MasTec earnings improved, may get even better
Aug 03, 2012 (Menafn - The Miami Herald - McClatchy-Tribune Information Services via COMTEX) --MasTec, the Coral Gables-based infrastructure construction company, on Thursday reported second-quarter earnings of 30.1 million on 992 million in revenue, up 38 percent compared to the second quarter of last year.
The earnings, at 37 cents per share, beat the 35-cent consensus of analysts' estimates but were down from 44.5 million, or 51 cents per share, in the second quarter of 2011.
MasTec said last year's quarterly net income included a non-cash, after-tax gain of 17.7 million, or 20 cents per share, related to the remeasurement of the company's initial 2010 33 percent equity investment in EC Source, an electrical transmission construction company. Excluding that remeasurement gain, this year's second-quarter earnings were up compared to 2011.
"MasTec had another good quarter," Chief Executive Jose R. Mas said in a statement. "We have excellent revenue and earnings momentum as we move into our seasonally stronger second half of the year. We continue to expect record revenue and earnings for 2012."
During the second quarter, MasTec sold its DirecTV retail marketing company, DirectStar TV, LLC, for 99 million in cash.
The company also completed its 150 million stock purchase plan, having repurchased a total of 9.47 million shares at an average purchase price of 15.84.
Raises 2012 guidance
J. Marc Lewis, MasTec's vice president of investor relations, said that based on the business outlook with customers, MasTec is raising its earnings guidance for the rest of the year. It raised its 2012 total full year guidance, saying it is now expecting 3.55 billion to 3.60 billion in revenue, and earnings per share of 1.50.
For the third quarter of 2012, MasTec said it expects revenue of 950 million to 1 billion, and earnings per share of 52 cents, representing a 15 percent to 21 percent increase in revenue and a 44 percent increase in earnings per share, compared to the third quarter of 2011.
MasTec's shares rose 1.52 or 9.5 percent to 17.50 in after-hours trading after results were released.
MasTec's customers are primarily utilities, communications companies and governments. Its work involves the engineering, building, installation, maintenance and upgrade of energy, communication and utility infrastructure.
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