As MasTec, Inc. (NYSE:MTZ) announced its earnings release on 31 December 2018, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 24% next year, though this is evidently lower than the historical 5-year average earnings growth of 31%. Currently with trailing-twelve-month earnings of US$260m, we can expect this to reach US$322m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Can we expect MasTec to keep growing?
The 9 analysts covering MTZ view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of MTZ’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, MTZ’s earnings should reach US$380m, from current levels of US$260m, resulting in an annual growth rate of 14%. EPS reaches $5.08 in the final year of forecast compared to the current $3.3 EPS today. In 2022, MTZ’s profit margin will have expanded from 3.8% to 4.7%.
Future outlook is only one aspect when you’re building an investment case for a stock. For MasTec, I’ve put together three important aspects you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is MasTec worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MasTec is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MasTec? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.