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Macquarie's (MIC) Q4 Earnings & Revenues Miss Estimates

Published 02/25/2020, 09:25 PM
Updated 07/09/2023, 06:31 AM

Macquarie Infrastructure Company (NYSE:MIC) reported income per share of 16 cents in fourth-quarter 2019. The bottom line compared favorably with loss of 1 cent per share reported in the year-ago quarter. Lower operating expenses were primarily responsible for the improvement.

On an adjusted basis, the company’s earnings came in at 90 cents per share, missing the Zacks Consensus Estimate of $1.03.

Macquarie generated revenues of $424 million, down 3% year over year. The decline was attributable to divesture of some of its businesses in 2018. Product revenues came in at $60 million, a decrease of 3%. Service revenues declined 3% to $364 million. The top line missed the Zacks Consensus Estimate of $442 million.

In 2019, Macquarie generated revenues of $1,727 million, down 2% on a year-over-year basis.

Segment Details

Revenues from International-Matex Tank Terminals came in at $117 million, down 6% year over year. It represented 27.6% of the company’s fourth-quarter revenues. The segment’s EBITDA decreased 11% to $58 million.

Atlantic Aviation generated revenues of $248 million, flat year over year and accounted for 58.5% of the company’s overall revenues. The segment’s EBITDA increased 4% to $71 million.

Revenues in MIC Hawaii came in at $60 million, down 9% year over year. It represented 14.2% of overall quarterly revenues. The segment’s EBITDA decreased 13% to $14 million.

Operating Costs

In the fourth quarter, Macquarie’s cost of services decreased 5% to $169 million on a year-over-year basis, whereas cost of product sales declined 27% to $37 million.

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Selling and administrative expenses were $89 million, up 2% year over year. Overall, operating expenses declined 5% to about $369 million.

Liquidity & Cash Flow

As of Dec 31, 2019, the company had cash and cash equivalents of $357 million, down from $589 million on Dec 31, 2018. Long-term debt was $2,654 million, up from $2,653 million recorded at the end of 2018. In 2019, the company generated net cash of $468 million from operating activities, down 1.1%.

Macquarie authorized cash dividend of $1 per share for the fourth quarter, payable Mar 11 to shareholders of record as on Mar 6.

Guidance

The company expects 2020 adjusted EBITDA in the range of $575-$600 million. It expects to generate adjusted free cash flow in the band of $360-$400 million.

Zacks Rank & Key Picks

Macquarie currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks are Graco Inc. (NYSE:GGG) , Griffon Corporation (NYSE:GFF) and Tetra Tech, Inc. (NASDAQ:TTEK) . While Graco sports a Zacks Rank #1 (Strong Buy), Griffon and Tetra Tech carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Graco pulled off positive surprise of 0.40%, on average, in the last four quarters.

Griffon delivered positive earnings surprise of 20.34%, on average, in the trailing four quarters.

Tetra Tech came out with positive surprise of 8.31%, on average, in the last four quarters.

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Tetra Tech, Inc. (TTEK): Free Stock Analysis Report

Graco Inc. (GGG): Free Stock Analysis Report

Macquarie Infrastructure Company (MIC): Free Stock Analysis Report

Griffon Corporation (GFF): Free Stock Analysis Report

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