What happened to the stock of MasTec Inc. (MTZ)?

MasTec's stock was down on Friday after the engineering and construction firm posted quarterly earnings that fell short of analyst estimates.
CENTRAL, Hong Kong - April 5, 2022 - PRLog -- The stock was down roughly 12% as of today's mid-afternoon. MasTec stated aftermarket hours on Thursday that it earned $1.8 billion in the fourth quarter, about 11% higher than the same time in 2020. Non-GAAP net income on the other hand, fell to just under $100 million ($1.35 per share) from $128 million the year before.

This resulted in a mixed quarter for MasTec, as the average analyst projections for revenue was just under $1.9 billion, while adjusted per-share earnings were just $1.29. Three of the company's four primary business segments reported revenue growth in the first quarter. Communications, which is the most important in terms of sales, had a 20% growth in revenue to about $682 million. The most significant shift was in power delivery, which saw its revenue more than double to $285 million. However, the laggard segment, oil and gas, had a 44% drop to $335 million.

MasTec also provided forecasts for the first quarter and full year of 2022. It expects to match its fourth-quarter revenue of $1.8 billion in the first quarter, while losing $44 million on a GAAP basis. It didn't give a figure for the adjusted net loss. Project delays and integration expenses tied to the company's December purchase of utility services provider Henkels & McCoy are projected to contribute to the bottom-line deficit. The transaction was worth $600 million. For the whole year, MasTec expects revenue of roughly $9.95 billion, with a GAAP net income of $273 million.

The quarterly revenue prediction falls short of analyst expectations, although the yearly forecast doesn't. Professionals who watch the stock predict a first-quarter top line of $2.1 billion and a full-year top line of $9.83 billion.

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Sarah Chua
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