Core Viewpoint - MasTec (MTZ) has shown significant stock performance, with a 6.3% increase over the past month and an 80.3% gain since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Building Products - Heavy Construction industry [1] Performance Metrics - The stock reached a new 52-week high of $139.39 and has consistently exceeded earnings expectations, reporting EPS of $1.63 against a consensus estimate of $1.23 in its latest earnings report [1][2] Valuation Metrics - MasTec's current valuation shows a Price-to-Earnings (P/E) ratio of 43.7X for the current fiscal year, which is above the peer industry average of 22.2X, while its trailing cash flow basis is at 14.7X compared to the peer group's average of 14.6X [5] Style Scores - The company has a Value Score of C, with Growth and Momentum Scores both rated A, resulting in a combined VGM Score of A, indicating strong growth potential despite a moderate value rating [4][5] Zacks Rank - MasTec holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with investment strategies that favor stocks with high Zacks Ranks and favorable Style Scores [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: MasTec (MTZ) Stock Analysis - MasTec (MTZ) has shown a price increase of 6.3% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, MTZ has gained 25.3%, with a beta of 1.7, suggesting it moves 70% more than the market [5] - MTZ has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to MTZ earning a Zacks Rank 1 (Strong Buy), as analysts raising estimates attract more investor interest [7] - MTZ is trading at a Price-to-Sales ratio of 0.89, suggesting it is undervalued at 89 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides MTZ, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Group 1 - MasTec, Inc. will participate in a fireside chat at the Baird 2024 Global Industrial Conference on November 13th at approximately 1:45 p.m. Central Time [1] - One-on-one meetings with institutional investors and MasTec's senior management are being arranged as part of the conference [1] - Audio and presentation materials will be accessible through links on MasTec's "Investors" page, with a replay available for approximately 30 days [2] Group 2 - MasTec, Inc. is a leading infrastructure construction company operating mainly in North America, focusing on various industries [3] - The company's primary activities include engineering, building, installation, maintenance, and upgrade of communications, energy, and utility infrastructure [3] - MasTec's customers are primarily in the communications, energy, and utility sectors, with services including power delivery, power generation from clean energy, and pipeline infrastructure [3]

Core Viewpoint - MasTec Inc's stock has been on the rise following an increase in its 2024 adjusted earnings guidance, with analysts suggesting further growth potential due to improvements in key business segments [1][2]. Group 1: Company Performance - MasTec's Power Delivery, Clean Energy & Infrastructure (CE&I), and Communications segments are showing signs of recovery and are expected to drive revenue growth and margin expansion [2][4]. - The company has solidified its position in utility transmission and distribution through the acquisition of Henkels & McCoy and in renewables through the IEA acquisition [2]. Group 2: Analyst Insights - Analyst Jamie Cook upgraded MasTec's rating from Hold to Buy and raised the price target from $133 to $173, indicating strong confidence in the company's future performance [2]. - Cook highlighted that both MasTec and its competitor Quanta Services Inc are well-positioned to lead the market due to their competitive advantages, including scale, workforce, and balance sheet [3]. Group 3: Future Outlook - Strong top-line growth and margin expansion are anticipated in 2025, driven by secular growth in renewables and significant funding for communications infrastructure, particularly related to BEAD funding and a new partnership with AT&T [4]. - MasTec is expected to achieve double-digit EBITDA margins over the medium term after experiencing two years of margin pressure [4]. Group 4: Stock Performance - As of the latest publication, MasTec's shares have risen by 3.22% to $136.87, reflecting a 31% increase over the past six months [5].

