Shares of MasTec rose after the infrastructure contractor said it is expanding its relationship with AT&T, a key customer, in part to help the cell carrier with its new equipment deal with Ericsson.
The stock rose more than 10% to $83.22 in morning trading. Shares are still down more than 17% from a year ago.
The company on Thursday evening reported fourth-quarter sales and adjusted earnings that both topped Wall Street analysts’ expectations, according to FactSet.
The company’s 2024 revenue guidance was short of analyst forecasts, but Chief Executive Jose Mas said the company has secured some new awards and expanded relationships that should boost results in 2025 and beyond.
Mas said the company’s wireless business is getting a boost from its biggest customer in the segment — AT&T. He said AT&T is leaning more on MasTec for core wireless work, but also that MasTec should get a multi-year benefit from AT&T’s new equipment deal with Ericsson.
“While we won’t see the impact of this new award until the second half of 2024, this award alone should increase our 2025 segment revenues by double digits,” Mas told analysts on a conference call.
He said the company is also winning more awards in its oil-and-gas business, and that its renewable energy unit is showing signs of recovering.