MasTec (NYSE: MTZ) plays a vital role in literally supporting the backbone of the U.S. economy: infrastructure.
For the last 75 years, MasTechas designed, built, installed, maintained and upgraded the telecommunications and utilities infrastructures of the U.S. This company has a hand in everything from telephone lines and high-speed Internet, to satellite and cable television services, to electric, water and natural gas utilities. All you have to do is look outside your window at the nearest telephone pole or glance across the fence at a neighbor's satellite dish to see where MTZ makes its money!
MasTec recently posted first-quarter earnings of $11.9 million or 16 cents per share, beating estimates by a penny. This 53% rise in quarterly profit was helped by a boost in revenue, which rose to $342.1 million due to the company's cost containment measures. Shares were down 7% after the earnings announcement because MasTec issued second-quarter and full-year guidance below what Wall Street was looking for.
I'm not concerned, though -- looking forward, it's more than likely that MasTec's guidance is on the conservative side. As President Obama's stimulus money filters through the economy, I expect this stock will benefit from the increase in infrastructure spending.
Small-cap stocks are the next big thing on Wall Street, and I rate MasTec a very strong buy.
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Reader Comments (Page 1 of 1)
5-18-2009 @ 5:17AM
al coholic said...
Look into the business practices of Mastec, underhanded labor relations, their incompetence in the field, and their reputations with customers like Directv before you tout them too highly.