Boston, MA 06/03/2014 (wallstreetpr) – The leading oil producer and marketing company MasTec, Inc.(NYSE:MTZ) recently updated the investors about the guidance for the second quarter of the current year. According to the spokesperson of the company, the upcoming results may not be that good as the current performance of the company has been hit hard by delays in wireless projects all across the world. Also, the global oil industry has not had a good time, and the demand of oil has decreased tremendously in past few months.
MasTec, Inc.(NYSE:MTZ) expects to earn fewer revenues from wireless operations than other areas of operations because there are so many wireless projects which have got delayed in recent months. Though the company has made it clear that revenues will grow in coming months, but still the overall growth will be lesser than last year. Due to the below expectations growth in the wireless revenues, the overall earnings from the communications department will suffer. According to an estimate, the total revenues from the communications department will not cross $45-$50 million mark in coming months.
According to market experts, the unexpected decline in the revenues is due to increase in variable cost by a significant margin. MasTec, Inc.(NYSE:MTZ) will further inform all the investors about any change that might take place in coming months. According to a report made public by the company, most of its oil and gas projects are delayed and also there is a huge pricing pressure because of global oil crisis, as a result of both of these negative impacts, MTZ’s oil revenues will also be below expectations. The demand has not increased, but the fixed cost associated with the oil operations has increased which has demonstrated the future expected results quite clearly.
In such situation, MasTec, Inc.(NYSE:MTZ) can only hope for a better quarter ahead and improved market situation that can strengthen the market position of the company in coming months.
