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Macquarie (MIC) Earnings and Revenues Miss Estimates in Q1

Zacks Equity Research

Macquarie Infrastructure Company MIC reported income per share of 13 cents in first-quarter 2020 compared with 79 cents reported in the year-ago quarter. The decline was primarily attributable to lower revenues.

On an adjusted basis, the company’s earnings were $1.08 per share, missing the Zacks Consensus Estimate of $1.09. Also, the metric declined from $1.68 per share reported in the prior-year quarter.

Macquarie generated revenues of $416 million, down 14% year over year.  The decline was attributable to lackluster performance across all of its segments. Product revenues were $60 million, marking a decrease of 6.3% year over year. Service revenues declined 14.8% to $356 million. The top line missed the Zacks Consensus Estimate of $458 million.

Macquarie Infrastructure Company Price, Consensus and EPS Surprise

 

Macquarie Infrastructure Company Price, Consensus and EPS Surprise

Macquarie Infrastructure Company price-consensus-eps-surprise-chart | Macquarie Infrastructure Company Quote

Segment Details

Revenues from International-Matex Tank Terminals were $132 million, down 18% year over year. It represented 31.7% of the company’s first-quarter revenues. The segment’s EBITDA declined 26% year over year to $77 million.

Atlantic Aviation generated revenues of $224 million, down 13% year over year and accounted for 53.8% of the company’s overall revenues. The segment’s EBITDA declined year over year 16% to $66 million.

Revenues in MIC Hawaii were $60 million, down 6% year over year. It represented 14.5% of overall quarterly revenues. The segment’s EBITDA declined 25% year over year to $15 million.

Operating Costs

In the first quarter, Macquarie’s cost of services decreased 14% to $145 million on a year-over-year basis, whereas cost of product sales increased 5% to $42 million.

Selling and administrative expenses were $96 million, up 20% year over year. Overall, operating expenses declined 1% year over year to about $355 million.

Liquidity & Cash Flow

As of Mar 31, 2020, the company had cash and cash equivalents of $1,156 million, up from $357 million on Dec 31, 2019. Long-term debt was $3,253 million, up from $2,654 million recorded at the end of 2019. In the first three months of 2020, the company generated net cash of $99 million from operating activities, down 34.4% year over year.

During the quarter, the company paid out dividends amounting to $87 million, representing a 1.2% increase over the year-ago quarter’s disbursement.

Guidance

On uncertainties, regarding the impacts of the coronavirus outbreak on financial and operating results, Macquarie withdrew guidance for 2020.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks are Intellicheck, Inc. (IDN), iRobot Corporation (IRBT) and Berry Global Group, Inc. (BERY). All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intellicheck delivered a positive earnings surprise of 36.91%, on average, in the trailing four quarters.

iRobot delivered a positive earnings surprise of 233.53%, on average, in the trailing four quarters.

Berry Global delivered a positive earnings surprise of 6.63%, on average, in the trailing four quarters.

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