MasTec, Inc. (NYSE:MTZ) shares are trading higher on Friday after the company provided a solid fourth-quarter outlook and raised its FY24 adjusted EPS guidance.
On Thursday, the company reported revenue of $3.25 billion, missing the consensus of $3.42 billion.
The company’s 18-month backlog as of September 30, stood at $13.9 billion, up $1.4 billion from the third quarter of 2023.
Adjusted EBITDA rose to $305.9 million from $271.1 million in the quarter, with margins expanding to 9.4% from 8.3% a year ago.
Adjusted EPS of $1.63 topped the consensus of $1.23.
Operating cash flow for the nine months came in at $649.9 million and net debt stood at $2.14 billion as of September 30.
Paul DiMarco, MasTec’s Executive Vice President and Chief Financial Officer, said, “We again significantly exceeded our cash flow targets, generating $278 million of cash flow from operations in the quarter and driving net debt leverage down to 2.2x. The macrotrends in our end markets remain favorable and we will prioritize capital allocation to take advantage of opportunities for growth.”
Outlook: MasTec sees fourth-quarter adjusted EPS of $1.29 versus the consensus of $0.94 and sales of $3.325 billion against the estimate of $3.318 billion.
MasTec raised FY24 adjusted EPS guidance from $3.03 to $3.75 compared to the $3.04 estimate and lowered sales guidance from $12.40 billion to $12.225 billion compared to the street view of $12.399 billion.
Investors can gain exposure to the stock via Invesco S&P Midcap 400 Pure Value ETF (NYSE:RFV) and SHRT (NYSE:SHRT).
Price Action: MTZ shares are up 10.6% at $135.88 at the last check Friday.
Image via Shutterstock
Read Next:
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Why Is Infrastructure Construction Company MasTec Stock Surging Today? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.