MTZ - Why MasTec Stock Is Crumbling Today
2023-11-01 11:53:14 ET
Construction company MasTec (NYSE: MTZ) is being hit with delays on big clean-energy and infrastructure projects, and the costs associated with those projects are weighing on results. Shares of MasTec fell 22% on Wednesday after the company missed on earnings and cut its guidance for the full year.
MasTec is an engineering and construction company focused on renewable energy generation, as well as communications, utility, and other infrastructure projects. The company earned $0.95 per share in the quarter on revenue of $3.26 billion, but that was well below the $1.87 per share on revenue of $3.76 billion that Wall Street had expected.
The issue, according to the company, is customer delays, especially in the clean energy and infrastructure segments, and MasTec's need to spend to maintain resources for when construction eventually begins. The company listed several reasons for delays, including interconnect-agreement lead times, supply chain issues, permitting delays, and uncertainty in tax equity funding.
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Why MasTec Stock Is Crumbling Today