per share for the fourth quarter, higher than $36.3 million or $0.48 per share in the prior-year quarter.

Earnings from continuing operations for the quarter grew to $43 million or $0.50 per share from last year's $38 million or $0.46 per share. Excluding items, adjusted earnings from continuing operations for the quarter was $0.53 per share, compared to last year's $0.47 per share.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 24 percent to $1.16 billion from $932.36 billion in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of $1.09 billion.

Oil and gas revenue soared 103 percent, electrical transmission revenue grew 27 percent and communications revenues increased 8 percent, driven by a 40 percent increase in wireless projects. Meanwhile, revenue for the power generation and industrial segment plunged 59 percent from last year.

For fiscal 2013, the company reported net income of $140.95 million or $1.66 per share, higher than $107.43 million or $1.31 per share in the prior year. Net income from continuing operations grew to $147.67 million or $1.74 per share from $116.64 million or $1.42 per share in the year ago. Excluding items, adjusted earnings from continuing operations for the year was $1.90 per share, compared to last year's $1.53 per share. Revenues for the full year grew 16 percent to $4.32 billion from $3.73 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of $1.88 per share on annual revenues of $4.25 billion.

"2013 was another record-breaking year for MasTec in terms of revenue, earnings, EBITDA and with strong margin expansion and cash flow," CEO Jose Mas said in a statement.

Looking ahead to the first quarter, MasTec expects adjusted earnings from continuing operations of about $0.20 per share, on projected revenues of about $920 million. Analysts expect the company to report earnings of $0.38 per share on quarterly revenues of $1.04 billion.

For fiscal 2014, the company anticipates adjusted earnings from continuing operations in a range of $2.27 to $2.30 per share, on projected revenues between $4.65 billion and $4.70 billion.

Street is currently looking for full-year 2014 earnings of $2.26 per share on annual revenues of $4.69 billion.

"We continue to see great momentum in the markets we serve and are very excited about the growth opportunities for revenue and margin growth that exist across our wireless, oil and gas pipeline, electrical transmission, fiber deployment and renewable power markets. We expect another record year in 2014 and are bullish about our growth prospects in 2015 and beyond," Mas added.

MTZ closed Thursday's regular trading session at $38.07, down $0.15 or 0.39% on a volume of 0.70 million shares.