Why Shares of MasTec Rose 11.4% in April
Shares of infrastructural engineering and construction company MasTec (NYSE: MTZ) rose 11.4% in April, according to data provided by S&P Global Market Intelligence. The gains came amid an increasing sense of optimism regarding the state of its end markets and the potential for the company to benefit from President Biden's proposed infrastructure bill.
MasTec's key end markets are the communications industry ($2.5 billion in revenue in 2020) and the oil and natural gas pipeline industry ($1.8 billion). It's also involved in the clean energy and infrastructure ($1.5 billion) spaces. However, its oil and natural gas business delivers earnings-margin percentages in the high-teens to low 20s, while its clean energy and infrastructure segment produces margins in the high-single-digit to low-double-digit percentages.
Meanwhile, management expects that its fourth end market, namely electrical transmission ($500 million), will deliver earnings margins in the low teens.
Source Fool.com
