This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MasTec Management Discusses Q2 2012 Results - Earnings Call Transcript

In summary, we had another good quarter. Performance was very strong across all of our businesses, with the exception of the 2 challenging Marcellus projects, which we previously discussed. We are near completion on both of those projects and expect to be fully complete early in the third quarter. However, the effort to complete those projects has been more difficult and costly than we expected.

During the second quarter, we recorded a provision for losses of over $25 million related to these 2 projects. The projects have been a drain on both profits and resources, and we look forward to getting them behind us. Aside from those 2 projects, performance and execution throughout our business, including the rest of our pipeline business, has been excellent and ahead of our expectations. I'll discuss that in more detail in a minute.

Again, revenues for the quarter were up $275 million or 38% year-over-year, and up approximately $250 million or 33% sequentially from the first quarter. We are now expecting 2012 full year revenue growth of between 24% to 26%, and this comes off of 32% growth between 2010 and 2011. We continue to enjoy strong demand for our services, resulting in strong revenue growth. We also saw broad-based margin improvements, with the exception of the 2 Marcellus projects I spoke about.

Margins and margin improvement is our key area of focus, and we expect improvements in the second half of this year. I believe MasTec's diversified business model is our key differentiator and one that has helped drive our success. Today, we serve numerous markets and industries that we feel have solid long-term fundamentals with significant opportunities for expansion and growth. We strongly believe that our exposure to petroleum and natural gas pipelines and facilities, high-voltage electrical transmission, wireless infrastructure construction and the construction of power generation sources should continue to be excellent sources of growth and opportunity for MasTec for years to come.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $241.80 0.00%
YHOO $36.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs