MasTec 1Q profit jumps fourfold after selling off assets

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April 30, 2008

CORAL GABLES, Fla.—Industrial contractor MasTec Inc. said its first-quarter earnings quadrupled from a year-ago period which included a hefty loss from now-divested operations.

MasTec, which provides building, installation and maintenance contract services, said late Tuesday its net income rose to $7.8 million, or 12 cents per share, from $1.7 million, or 3 cents per share, in the year-ago period.

Revenue rose 9 percent to $262 million from $241 million last year.

Analysts expected profit of 12 cents per share on revenue of $256 million, according to Thomson Financial.

MasTec shares rose 12 cents to $7.90 in morning trading.

Morgan Keegan analyst Simon Leopold said Mastec's revenue upside was led by higher sales to top customers DirecTV and Verizon, and unexpected outperformance by the company's utilities segment.

He maintained a "Market Perform" rating on the stock.