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OMA reports 5.2% dip in September passenger traffic

EditorNatashya Angelica
Published 2024-10-08, 10:00 a/m
OMAB
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Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB; BMV:OMA), commonly known as OMA, has reported a 5.2% decline in terminal passenger traffic across its 13 airports for September 2024 compared to the same month in the previous year. The Mexican airport operator noted a significant 7.1% drop in domestic traffic, while international traffic saw a 10.5% increase.

The decrease in passenger traffic is partially attributed to the impact of Hurricane Otis, particularly at Acapulco Airport. When excluding Acapulco from the metrics, the remaining 12 airports experienced a combined decrease of 3.6%. Of the total passenger traffic handled in September, 99.4% was commercial and 0.6% accounted for general aviation.

OMA's announcement also included a cautionary note regarding forward-looking statements, advising investors that such statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company emphasized that it does not undertake any obligation to update its forward-looking statements.

OMA operates international airports in nine states of central and northern Mexico, including Monterrey, and popular tourist destinations such as Acapulco, Mazatlán, and Zihuatanejo. In addition to airport services, OMA also manages hotel properties within certain airport complexes. The company is publicly traded on both the Mexican Stock Exchange and the NASDAQ Global Select Market.

The information reported here is based on a press release statement and reflects the company's performance as of September 2024.

In other recent news, Grupo Aeroportuario del Centro Norte, known as OMA, has experienced several noteworthy developments. Scotiabank (TSX:BNS) upgraded OMA's stock from Sector Underperform to Sector Perform, despite a reduction in the price target to Peso180.00 from Peso199.00. This change reflects a more neutral view of the company's stock, suggesting it may perform in line with broader sector expectations.

Meanwhile, Morgan Stanley (NYSE:MS) upgraded OMA's stock from Equalweight to Overweight, despite lowering the price target to $77 from $82. This adjustment recognizes the potential of the stock and the low volatility of the company's business model.

In terms of financial performance, OMA reported a decline in passenger traffic for August 2024, with a 6.6% decrease compared to the same month the previous year. The company also reported mixed results in its second-quarter earnings for 2024, with a 2.4% decrease in total passenger traffic.

Despite these declines, OMA announced the commencement of four new routes which could contribute to future traffic growth. Furthermore, OMA published its 2023 Sustainability Report and third Green Bond Report, demonstrating the company's commitment to environmental and sustainability goals. These are the recent developments at OMA.

InvestingPro Insights

Despite the recent decline in passenger traffic, OMA's financial metrics paint a picture of a resilient company. According to InvestingPro data, OMA boasts impressive gross profit margins of 67.95% for the last twelve months as of Q2 2024, reflecting strong operational efficiency. This aligns with an InvestingPro Tip highlighting OMA's "impressive gross profit margins."

The company's financial health is further underscored by its dividend yield of 10.17%, which an InvestingPro Tip notes as "significant." This high yield could be particularly attractive to investors seeking income in the current market environment, especially considering the recent challenges in passenger traffic.

OMA's P/E ratio of 12.69 suggests it may be undervalued relative to its earnings, which is supported by another InvestingPro Tip indicating that the company is "trading at a low earnings multiple." This could present an opportunity for value investors, particularly if the company's traffic numbers recover in the coming months.

For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for OMA, providing a deeper understanding of the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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