CORAL GABLES, Fla. (AP) -- Shares of MasTec jumped 13 percent Friday after the utility contractor reported better-than-expected second-quarter results and its guidance for the year.
Net income for the April to June quarter fell 33 percent to $30.1 million, or 37 cents per share. However, a year ago, when the company posted net income of $44.5 million, or 51 cents per share, it added a one-time gain of 20 cents per share on an investment in a transmission construction company.
Excluding one-gains, net income actually rose nearly 16 percent for the quarter, and edged out Wall Street expectations by a penny, according to FactSet.
Revenue rose 38 percent to $992.2 million from $716.9 million last year. Analysts expected $889.5 million.
Gains were driven by the company's power generation and industrial, electrical transmission, oil and gas pipeline and facilities and install-to-the home businesses. MasTec's diversity is key, said Janney Capital Markets analyst Liam Burke.
"MasTec has made the transition from relying heavily on one business segment to becoming a diversified provider of energy and telecommunications infrastructure," Burke wrote. "The company is capitalizing on several underlying demand drivers, such as the discovery of new sources of natural gas, upgrade of the public utility infrastructure, investment in renewable energy, and increasing wireless carrier capital spending."
The company, based in Coral Gable, Fla., raised its guidance for the year when it released its report late Thursday. It now expects net income of $1.50 per share on revenue of $3.55 billion to $3.60 billion. That's up from prior guidance of $1.42 per share on revenue of $3.35 billion. Analysts had expected net income of $1.43 per share on revenue of $3.4 billion.
MasTec Inc. does engineering, installation and maintenance work on pipelines, power lines, buried cables and pump stations.
Shares rose $2.06 to $18.02 in midday trading. The stock had been down 8 percent for the year.