Why Macquarie Infrastructure (MIC) Stock Is Down Today

NEW YORK (TheStreet) -- Macquarie Infrastructure (MIC) shares are down -1% to $66.82 on Thursday after the company priced its 10 million share secondary offering at $66.50 per share.

Shares are trading on heavy volume with 3.68 million shares changing hands, well above the stock's three month daily average of 251,145 shares.

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Barclays  (BCS), JPMorgan  (JPM), Macquarie, RBC Capital, SunTrust  (STI) and Wells Fargo  (WFC) will act as joint book running managers for the offering.

Underwriters have been granted a 30 day option to purchase up to an additional 1.5 million shares for the offering which is expected to close on July 15.

The company expects to use the funds it raises from the secondary offering to acquire the remainder of International-Matex Tank Terminals that it does not own.

TheStreet Ratings team rates MACQUARIE INFRASTRUCT CO LLC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MACQUARIE INFRASTRUCT CO LLC (MIC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

  • MACQUARIE INFRASTRUCT CO LLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MACQUARIE INFRASTRUCT CO LLC increased its bottom line by earning $0.60 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($1.26 versus $0.60).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Transportation Infrastructure industry. The net income increased by 246.9% when compared to the same quarter one year prior, rising from $5.87 million to $20.37 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 4.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 75.46% to $59.08 million when compared to the same quarter last year. In addition, MACQUARIE INFRASTRUCT CO LLC has also vastly surpassed the industry average cash flow growth rate of -3.60%.
  • 41.53% is the gross profit margin for MACQUARIE INFRASTRUCT CO LLC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MIC's net profit margin of 7.37% significantly trails the industry average.

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