Atlas Arteria shares rise as Q4 results beat expectations
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More news: Atlas Arteria shares rose after the toll road operator lifted revenue in the fourth quarter.
Its shares were up 1.52% to $5 in early trading. Over the past 12 months, the stock has fallen 6.45%.
RBC Capital Markets analyst Owen Birrell was positive on the company’s results and had a ‘sector perform’ rating on the stock with a price target of $5.
While the stock looked attractive from a yield perspective at around 8% dividend yield, Birrell said the perceived risk profile remained too high for many investors.
Atlas’ FY24 results are to be released on 27 February and the analyst said to gain comfort with the risk outlook, investors would be interested in hearing from new chief executive Hugh Wehby and his plans for the business going forward; what can be done to manage the uncertain French political environment; and the CY25 distribution guidance.
What they said: “ALX's 4Q24 update was in aggregate a broad based beat vs RBCe, with better than expected yoy performance across most markets,” Birrell said.
Atlas Arteria lifts toll revenue in December quarter
The news: Toll road operator Atlas Arteria has lifted revenue in the fourth quarter on the back of higher traffic and price increases.
The numbers: Weighted average traffic for the three months to December increased by 2.9% from a year ago, while average toll revenue increased 6.9% from a year ago. As a result, weighted average traffic for the year rose 0.6% from 2023, while average toll revenue was up 4.9% from a year ago.
The context: Atlas attributed the strong December quarter to higher light vehicle traffic at the France's APRR motorway and toll increases at the Chicago Skyway. Overall, toll increases across the majority of its businesses and robust traffic in France helped lift annual performance, it said.
Atlas operates the APRR and ADELAC toll roads in France spanning a total 2,424kms of motorway, and is also building the A412 Thonon-Machilly motorway in the country.
It also operates the Warnow Tunnel in Germany, as well as the Chicago Skyway and the Dulles Greenway in the US.
The source: ASX announcement
