MasTec's (NYSE:MTZ) EPS Lowered After Earn-Out Payment

MasTec (NYSE:MTZ) had their EPS estimates lowered after the earn-out payment which diluted the shares.

FBR said, "The company guides and reports GAAP EPS, which is what we provide to FirstCall. Our GAAP EPS estimate for 2010 is unchanged at $0.99, but we are lowering our 2011 estimate to $1.14 (from $1.17) to reflect the dilution of the shares issued for this earn-out payment. However, investors should also note that cash EPS 'after earn-out liabilities' (which are not reflected on the balance sheet, but due upon achievement of certain hurdles) is estimated to be $1.08 in 2010 and $0.93 in 2011. The decline YOY is a function of a $0.22 greater earn-out liability payment in 2010 before this recent agreement."

FBR Capital reiterates an "Outperform" rating on MasTec, which closed Wednesday at $14.54, down $0.14, or 0.95 percent. FBR has a price target of $19 on MasTec.