MasTec, Inc. MTZ is scheduled to report fourth-quarter 2023 results on Feb 29, after the closing bell.

In the last reported quarter, its earnings missed the Zacks Consensus Estimate by 50.5% and declined 29.1% from a year ago. Revenues also missed the consensus mark by 15% year over year but rose 29.6%.

This leading infrastructure construction company surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, with an average of negative 9.4%.

Earnings & Revenue Expectations

The Zacks Consensus Estimate for MTZ’s fourth-quarter earnings has remained stable at 45 cents in the past 60 days. The estimated figure indicates a 56.3% decrease on a year-over-year basis.

MasTec, Inc. Price and EPS Surprise

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The consensus estimate for revenues is pegged at $3.26 billion, indicating an 8.5% year-over-year rise.

Factors to Note

MasTec’s revenues are expected to have increased in the fourth quarter of 2023, but earnings are likely to decline significantly. The company has been experiencing continued delays on certain Clean Energy and Infrastructure segment project start dates and softness in the Communications and Power Delivery businesses, along with higher costs.

The Zacks Consensus Estimate for the fourth-quarter revenues for the Clean Energy and Infrastructure segment is pegged at $1.18 billion, indicating an increase from $1.13 billion reported in the prior quarter.

For the Power Delivery unit, revenues are currently pegged at $597 million, down from $740 million reported a year ago.

The Zacks Consensus Estimate for the Communications segment is currently pegged at $754 million versus $859 million reported a year ago. The Communications segment is experiencing performance setbacks, primarily attributable to reduced business from select customers who are scaling back their capital spending in the latter half of 2023 following a robust first half.

For the Oil and Gas business, revenues are expected to grow immensely to $755 million from $292 million reported in the prior year.

For backlog, the consensus mark is currently pegged at $12.173 billion versus $12.979 billion reported a year ago.

However, Inflation Reduction Act's ambiguity, supply-chain challenges, delays in obtaining permits, and extended lead times for interconnection agreements are likely to have ailed its bottom line. The oil and gas industry looked grim in the past few months, which might have hurt its bottom line to some extent in the to-be-reported quarter.

For the fourth quarter of 2023, the company expects adjusted EBITDA to be $221 million, implying a decline from $257.9 million reported a year ago. Adjusted EBITDA margin is projected to be 6.7% versus 8.6% in the prior year. The company estimates adjusted earnings per share to be 44 cents for fourth-quarter 2023, suggesting a decline from the previous year’s figure of $1.03.