Why International Shipholding (ISH) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of International Shipholding Corporation (ISH) are down -2.44% to $28.03 on Tuesday after lowering its adjusted profit target for 2014.

The maritime transportation service for commercial and governmental customers said it expects to report a first quarter net loss between $3.3 million to $3.7 million.

"This result for the quarter is primarily attributable to lower than projected results from supplemental cargoes, repositioning days in the international dry bulk segment and out-of-service days in the Jones Act fleet related to both adverse weather conditions and repairs due to a machinery casualty to one vessel," the company said.

As a result, International Shipholding is now expecting its full year 2014 EBITDA to be $60 million to $64 million.

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TheStreet Ratings team rates INTL SHIPHOLDING CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTL SHIPHOLDING CORP (ISH) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 34.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 33.12% and other important driving factors, this stock has surged by 57.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ISH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Marine industry average. The net income increased by 46.2% when compared to the same quarter one year prior, rising from $11.54 million to $16.87 million.
  • Net operating cash flow has increased to -$1.87 million or 46.68% when compared to the same quarter last year. Despite an increase in cash flow, INTL SHIPHOLDING CORP's cash flow growth rate is still lower than the industry average growth rate of 70.03%.
  • You can view the full analysis from the report here: ISH Ratings Report

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