Why MasTec (MTZ) Stock Is Getting Hammered Wednesday

MasTec Inc MTZ shares are trading lower by 21.3% to $46.81 Wednesday morning after the company reported third-quarter results and cut their full year 2023 revenue and EPS outlook.

What Happened?

MasTec posted a quarterly adjusted earnings of 95 cents per share, marking a decrease compared to the same period last year from $1.34 per share. The company's quarterly sales were $3.26 billion, falling short of the analyst consensus estimate of $3.76 billion by 13.4%. 

However, this sales figure still represents a 29.61% increase in sales compared to the same period last year, which totaled $2.51 billion in sales.

In 2023, MasTec has revised its revenue outlook, reducing it from an initial range of $12.7 billion to $13 billion down to $12 billion. Additionally, the company has adjusted its EPS guidance, lowering it from the previously projected range of $3.75 to $4.19 to $1.75.

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What Else?

MasTec says third-quarter 2023 results were impacted by delays in clean energy projects due to various issues, resulting in margin pressures in the Clean Energy and Infrastructure segment.

This segment's activity is expected to remain lower in fourth-quarter due to a construction pause by Li-Cycle Holdings, Corp. However, the company has seen improvements with $500 million in new contract awards.

The Oil and Gas segment faced delays in the Mountain Valley Pipeline project but maintains its full-year revenue outlook. The Communications and Power Delivery segments experienced lower revenue due to customer deferrals.

These issues are expected to continue until annual budget cycles are replenished, with significant awards in the fourth quarter contributing to backlog growth.

According to data from Benzinga Pro, MTZ has a 52-week high of $123.33 and a 52-week low of $45.00.