Mastec (MTZ) Reports Strong Q1 Earnings, Analysts Bullish on Future Growth

KeyBanc's Sangita Jain raised their price target on Mastec (NYSE: MTZ) by 8.7% from $104 to $113 on May 6, 2024. The analyst maintained their Strong Buy rating on the stock. This update follows Mastec's Q1 2024 earnings report, which exceeded expectations and provided positive guidance for the future.

In the Q1 2024 earnings report, Mastec reported a loss per share of $0.13, beating both the Zacks Consensus Estimate of $(0.47) and Q1 2023's $0.54. Additionally, the company reported revenue of $2.69 billion, surpassing the Zacks Consensus Estimate of $2.67 billion and Q1 2023's $2.59 billion.

Looking ahead, Mastec's management provided guidance for Q2 2024 and FY 2024. For Q2 2024, the company expects earnings per share (EPS) of $0.88, slightly down from Q2 2023's $0.89. Mastec anticipates revenue of $3.1 billion, up from Q2 2023's $2.87 billion. The company also expects adjusted EBITDA of $260 million and an adjusted EBITDA margin of 8.4%, compared to Q2 2023's $255.4 million and 8.9%, respectively.

For FY 2024, Mastec projects EPS of $2.95, an increase from the previous estimate of $2.69. The company forecasts revenue of $12.55 billion, up from the prior $12.5 billion. Mastec also expects adjusted EBITDA of $975 million and an adjusted EBITDA margin of 7.8%, compared to the previous estimates of $955 million and 7.6%, respectively.

CEO Jose Mas expressed optimism about the company's performance, stating, "Our Q1 results significantly exceeded our expectations, and I expect 2024 to begin the validation of our investment and diversification strategy over the last few years." Mas also highlighted the potential growth opportunities in Mastec's various segments, including Power Delivery, Clean Energy and Infrastructure, Oil and Gas, and Communications.

CFO Paul DiMarco echoed Mas's sentiment, stating, "We are pleased to have exceeded our Q1 earnings guidance in each segment and reduced net debt leverage further than expected to 2.7x." DiMarco expressed confidence in the company's ability to capitalize on opportunities in the market and deliver results for their clients.

In addition to KeyBanc's Sangita Jain, other analysts also updated their ratings and price targets for Mastec on May 6, 2024. Baird's Andrew Wittmann raised their price target by 23.6% from $89 to $110 while maintaining a Hold rating on the stock. Truist Securities's Jamie Cook raised their price target by 13.5% from $96 to $109 and reiterated a Hold rating. B. Riley Securities's Alex Rygiel raised their price target by 15.4% from $104 to $120 and maintained a Strong Buy rating.

Currently, 72.7% of top-rated analysts rate Mastec as a Strong Buy or Buy, while 27.3% view it as a Hold. No analysts recommend or strongly recommend selling the stock.

Since Mastec's Q1 2024 earnings report on May 2, 2024, the stock price has risen by 16.3%. Year-over-year, the stock has increased by 20.2%. However, during this period, Mastec has trailed behind the S&P 500, which has seen a 25.2% increase.

KeyBanc analyst Sangita Jain is ranked in the top 20% of Wall Street analysts by WallStreetZen, with an average return of 24.1% and a 93.8% win rate. Jain specializes in the Technology, Utilities, and Industrials sectors.

Mastec Incorporated, headquartered in Coral Gables, FL, provides infrastructure services for the communications, energy, and utilities sectors in the U.S. and Canada. The company's services include building underground and overhead distribution systems, clean energy installations, electrical and gas transmission systems, and water and sewer infrastructure. Mastec was founded in 1929 and continues to play a vital role in supporting the country's infrastructure needs.

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