Q3 2024 Performance - Q3 revenue reached $3.3 billion, driven by record non-Oil & Gas revenues, but fell approximately 6% below guidance due to near-term project delays[4] - Adjusted EBITDA increased by 13% year-over-year, with margins increasing by 110 bps[4] - Record Q3 Adjusted EBITDA exceeded guidance by $11 million, with margins approximately 85 bps ahead of expectations[4] - Cash flow from operations was $278 million in Q3 2024[4] Backlog - Total backlog stands at $13.9 billion, reflecting a sequential increase of $520 million and a year-over-year growth of $1.4 billion, driven by strong bookings of renewable energy projects[4,6] - Clean Energy and Infrastructure backlog conversion remains strong, growing $475 million sequentially and $1.1 billion year-over-year to approximately $4.1 billion[7] Segment Results - Q3 2024 revenue: Communications at $498 million, Clean Energy and Infrastructure at $1.138 billion, Power Delivery at $927 million, and Oil and Gas at $713 million[5] - Q3 2024 Adjusted EBITDA Margin %: Communications at 11.5%, Clean Energy and Infrastructure at 7.5%, Power Delivery at 8.6%, and Oil and Gas at 20.7%[5] 2024 Guidance - Full year revenue guidance is $12.225 billion[12] - Full year Adjusted EBITDA guidance is $990 million[12] - Full year Adjusted Diluted EPS guidance is $3.75[12] - The company anticipates 2024 full year cash flow from operations will approximate $700 million[14]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $3.3 billion, with adjusted EBITDA of $306 million and adjusted earnings per share of $1.63. Backlog at the end of the quarter was $13.9 billion, reflecting a sequential increase of $520 million [6][20]. - Adjusted EBITDA margin was 9.4%, exceeding guidance by 85 basis points, and the company met or exceeded adjusted EBITDA guidance for each segment despite lower-than-expected revenue [20][21]. Business Line Data and Key Metrics Changes - The Communications segment saw revenue growth of over 12% year-over-year and sequentially, achieving record quarterly revenues. The EBITDA margin for this segment was 11.5%, the highest in two years [8][11]. - The Clean Energy and Infrastructure segment also reported record quarterly revenue and EBITDA, with an EBITDA margin of 7.5%, the best performance since 2019 [8][15]. - The Power Delivery segment experienced a year-over-year revenue increase for the first time in 2024, with a 10% increase compared to guidance and sequentially [8][13]. - The Oil and Gas Pipeline segment's revenues were slightly lower than expected, but margins outperformed expectations [14][66]. Market Data and Key Metrics Changes - Total company non-oil and gas revenue increased over 15% sequentially, with non-oil and gas EBITDA improving 36% sequentially, driving earnings performance [9][20]. - Backlog for the Clean Energy & Infrastructure segment increased nearly $500 million sequentially, with a book-to-bill ratio of over 1.4x [16][25]. Company Strategy and Development Direction - The company is focused on improving margins across all segments while maintaining strong revenue growth, which is expected to lead to significant value creation for stakeholders [10][17]. - The management emphasized the importance of scale and integrated solutions to meet customer demands, positioning the company as a strong partner in the industry [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for services and the potential for organic growth, particularly in the Communications, Power Delivery, and Clean Energy segments [10][38]. - The company anticipates continued improvement in margins and revenue growth, with expectations for all major business lines to achieve double-digit growth year-over-year [38][66]. Other Important Information - The company has made significant investments post-pandemic to diversify its business and is well-positioned to benefit from the changing landscape in power generation and delivery [9][10]. - Cash flow from operations for Q3 was approximately $280 million, with net debt reduced by about $120 million, resulting in a net leverage of 2.2x [20][30]. Q&A Session Summary Question: Insights on margin performance across segments - Management noted that the strong margin performance across all segments is a result of significant investments made over the past few years, leading to operational success and improved financial results [34][36]. Question: Confidence in meeting 2025 forecasts - Management expressed confidence in achieving mid-teens EBITDA growth for 2025, with expectations for double-digit revenue growth across major business lines, except for Oil and Gas, which may remain flat [38][66]. Question: Clean Energy revenue ramp and project delays - Management clarified that the Clean Energy segment saw a sequential increase of over 20%, with some project delays due to material delivery and permits, but they remain optimistic about meeting Q4 targets [42][43]. Question: Cash flow drivers and M&A strategy - Management indicated that cash flow improvements are driven by better billing practices and a favorable mix of projects, with flexibility for potential M&A opportunities as the market remains active [44][45]. Question: Oil and Gas segment outlook - Management highlighted strong visibility for future projects in the Oil and Gas segment, with expectations for a healthy business environment moving forward, despite some cyclical revenue challenges [47][48]. Question: Clean Energy backlog and margin impact - Management reported strong bookings in the Clean Energy segment, with expectations for improved margins in 2025 as older projects are phased out and newer, more profitable projects are executed [49][51].

