MasTec's stock saw a significant boost as the infrastructure contractor announced an expansion of its partnership with key customer AT&T. The increase is due in part to assisting AT&T with their new equipment deal with Ericsson.
Financial Performance
Shares of MasTec climbed over 10% to $83.22 during morning trading. Although shares remain down over 17% from a year prior, the company reported fourth-quarter sales and adjusted earnings that surpassed expectations set by Wall Street analysts, according to FactSet.
Future Prospects
Despite revenue guidance falling short of analyst predictions for 2024, CEO Jose Mas revealed that the company has secured new contracts and expanded partnerships that are expected to drive growth in 2025 and beyond. Mas emphasized the positive impact of AT&T's increased reliance on MasTec for wireless projects, including substantial benefits from AT&T's collaboration with Ericsson.
Growth Outlook
While the full effect of the new award won't be realized until the latter half of 2024, Mas anticipates a significant double-digit increase in segment revenues for 2025. Additionally, MasTec is experiencing success in its oil-and-gas sector and witnessing signs of recovery in its renewable energy division.
For more information, contact Will Feuer.
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