NYSE$MTZ

MasTec Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

MasTec's Q3 2020 results exceeded expectations, driven by strong cash flow and resilient business performance during the pandemic.

MasTec announced strong third quarter 2020 earnings results, exceeding guidance expectations with GAAP net income of $116.9 million, adjusted EBITDA of $265 million, and adjusted diluted earnings of $1.83 per share. The company reported revenue of $1.7 billion and strong cash flow from operations of $216 million, leading to a reduction in net debt levels. The company updated its guidance for the remainder of 2020.

  • Reported GAAP net income of $116.9 million and diluted earnings per share of $1.59.
  • Achieved adjusted EBITDA of $265 million and adjusted diluted earnings of $1.83 per share, surpassing guidance.
  • Generated strong cash flow from operations of $216 million in Q3 and a record $712 million year-to-date.
  • Maintained a strong balance sheet with reduced debt and record liquidity levels.

Headline financials

Total Revenue

$1.7B

Previous: $2.02B-15.8%
EPS (adj)

$1.83

Previous: $1.73+5.8%
Adjusted EBITDA Margin

15.6%

Previous: 12.5%+24.8%
18-month Backlog

$7.7B

Previous: $7.52B+2.4%
Free Cash Flow

$116M

Previous: $129M-9.4%
Net Income

$116M

Previous: $129M-9.4%
Operating Income

$115M

Previous: $230M-50.1%
Gross Profit

$235M

Previous: $326M-27.9%
Cash & Equivalents

$238M

Previous: $43.1M+452.7%
Total Assets

$5.2B

Previous: $4.86B+7.1%
Stock-Based Comp

$5.64M

Previous: $4.19M+34.5%

Revenue & EPS history

MasTec · Revenue · Quarterly

$1.7B

Q3 2020-15.8%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

MasTec · $1.71B total across 4 segments · Q3 2020

  • Communications
    $645M-5.0%
  • Clean Energy & Infra
    $469M+79.2%
  • Pipeline Infrastructure
    $463M-52.4%
  • Power Delivery
    $129M+24.8%

Forward guidance

For the fourth quarter of 2020, the Company expects revenue between $1.7 to $1.9 billion. Fourth quarter 2020 GAAP net income is expected to range between $108 to $115 million with GAAP diluted earnings per share expected to range between $1.47 to $1.57. Fourth quarter 2020 adjusted EBITDA, a non-GAAP measure, is expected to range between $252 to $263 million, with adjusted diluted earnings per share, a non-GAAP measure, expected to range between $1.64 to $1.73.

Tailwinds

  • Revenue is expected to be between $1.7 to $1.9 billion.
  • GAAP net income is expected to range between $108 to $115 million.
  • GAAP diluted earnings per share expected to range between $1.47 to $1.57.
  • Adjusted EBITDA is expected to range between $252 to $263 million.
  • Adjusted diluted earnings per share is expected to range between $1.64 to $1.73.

Headwinds

  • Fourth quarter project activity may vary based on the timing of additional regulatory and/or judicial approvals.
  • Fourth quarter project activity may vary based on winter weather conditions.
  • COVID-19 pandemic continues to have a negative impact on the Company’s operations
  • Company expects some continued negative impact from COVID-19
  • Revenue expectation incorporates a range of fourth quarter Oil & Gas segment revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+2.0%

Avg return

Earnings day

+3.4%

Avg return

5 days after

+5.0%

Avg return

30 days after

66%

43 / 65 earnings

Positive

+17.8%

Q2 2012

Best reaction

-18.4%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.3%+18.1%+2.2%
Q4 2025+2.8%+4.8%+9.0%
Q3 2025-5.8%-7.0%-0.0%
Q1 2025+4.9%+8.4%+16.4%
Q4 2024+3.0%+0.9%-9.1%
Q3 2024+8.3%+13.8%+20.0%
Q2 2024-7.1%-4.3%+2.8%
Q1 2024+15.1%+19.5%+27.0%
Q4 2023+13.5%+15.5%+24.7%
Q3 2023-16.3%-11.8%+3.7%
Q2 2023-18.4%-24.1%-18.5%
Q1 2023+1.9%+2.6%+20.4%
Q4 2022+4.2%+4.8%-1.9%
Q3 2022+13.7%+18.0%+14.6%
Q2 2022+2.0%-0.1%-1.0%
Q1 2022+0.2%-1.5%+5.5%
Q4 2021-9.1%-12.0%+0.8%
Q3 2021+4.5%+7.4%-0.9%
Q2 2021-4.1%-5.0%-6.5%
Q1 2021+3.3%+9.9%+10.8%
Q4 2020-2.7%+0.2%+1.1%
Q3 2020+5.4%+6.6%+22.8%
Q2 2020-0.3%+4.8%+17.0%
Q1 2020-2.1%-6.5%+3.2%
Q4 2019-7.9%-7.5%-44.7%
Q3 2019+6.1%+12.9%+2.9%
Q2 2019+13.1%+17.1%+22.5%
Q1 2019-1.9%+0.7%-8.6%
Q4 2018+9.4%+11.1%+12.2%
Q3 2018+9.7%+10.8%+3.6%
Q2 2018-1.5%-1.9%-7.6%
Q1 2018+4.0%+1.2%+6.4%
Q4 2017-3.4%-6.6%-10.8%
Q3 2017+0.1%+2.0%+4.8%
Q2 2017-6.0%-5.4%-8.0%
Q1 2017+7.2%+3.9%+0.0%
Q4 2016+6.9%+4.7%+1.5%
Q3 2016+7.1%+5.6%+36.2%
Q2 2016+14.0%+21.1%+19.5%
Q1 2016+0.7%
Q4 2015+14.1%
Q3 2015+4.2%
Q2 2015-6.7%
Q1 2015-12.6%
Q4 2014+6.5%
Q3 2014+7.3%
Q2 2014+7.3%
Q1 2014+0.3%
Q4 2013+7.1%
Q3 2013-0.8%
Q2 2013+5.5%
Q1 2013+14.8%
Q4 2012+1.9%
Q3 2012+2.7%
Q2 2012+17.8%
Q1 2011+3.7%
Q1 2012+3.7%
Q4 2011+10.6%
Q4 2009+10.6%
Q1 2010+10.6%
Q3 2011-18.0%
Q3 2010-18.0%
Q4 2010-8.8%
Q2 2010-8.8%
Q2 2011-8.8%

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