The 10-second takeaway
For the quarter ended June 30 (Q2), Macquarie Infrastructure missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins shrank, net margins dropped.
Macquarie Infrastructure notched revenue of $252.6 million. The three analysts polled by S&P Capital IQ anticipated sales of $269.0 million on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $258.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.02. The three earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS were -$0.02 for Q2 versus $0.24 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 40.2%, 240 basis points better than the prior-year quarter. Operating margin was -0.5%, much worse than the prior-year quarter. Net margin was -0.3%, 460 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $270.5 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $1.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 374 members out of 402 rating the stock outperform, and 28 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give Macquarie Infrastructure a green thumbs-up, and six 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 $67.25.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.