2023-08-04 16:14:00 ET
MasTec ( NYSE: MTZ ) -17.7% in Friday's trading to its lowest close since May after beating Q2 adjusted earnings estimates but cutting guidance for the full year, attributed in part to project delays at its recently acquired IEA operations.
Q2 net income edged higher to $16.8M, or $0.20/share, from $16.3M, or $0.20/share, in the year-earlier quarter, while revenues rose 25% Y/Y to $2.87B; 18-month backlog as of June 30 was $13.4B, up 22% compared to last year's Q2.
But MasTec ( MTZ ) cut full-year guidance for adjusted earnings to $3.75-$4.19/share from its prior outlook of $4.35-$4.85 and well below $4.51 consensus estimate, revenues to $12.7B-$13B from $13B-$13.2B previously and below $13.08B consensus, and adjusted EBITDA to $1.05B-$1.1B from $1.1B-$1.15B.
"While margins improved as expected, we did begin to see tighter management of capex by a number of customers," CEO Jose Mas said on the company's earnings conference call , adding that revenue for the rest of the year likely will be light in the Infrastructure and Energy Alternatives unit, which MasTec ( MTZ ) bought last year for more than $700M.
The CEO also said companies are delaying projects as they sort through the implications of the Inflation Reduction Act, with executives trying to understand the rules of the law and delaying project starts until they have clarity.
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MasTec plunges after slashing full-year earnings, sales guidance