MasTec Sees a Great Year Ahead
For a long time, investors in construction project specialist MasTec (NYSE: MTZ) have focused on the company's exposure to the oil and gas industry. Low energy prices have hurt activity levels in the sector, and that in turn hurt MasTec's ability to do business there. As activity reappeared in energy, MasTec started to bounce back, but sluggishness in other parts of its business held it back to some extent.
Coming into Thursday's second-quarter financial report, MasTec investors were looking for the company to keep seeing an oil and gas rebound and get solid results elsewhere as well. MasTec's numbers were strong, and the construction company was confident enough about its future to raise its full-year guidance.
MasTec's second-quarter results were encouraging. Revenue jumped 20% to $1.94 billion, which was more than double the rate of growth MasTec achieved during the first quarter. Adjusted net income soared 46% to $122 million, and that produced adjusted earnings of $1.60 per share. That was quite a bit better than the consensus forecast among investors for just $1.12 per share on the bottom line.
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