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CAAP reports substantial beat on earnings per share but fell short on revenue expectations

Published 2024-05-22, 05:00 p/m
© Reuters.
CAAP
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LUXEMBOURG - Corporación América Airports S.A. (NYSE: CAAP) has released its unaudited consolidated financial results for the first quarter ended March 31, 2024, demonstrating a robust performance with significant year-over-year (YoY) growth in key metrics. The company reported a substantial beat on earnings per share (EPS) but fell short on revenue compared to analyst expectations.

For the first quarter of 2024, CAAP announced an EPS of $0.95, which is $0.64 higher than the analyst estimate of $0.31. However, the company's revenue for the quarter was $433 million, not meeting the consensus estimate of $476.35 million. Despite the revenue shortfall, the company's financials showed a 12.4% increase in consolidated revenues excluding IFRIC12 compared to the same quarter last year, rising from $348.5 million in Q1 2023 to $391.7 million in Q1 2024.

The company's Adjusted EBITDA, excluding IFRIC12, also experienced a significant uplift, increasing by 16.4% to $163.2 million from $140.1 million in the prior-year period. This growth in Adjusted EBITDA and a reduction in debt levels have contributed to the company achieving a record low net leverage ratio of 1.2 times.

CEO Martín Eurnekian expressed satisfaction with the quarter's results, stating, "We are pleased to have started the new year on a solid footing, delivering a good performance across key operational and financial metrics." He highlighted the growth in Adjusted EBITDA and margin expansion as a result of strong momentum across most of the company's geographies.

Passenger traffic saw a 2.6% increase to 19.0 million passengers, and when adjusting for the discontinuation of operations in Natal, the growth was 4.3% YoY. Cargo volume and aircraft movements also experienced modest increases.

The company's strategic developments included a successful 10-year extension of the concession agreement for the Punta del Este international airport in Uruguay and a favorable final award of $91 million from the ICSID Arbitral Court related to the Chinchero International Airport in Peru.

Eurnekian also noted the company's ongoing negotiations for the expansion of airports in Armenia and Florence and its continuous evaluation of projects to expand its global airport portfolio. He acknowledged challenges in the Brazilian market but remained confident in the company's ability to navigate through them and continue creating value for shareholders.

While specific stock movement data following the earnings release was not provided, the positive earnings beat and strategic progress suggest a potentially favorable investor response. However, the revenue miss may temper this outlook.

Corporación América Airports continues to focus on its expansion strategy and operational efficiency to support future growth and maintain a strong financial position. The company's full earnings release and presentation can be found on its investor relations website.

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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