The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Macquarie Infrastructure beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins contracted, net margins expanded.
Macquarie Infrastructure logged revenue of $250.2 million. The three analysts polled by S&P Capital IQ expected a top line of $230.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $221.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.97. The one earnings estimate compiled by S&P Capital IQ anticipated $0.21 per share on the same basis. GAAP EPS of $0.26 for Q4 were 189% higher than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.0%, 390 basis points worse than the prior-year quarter. Operating margin was 5.3%, 560 basis points worse than the prior-year quarter. Net margin was 4.9%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $245.6 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $989.2 million. The average EPS estimate is $1.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 361 members out of 385 rating the stock outperform, and 24 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give Macquarie Infrastructure a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Macquarie Infrastructure is buy, with an average price target of $33.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.