Business

MasTec misses expectations

MasTec’s first-quarter revenue increased 4 percent to $1 billion from $964 million in the prior year, according to preliminary results released Monday. Increases were driven by its power generation, electrical transmission and communication segments, while its oil and gas segment decreased as expected. But continuing operations showed a net loss of $6.9 million, or $0.08 per diluted share, compared to net income from continuing operations of $16.2 million, or $0.19 per diluted share, for the first quarter of 2014. The results missed analysts’ expectations by 26 cents per share.

First-quarter 2015 results include approximately $0.12 per diluted share for non-operating and non-core charges not included in prior year results, which included costs for integrating WesTower, acquired last year; a loss related to a joint-venture and costs associated with an audit committee investigation into whether costs were assigned to the appropriate 2014 quarterly results. First-quarter results also include approximately $0.12 per diluted share in losses related to a Canadian wind farm project.

“We had a difficult start to 2015,” said Jose R. Mas, chief executive officer, via a release, blaming the tough winter weather and the weak Canadian dollar. But he delivered an optimistic outlook for 2016 and beyond. “We are seeing increasing opportunities in oil and gas, fiber deployment, electrical transmission, customer fulfillment, and in the deployment of wireless networks. In fact, while our oil and gas backlog is at record levels, we expect this segment’s backlog to more than double over the next few quarters.”

George Pita, CFO, lauded strong cash flow of $117 million during the quarter, which allowed the company to purchase 4.7 million shares of common stock at a cost of $91 million, part of a $100 million stock repurchase plan. Its shares closed Monday at $18.45, down .38 percent.

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