Revenue Analysis
MTZ has shown fluctuations in Total and Operating Revenues over the analysed periods, peaking at $3,280,083,000 in December 2023 before a slight reduction to $3,257,077,000 by September 2023. Gross Profit has mirrored these trends somewhat, with March 2023 noting the lowest at $225,165,000 and peaking at $399,959,000 by September 2023. The Gross Profit margin relative to Total Revenue varied between roughly 6.7% and 12.2% across these periods, suggesting variable cost control and pricing power.
Cost Management
Cost of Revenue has been substantial, ranging from $2,349,494,000 to $2,911,370,000, which significantly impacts Gross Profits. Operating Expenses also show considerable numbers, though relatively stable, ranging from $306,662,000 to $337,939,000 in the most recent periods. Total Expenses follow the trend set by the Cost of Revenue, illustrating escalating costs aligned with revenue increments.
Profitability Analysis
MTZ’s EBITDA has shown a notable decrease from $242,729,000 in September 2023 to $147,647,000 by March 2024. Operating Income and Pretax Income have shown significant volatility, with the Operating Income hitting a low of $515,000 in March 2024 from a high of $85,430,000 in September 2023. Net Income has notably swayed from $14,296,000 in September 2023 to a considerable loss of $41,180,000 by March 2024, indicating potential underlying issues affecting profitability.
Cash Flow Indicators
Reconciled Depreciation figures are consistently high, reflecting ongoing asset depreciation ranging from $141,126,000 to $157,299,000. Interest Expense remains a significant negative cash flow factor, maintaining figures close to $52,059,000 over the final analysed quarters.
Taxation
Tax rates have shown mixed signals, with a rate of 33.1% in September 2023 reducing significantly to 24.3% by March 2024. Tax Provision has also transformed from generating inflows to $11,079,000 despite losses, highlighting substantial fiscal impacts on the net income.
Shareholder Metrics
Diluted and Basic EPS have shown significant variability, moving from positive figures back to negative, with the March 2024 period indicating a Burdened EPS of -0.53. The number of Average Shares remained nearly steady, suggesting stable equity dilution over time. Net Income Available to Common Stockholders has turned significantly negative, pointing to lower returns for equity holders.
Conclusion
MTZ displays fluctuating financial health over the recent years with notable challenges in maintaining profitability. Costs of Revenue and Operating Expenses are considerably stable yet high, which coupled with unstable revenue streams, pressures the bottom line. Given these observations, MTZ may need to review its pricing strategies, cost management, and perhaps refine its operational efficiencies to enhance profitability and shareholder value.