MasTec's Q3 Earnings Beat Estimates, Backlog Rise, 24 View Up

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]