MASTEC Reports Positive Financial Results for FY2023 Q2
August 28, 2023
☀️Earnings Overview
On August 3 2023, MASTEC ($NYSE:MTZ) reported their financial results from the second quarter of FY 2023, ending June 30 2023. This quarter saw a total revenue of USD 2874.1 million, a 24.9% increase from the previous year. Unfortunately, their net income was USD 15.5 million, a 4.1% decrease from the previous year.
Stock Price
MASTEC reported positive financial results for its second quarter of fiscal year 2023 (Q2 FY2023), with the company’s stock opening on Thursday at $121.4 and closing at $121.0, down by a slight 0.9% from its last closing price of 122.1. The company attributed this increase in revenue to strong sales from its core services, as well as its efforts in expanding its geographic reach.
Additionally, MASTEC has continued to invest in technological advancements to further enhance its core services, which has had a positive impact on their bottom line. Overall, MASTEC reported a positive financial performance for the second quarter of 2023, and is well-positioned to continue to grow its business in the future. With strong revenue growth and improved efficiency, the company is on track to achieving its goals for the rest of this fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mastec. More…
| Total Revenues | Net Income | Net Margin |
| 10.98k | -12.88 | -0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mastec. More…
| Operations | Investing | Financing |
| 252.85 | -742.62 | 471.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mastec. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.29k | 6.6k | 33.97 |
Key Ratios Snapshot
Some of the financial key ratios for Mastec are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.8% | -36.4% | 1.4% |
| FCF Margin | ROE | ROA |
| 0.5% | 3.7% | 1.1% |
Analysis
Our analysis of MASTEC‘s financials suggests that it is classified as a ‘cheetah’ company. This type of company has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. Its Star Chart reflects this conclusion as its growth is strong, profitability is medium and its asset and dividend scores are weak. In terms of its health score, the company scores 8 out of 10, which suggests that it is capable of sustaining its operations in times of crisis. This is due to its healthy cashflow and debt levels. Given the nature of the business and its financials, we believe that investors who are looking for high growth but might be willing to assume higher risk than usual may be interested in investing in MASTEC. More…
Peers
In the engineering and construction services industry, MasTec Inc faces competition from Assystem SA, Quanta Services Inc, and Elecnor SA. These companies are all large, international competitors with significant market share. While MasTec Inc has a strong presence in the United States, these companies have a strong international presence and are able to compete on a global scale.
– Assystem SA ($LTS:0OA7)
Assystem SA is a French engineering and consulting company. It was founded in 1966 and has since grown to become one of the largest engineering firms in the world. The company has a market capitalization of 547.52 million as of 2022 and a return on equity of 8.74%. Assystem SA provides engineering and consulting services to a variety of industries, including aerospace, defense, energy, transportation, and construction. The company has a strong presence in Europe, North America, and Asia.
– Quanta Services Inc ($NYSE:PWR)
Quanta Services, Inc. provides specialty contracting services in the United States, Canada, Australia, South America, and select other international markets. The company operates through Electric Power Infrastructure Services and Pipeline Infrastructure Services segments. The Electric Power Infrastructure Services segment engages in the installation, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure, including substations, underground and overhead conductor systems, and wireless and fiber optic communication systems. This segment also provides asset management services; and turnkey installation and maintenance services for solar power generation systems. The Pipeline Infrastructure Services segment engages in the construction, upgrade, repair, maintenance, and decommissioning of natural gas and oil pipelines, natural gas gathering systems, and other pipeline infrastructure; and provides asset management services. This segment also offers horizontal directional drilling services for the installation of pipelines and conduit systems. The company was founded in 1997 and is headquartered in Houston, Texas.
– Elecnor SA ($LTS:0K97)
Electricnor SA is a Spanish engineering and construction company. It focuses on the development, design, and construction of renewable energy projects, mainly wind farms. As of 2022, it has a market capitalization of 850.99 million dollars and a return on equity of 18.71%.
Summary
MASTEC, a provider of energy infrastructure services, recently released their financial results from FY2023 Q2. Total revenue increased 24.9% year over year, to USD 2874.1 million. Despite the growth in revenue, net income decreased 4.1% to USD 15.5 million. This could be seen as a sign of caution for potential investors, as it is a decrease from the prior year.
However, the strong revenue growth demonstrates the company’s potential for future growth. Investors should also consider the fact that MASTEC has good cash flow and low debt levels, making it an attractive option despite the decreased net income.
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