NEW YORK (TheStreet) -- Analysts at D.A. Davidson and Co. revised their estimates on Mas Tec Inc. (MTZ - Get Report) following the company's announcement that it lowered its 2014 second quarter forecast.
The firm lowered its earnings predictions to 37 cents per share from 50 cents per share to reflect the company's adjustments.
Shares of Mas Tec are higher by 2.31% to $32.80 on Tuesday showing a turnaround from Monday when the stock dropped 10.94%, resulting from the company's reduced guidance.
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Separately, TheStreet Ratings team rates MASTEC INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate MASTEC INC (MTZ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MTZ's share price has jumped by 25.14%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- MASTEC INC's earnings per share declined by 17.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MASTEC INC increased its bottom line by earning $1.74 versus $1.43 in the prior year. This year, the market expects an improvement in earnings ($2.29 versus $1.74).
- MTZ's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.47 is sturdy.
- You can view the full analysis from the report here: MTZ Ratings Report