MasTec shares tumble after mixed report, disappointing rev view

MasTec

04/08/2023 17:12

** Shares in MasTec Inc  MTZ.N  down 19.1% on track for biggest
one-day pct drop since March 2020 after quarterly report issued
late on Wednesday as revenue missed expectations, co cites
tighter capital spending among customers for disappointing
second-half outlook   
    ** On Friday, stock last traded down $23.13 at $97.83 after
falling as low as $97.03, its lowest point since May
    ** MTZ Q2 adj EPS of $0.89 compared with consensus Street
expectation for $0.85 but rev of $2.87 bln fell short of
consensus expectation for $3.0 billion, according to Refinitiv
    ** MTZ forecast FY 2023 rev from $12.7bln-$13.0bln vs Street
view of $13.17bln, sees adjusted diluted EPS $3.75-$4.19, Street
consensus estimate is $4.51, as per latest data from Refinitiv
    ** Co sees Q3 rev $3.8bln-$3.9bln, with Street view $3.7bln
Q3 2023, Co sees adjusted diluted EPS $1.85-$2.13 while Street
expectation is for $2.12 
        ** CEO Jose Mas said while margins improved co "did
begin to see tighter management of CAPEX by a number of
customers," sees rev at recently acquired IEA to be impacted in
second half due to  project delays, "with revenue being pushed
into 2024"
    ** "While we are disappointed with the second half revenue
expectations, our focus on improving margins has materialized
and we expect this to continue in the second half of 2023 and we
expect to enter 2024 with significant revenue growth and margin
expansion," Mas said
    ** YTD stock last up 14.6% vs 24.4% gain for S&P 400
Industrials index  .SPMDCI 

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))