MasTec Joins Brightstar for Mobile Device Repair Services

A wholly-owned subsidiary of MasTec, Inc. MTZ and a leader in infrastructure and maintenance management in North America, MasTec North America Inc. has teamed up with Brightstar Corp. to offer mobile smartphone and tablet repair services throughout the United States.

Per the deal, MasTec will provide 3,000+ vans and personnel fleet to Brightstar to roll out its mobile device repair service to more than 85% of the country’s population. With the help of Brightstar’s trusted mobile repair expertise, MasTec intends to introduce a new level of customer experience and convenience, and offer safe, smart, as well as flexible repair options to consumers along with business users.

Brightstar is a global leader of end-to-end device lifecycle management solutions provider that operates a mobile smartphone and tablet repair business in the U.K. under the WeFix brand. It covers almost 94% of U.K.’s population with a fleet of more than 60 mobile workshops. The alliance will strengthen Brightstar’s device protection business in the United States. Also, it will ensure customer safety, increased options, better response times and unmatched convenience.

Zach McGuire, group president of MasTec Advanced Technologies said, "The time is now to expand on this type of direct-to-consumer model, and combining Brightstar’s industry expertise with MasTec’s people, process and infrastructure will drive a step-change in customer service and choice."

A Look at MasTec’s Strengths & Weaknesses

MasTec has been benefiting from continues flow of project awards, major expansion in 5G and FirstNet, wireline/fiber deployment, as well as accretive acquisitions despite some large project delays. Notably, its strong liquidity position and focus on protecting shareholder value are keeping it safe from the pandemic. Shares of MasTec have outperformed the industry in the past six months, reflecting that investors are confident about its fundamentals and prospects.

MasTec’s wireless/wireline business has significant potential, especially in the current environment wherein users need access to fast, reliable and contact-free flexible repair services to help them stay connected while staying safe. In the near future, substantial investments are expected in wireless infrastructure related to the densification associated with 5G deployment. Also, fiber expansion is likely to add to the bliss. A number of customers are aggressively deploying fiber assets. A considerable ramp up is expected in 2021.

As the largest wireless contractor in North America, MasTec is uniquely positioned to tap significant opportunities. The communications segment continues to offer attractive upside opportunities, driven by 5G investment and accelerating DISH as well as T-Mobile spending.

However, it may suffer a decline in home installation and customer fulfillment markets. Also, expected ramp-up costs from the Communications segment related to wireless and wireline fiber initiatives are likely to weigh on margins in the near future.

Zacks Rank

MasTec — which shares space with EMCOR Group, Inc. EME, Dycom Industries Inc. DY and Great Lakes Dredge & Dock Corporation GLDD in the Zacks Building Products - Heavy Construction industry — currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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