MasTec’s revenue and earnings took a big hit in the fourth quarter and for the year. But the contraction was not as large as investors in the Coral Gables-based infrastructure construction company were expecting and its shares rose.
In the fourth quarter, revenue was $1.03 billion, down 16.6 percent from the $1.23 billion in revenues in the fourth quarter a year before, but better than the 22.5 percent drop analysts were expecting. Adjusted net income from continuing operations was $16.8 million, down from $32.4 million the year before. Earnings per share were 21 cents down from 38 cents but 9 cents per share better than analyst expectations.
For the year, revenue was $4.2 billion, an 8.7 percent decrease compared with $4.6 billion for the prior year. Adjusted net income was $51.4 million, compared to $135.0 million for the prior year, or 64 cents per share compared to $1.57 the year before. MasTec also reported record levels of cash flow from operating activities at $367 million, a 14 percent increase compared to $323 million for the prior year.
In addition, the company announced that its board of directors has authorized up to $100 million in repurchases of the company’s shares.
The infrastructure giant released its earnings after close of trading Thursday. The stock surged in after-hours trading; Friday, the stock closed up almost 12 percent, at $16.23 per share.
MasTec CEO Jose Mas said, “2015 was a difficult year. However, we enter 2016 with a growing number of opportunities across our segments and record backlog,” referring to its 18-month backlog at $5.7 billion, a 31 percent increase over a year ago.
The company currently estimates 2016 revenue of approximately $4.6 to $4.8 billion. For the first quarter of 2016, MasTec expects revenue of about $950 million.
MasTec operates primarily in North America and caters to a range of industries. Its services include engineering, building, installation, maintenance and upgrade of energy, utility and communications infrastructure as well as industrial infrastructure.