A month has gone by since the last earnings report for Macquarie . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Macquarie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Macquarie Earnings and Revenues Miss Estimates in Q1
Macquarie 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Macquarie has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Macquarie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Macquarie (MIC) Up 11.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Macquarie . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Macquarie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Macquarie Earnings and Revenues Miss Estimates in Q1
Macquarie 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Macquarie has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Macquarie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.