A Strong Q1 Sends MasTec Shares Soaring 13% Early Friday
Shares of MasTec (NYSE: MTZ), a leading infrastructure construction company, bucked broader market declines as they jumped 13% early Friday after the company released better-than-expected first-quarter results. By 3:28 p.m. EDT today, however, the stock had settled to a 3.6% gain.
Revenue declined 6.6% from the prior year to $1.4 billion, but that was still better than analysts' estimates calling for $1.3 billion. Adjusted earnings per share checked in at $0.60, which was $0.12 higher than management's guidance and $0.14 higher than analysts' estimates. The culprit behind the company's sales decline is clear: The communications, electrical transmission, and power generation segments were up 5%, 35%, and 51%, respectively, while oil and gas declined 42%. More first-quarter bright spots were record cash flow from operations of $203 million, and a record backlog of $8.3 billion.
In a press release, CEO Jose Mas said: "As it relates to COVID-19, we've assessed and continue to manage the impact across all of our segments. We are closely monitoring the impact the pandemic is having on commodity prices and, in particular, how it is affecting demand."
Source Fool.com
