NEW YORK (TheStreet) -- Navios Maritime Holdings (NM) was plunging 11.23% to $8.77 late Wednesday afternoon after the company reported fourth-quarter earnings that came up short of analysts' estimates.
Navios Maritime reported a loss of 18 cents a share, which was nine cents worse than the Capital IQ consensus estimate of a nine-cent loss. The company reported a loss of one cent per share in the fourth quarter one year ago. Revenues rose 1.6% year over year to $130.6 million from $128.5 million. This surpassed the consensus estimate of $128.63 million.
TheStreet Ratings team rates NAVIOS MARITIME HOLDINGS INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NAVIOS MARITIME HOLDINGS INC (NM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, NM's share price has jumped by 163.68%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The revenue fell significantly faster than the industry average of 11.6%. Since the same quarter one year prior, revenues fell by 25.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Marine industry. The net income has significantly decreased by 381.8% when compared to the same quarter one year ago, falling from $4.63 million to -$13.05 million.
- The gross profit margin for NAVIOS MARITIME HOLDINGS INC is currently lower than what is desirable, coming in at 28.98%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.67% is significantly below that of the industry average.
- You can view the full analysis from the report here: NM Ratings Report