Argentina's Corporación América Airports Q1 revenue beats estimates on passenger traffic growth

Overview

• Argentina-based airport operator's Q1 revenue beats analyst expectations

• Adjusted EBITDA for Q1 beat analyst expectations

• EPS for Q1 missed analyst expectations

Outlook

• Company sees solid demand continuing into the second qtr, particularly in international markets

• Company will continue to monitor geopolitical developments in the Middle East for potential impact on traffic

• Company remains focused on maintaining a healthy financial position and disciplined investment

Result Drivers

• PASSENGER TRAFFIC GROWTH - Co said Q1 passenger traffic rose 7%, led by a 14% increase in international travel, with broad-based gains across all countries

• AERONAUTICAL AND COMMERCIAL REVENUE - Co said revenue growth was supported by 21% increase in commercial and 17.4% increase in aeronautical revenues

• COST CONTROL AND COMMERCIAL EXECUTION - Co attributed margin expansion to disciplined cost control and active commercial execution

Company press release: ID:nBw2Zj7t3a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the airport operators & services peer group is "buy"

• Wall Street's median 12-month price target for Corporacion America Airports SA is $32.00, about 28.3% above its May 12 closing price of $24.94

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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