MasTec, Inc. (MTZ): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
MasTec's adjusted earnings per share for the fourth quarter increased 13% to $0.53 and for 2013, it increased 25% to a record $1.90. MasTec s end markets offer compelling growth opportunities. The communications segment will benefit from increased demand for wireless and wireline services, the Electrical transmission segment will benefit from the maintenance, upgrade and expansion of the nation's electrical grid, while wind market will support the Power Generation and Industrial segment. A strong backlog and the acquisition of Big Country Energy Services also add to the growth story. We have thus initiated our coverage on MasTec with an Outperform recommendation and a target price of $50.


Overview:

MasTec, Inc. MTZ is a leading infrastructure construction company operating throughout the United States. The company engages in the building, installation, maintenance and upgrade of energy, communication and utility infrastructure. MasTec has been in operation for more than 80 years and currently has 380 locations with 13,450 employees.

MasTec caters to a wide range of industrial customers: utilities (including wind farms, solar farms and other renewable energy, natural gas gathering systems and pipeline infrastructure), communications (including wired and wireless telephony and satellite television) and government (including water, sewer and other utility and communications work on military bases. MasTec's top 10 customers for the year accounted for 69% of revenues in 2013. The company s 3 largest customers were Enbridge (18% of revenue), AT&T (18%) and DTV at 14%. The remaining customers in the top 10 list were: Enterprise, DCP Midstream, and Chesapeake Midstream at approximately 3% each, TransCanada at 3%, PPL at 2% and Samsung at 2%.

MasTec reports its results under five segments focused on broad end-user markets Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial and Other.

Communications (45% of 2013 revenues): The segment performs engineering, construction and maintenance of communications infrastructure mainly related to wireless and wireline communications and install-to-the-home.

Oil and Gas (38%): The segment performs engineering, construction and maintenance services on oil and natural gas pipelines and processing facilities for the energy and utilities industries.

Electrical Transmission (10%): The segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations.

Power Generation and Industrial: The segment primarily serves the energy and utility end-markets and other end-markets through the installation and construction of conventional and renewable power plants, related electrical transmission infrastructure, ethanol facilities and various types of industrial infrastructure.

Other: It primarily includes small business units that perform construction services for a variety of end markets in Mexico and elsewhere internationally.


MasTec, Inc. MTZ: Read the Full Research Report

MASTEC INC MTZ: Free Stock Analysis Report

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