Core Insights - MasTec, Inc. (MTZ) reported strong third-quarter earnings for 2024, exceeding Zacks Consensus Estimate and showing significant year-over-year growth [1][4] - Despite the strong earnings, revenues fell short of analysts' expectations and experienced a slight decline compared to the previous year [2][4] Financial Performance - Adjusted earnings per share (EPS) reached $1.63, surpassing the Zacks Consensus Estimate of $1.23 by 32.5% and increasing 71.6% year-over-year from $0.95 [4] - Revenues totaled $3.25 billion, missing the consensus mark of $3.45 billion by 5.3%, and slightly down from $3.26 billion reported in the same quarter last year [4] Operational Highlights - The company reported an adjusted EBITDA of $305.9 million, up 13% from $271.1 million in the prior-year period, with an adjusted EBITDA margin increasing to 9.4% from 8.3% [8] - As of September 30, 2024, MasTec had a backlog of $13.86 billion, reflecting an 11% year-over-year increase, driven by strong bookings in renewable energy projects [5] Segment Performance - Communications segment revenues rose to $927.2 million from $824.4 million year-over-year, with an adjusted EBITDA margin expanding by 200 basis points to 11.5% [6] - Clean Energy and Infrastructure revenues increased to $1,138.4 million from $1,099.9 million, though the adjusted EBITDA margin decreased to 7.5%, down 230 basis points [6] - Power Delivery segment revenues grew to $712.5 million from $665 million, but the adjusted EBITDA margin contracted by 100 basis points to 7.6% [7] - Oil and Gas segment revenues fell to $497.8 million from $672.3 million, while the adjusted EBITDA margin improved to 20.7%, up 620 basis points year-over-year [7] Future Guidance - For Q4 2024, MasTec expects revenues of approximately $3.325 billion, an increase from $3.28 billion reported in Q4 2023, with adjusted EBITDA estimated at $259 million [11] - The company revised its 2024 revenue guidance to approximately $12.225 billion, down from the previous expectation of $12.4 billion, while raising adjusted EBITDA expectations to around $990 million [12] - Adjusted EPS for 2024 is now anticipated to be $3.75, significantly up from $1.97 reported in the prior year [13]

Core Insights - MasTec reported a profit beat for the third quarter, driven by tight cost controls, leading to an 8.5% increase in share price [1] - The company earned $1.63 per share on revenue of $3.3 billion, surpassing Wall Street's expectations of $1.23 per share on $3.4 billion in sales [2] - MasTec's backlog increased to $13.9 billion, up $1.4 billion year-over-year, indicating strong future business prospects [3] Financial Performance - The third-quarter earnings of $1.63 per share reflect a significant improvement in profitability, aided by reductions in overhead, interest expenses, and depreciation [2] - The company anticipates fourth-quarter earnings of $1.29 per share, exceeding Wall Street's estimate of $0.94 per share, and expects full-year earnings of $3.75 per share, which is $0.71 better than expected [3] Market Position and Outlook - MasTec focuses on large-scale government, communications, and energy projects, with a strong demand outlook, although the conversion of demand into revenue remains uncertain [4] - Despite a nearly 80% increase in stock price year-to-date, the company is managing expenses carefully, suggesting a cautious approach for potential investors [4]

Core Insights - MasTec reported revenue of $3.25 billion for the quarter ended September 2024, a slight decrease of 0.1% year-over-year, with an EPS of $1.63, up from $0.95 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $3.43 billion, resulting in a surprise of -5.31%, while the EPS exceeded expectations by 32.52% compared to the consensus estimate of $1.23 [1] Revenue Breakdown - Communications revenue was $927.20 million, compared to an estimated $972.90 million, reflecting a year-over-year increase of 12.5% [3] - Oil & Gas revenue reached $497.80 million, surpassing the average estimate of $468.90 million, but showed a significant decline of 26% year-over-year [3] - Eliminations revenue was reported at -$23.50 million, worse than the estimated -$5 million, marking a drastic increase of 422.2% compared to the previous year [3] - Clean Energy and Infrastructure revenue was $1.14 billion, below the estimated $1.36 billion, with a year-over-year growth of 3.5% [3] - Power Delivery revenue was $712.50 million, exceeding the average estimate of $632 million, indicating a year-over-year increase of 7.1% [3] Stock Performance - Over the past month, MasTec's shares have declined by 4.1%, contrasting with a 1% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

MasTec (MTZ) came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32.52%. A quarter ago, it was expected that this utility contractor would post earnings of $0.88 per share when it actually produced earnings of $0.96, delivering a surprise of 9.09%.Over the last four quarters, the company ...